Scam Red Flags

Welcome to SD3FCU’s Fraud Friday blog! Here, you will find previous Fraud Friday Posts. Today, we will be discussing the most popular “Red Flags” or “Tells” to help you determine if the person talking is a scammer.
Firstly, for those who may not be up to date on their slang, let’s cover some definitions.
Slang - Slang is slang for “Shortened Language.” This is unimportant, but interesting.
Red Flag - commonly used as a warning of danger, today it will specifically surround the many signifiers of scams.
P2P Payment - Peer-to-Peer Payments are electronic money transfers that are run through P2P apps such as Zelle, CashApp, PayPal, and Venmo. This is not an exhaustive list of P2P apps, but pretty much any app that allows you to instantly transfer funds to your friends or family can also be used to perpetrate fraud.
Spoofing - Changing the Caller ID or Email to make it seem like a reputable organization or someone you know is contacting you.
Crypto - Slang for Cryptocurrency. Forms of electronic securities such as BitCoin, Ethereum, or DogeCoin
Information Highway - Slang for “Internet”
Highwaymen - A man, typically on horseback, who holds up travelers at gun point to rob them.
Bandit - a robber or outlaw typically operating in lawless areas.
Cracksman - A burglar, typically a safe cracker
Swindler - A person who uses deception to deprive someone of money or possessions.
Hyperspace - Another name for the Internet
W3 - Slang for World Wide Web
Mountebank - person who deceives others, especially in order to trick them out of their money, a charlatan.
Infobahn - Highspeed computer network, especially the internet
Charlatan - a person falsely claiming to have a special knowledge or skill; a fraud.

Without further ado, Red Flags for Scams:

The prolific tactics found in the scammers’ toolboxes include fear mongering, surprise, “emergencies,” bribery, and lies. These are only a few methods employed by the voracious malefactors intent on stealing your money, information, and happiness. So, how do you avoid these information highwaymen?

Generally, these cyber bandits will claim to be from organizations that you know. Oftentimes, they will use the name of government organizations such as the FTC, Social Security Administration, IRS, Medicare, or they’ll just make something up that sounds official. Other times, the cracksman will use names of reputable companies ranging from utility companies to tech companies. Sometimes, they will even claim to be a charity!

Coupled with an official sounding name, the ne’er-do-well will spoof their caller ID to make it look like a company is calling you. The technology they use changes the phone number that the caller ID displays, so the name and number you see may not be real.

Alongside the prolific lies touted by these deplorable swindlers, you will see the claim that there is a problem or prize. Many scammers will hit you with allegations claiming: you owe the government money; owe them money; someone in your family has an emergency; or that you have a virus on your computer. In many cases, claims that the victim won the lottery sweepstakes have been employed to hoodwink their mark to fork over a fee for funds that will never be seen. Many scammers will claim to be from your financial institution stating that there is a problem with your accounts.

These lies are bad enough, but the hyperspace villain won’t stop there. They will pressure you to act immediately. The intention here is to stop you from being able to verify their validity. They want you to act before you get the chance to think. When speaking with them on the phone, they will tell you to not hang up. This ensures that you can’t double-check their web of lies. In virus and computer scams, they may claim that your computer is about to be corrupted if you don’t act now! Over the phone they will threaten your freedom. Saying that they will have you arrested, revoke your licenses, or even threaten deportation.

Now, that they’ve stirred your emotions, the scammer will lead you to pay in a specific way. With the fuzz allegedly hot on your tail and your cousin in the ER, tensions are sky high. You have to act now. Acting now, if you ask the scammer, will mean to download a P2P payment app, go to a crypto ATM, buy gift cards, or wire transfer from a company such as Western Union or Money Gram, to pay the W3 mountebank. In your state of panic, this may seem reasonable; however, this is precisely what the scammer is hoping. In some scams, they may send you a check to deposit in your account and tell you to send a portion back to them or to someone else. Naturally, this check will bounce, and you will then be held liable for the false check and any additional fees while the Infobahn Charlatan moves to their next mark.

“This is all terrifying and makes me never want to touch technology again. That’s not really an option, so how do I avoid it?” - Dear Reader.

Well, I’m glad I fed you that line, dear reader, it’s a fantastic question!

Scam avoidance strategies:
Block unwanted calls and text messages. There are several ways to do this. One way is by manually adding them to your block list as they arrive. Another option is to use Incogni (check out incogni.com for more information). Incogni is a company that helps you get your information out of the ever-encompassing maws of data brokers. They will contact data brokers on your behalf and have them delete the information they have stored on you. Many users have reported a significant decrease in fraudulent calls within just two months.

Don’t give your personal or financial information in response to a request that you didn’t expect. Honest organizations won’t call, email, or text you to ask for your personal information, such as, Social Security, Bank Account, or Credit Card Numbers. If you get an email or text from a company that you do business with and you think it’s real, it is still a safer option to not click any links. Instead, first contact them through a website that you know is trustworthy. If it’s a phone call, look up the phone number. Do not call the number they give you or call the number on the caller ID.

Do not fold to the pressure to act immediately! Honest businesses will give you the time you need to sort things out. We want your decision to be your own. Anyone who pressures you to pay or give personal information is a scammer.

Remember how scammers tell you to pay. Never pay someone who insists that you can only pay with crypto, wire transfer, gift cards, or P2P payment apps. Beyond this, NEVER deposit a check and send money back to someone.

Finally, and most importantly, talk to someone you trust. This can be a family member, neighbor, friend, or even a teller at your local credit union; however, before you do anything else, tell someone what happened. Often times, talking about it could help you realize that it’s a scam.

If you have been scammed or think you may have been scammed, tell the FTC at ReportFraud.ftc.gov.

Thank you for reading and have a wonderful day!