RBC | The amount of money reported lost to fraud and scams in the United States nearly tripled from $3.5 billion in 2020 to $10 billion in 2023, according to the Federal Trade Commission (FTC).
If you haven’t already fallen prey to a scammer, a fraud scheme, identity theft, phishing emails, spoofing phone calls or catfishing, you know someone who has.
The Meeker Police Department organized a fraud/scam prevention seminar last week with assistance from Deena Ezzell, a victim advocate with the Colorado Bureau of Investigation (CBI).
Ezzell said people are often so embarrassed when they realize they’ve been scammed that they don’t tell anyone, adding that it’s not just the older generation who is at risk. Identity theft is increasingly common for younger people. They may never know unless they get pulled over and find out there’s a warrant out in their name, or attempt to travel and get flagged, or try to take out a loan or apply for a credit card only to learn someone has been using stolen credentials to borrow money in their name.
The scammers are getting more sophisticated in their methods, requiring more diligence on our part to protect ourselves. Some of Ezzell’s top tips include:
Slow down. Scammers, like bad salesmen, make everything urgent. If someone is insisting you take action right now, slow down. “There are very few things financially that have to be handled urgently,” Ezzell said.
Are they trying to scare you? Scammers use psychological techniques to get you to react without thinking. If someone is attempting to frighten you with dire threats, think twice before responding.
Have a “battle buddy.” Pair up with a friend or family member you can call for backup if you are unsure if a call, text, or email is the real deal. Just running the information by someone else can defuse the fear and urgency so you can think clearly. Saying out loud, “They said I’m the heir of a Nigerian princess and I’ll get my inheritance if I send them my banking information,” is enough to reconnect to your rational brain.
Create a “safe word” to use with family. So-called imposter scams, where someone pretends to be a child, grandchild, or friend, are on the increase, and artificial intelligence is making it even easier for scammers to look and even sound exactly like someone you know. Set your mobile phone so that calls that aren’t from someone in your contact list go directly to voicemail, and devise a safe word or a riddle that only friends and family know, like a secret password.
Question everything. “Spoofing” can make calls, emails, websites and more look like they’re coming from a trusted friend. When in doubt, shut it down. Don’t click on anything in an email or text message.
Place a credit freeze or fraud alert. Setting up a fraud alert through one of the credit reporting agencies will slow down scammers trying to access your accounts. A credit freeze is even better. Setting a freeze or alert is free.
Be wary of internet-based funding apps; they aren’t regulated like traditional banks.
Use reverse image search to check profiles that seem too good to be true and set your accounts to private.
Check your driver’s license online. This will tell you if someone has attempted to obtain identification using your information.
Change your passwords frequently or use a secure password manager. Your primary email address is an important password to keep secure. Ideally, you would have a different password for every account. Make sure you log out of financial sites and use two-factor security for accounts that offer it.
Run your credit report frequently and check for unfamiliar accounts.
Check your bank and credit card statements for unusual transactions, even small ones.
Ezzell said they are finding that many of the scammers are victims of human trafficking, forced to play the role of fraudster.
What to do if you get snared? CBI has a 24-hour ID theft and fraud hotline: 1-855-443-3489. The American Association of Retired Persons (AARP) also has a hotline to call: 877-908-3360.
This month’s AARP bulletin has a thorough prevention guide for fraud and scams, with more information online.
