FMCU Alert: Beware Of Scams!

Phone Scams

People lose money to phone scams - sometimes their life savings. Scammers have figured out countless ways to cheat you out of your money over the phone. In some scams, they act friendly and helpful. In others, they might threaten or try to scare you. One thing you can count on is that a phone scammer will try to get your money or your personal information to commit identity theft. Don't give it to them. Here's what you need to know.

How To Recognize a Phone Scam

Phone scams come in many forms, but they tend to make similar promises and threats, or ask you to pay certain ways.

• There is no prize: The caller might say you were "selected" for an offer or that you've won a lottery. But if you have to pay to get the prize, it's not a prize.
• You won't be arrested: Scammers might pretend to be law enforcement or a federal agency. They might say you'll be arrested, fined or deported if you don't pay taxes or some other debt right away. The goal is to scare you into paying. But real law enforcement and federal agencies won't call and threaten you.
• You don't need to decide now: Most legitimate businesses will give you time to think their offer over and get written information about it before asking you to commit. Take your time. Don't get pressured into deciding on the spot.
• There's never a good reason to send cash or pay with a gift card: Scammers will often ask you to pay in a way that makes it hard for you to get your money back - by wiring money, putting money on a gift card, prepaid card or cash reload card, or using a money transfer app. Anyone who asks you to pay that way is a scammer.
• Government agencies won't call to confirm your sensitive information: It's never a good idea to give out sensitive information like your Social Security number to someone who calls you unexpectedly, even if they say they're with the Social Security Administration or IRS.
• You shouldn't be getting all those calls: If a company is selling something, it needs your written permission to call you with a robocall. And if you're on the National Do Not Call Registry, you shouldn't get live sales calls from companies you haven't done business with before. Those calls are illegal. If someone is already breaking the law calling you, there's a good chance it's a scam. At the very least, it's a company you don't want to do business with.

Examples of Common Phone Scams

Any scam can happen over the phone. But here are common angles phone scammers like to use:

• Imposter scams: A scammer pretends to be someone you trust - a government agency like the Social Security Administration or the IRS, a family member, a love interest or someone claiming there's a problem with your computer. The scammer can even have a fake name or number show up on your caller ID to convince you.
• Debt relief and credit repair scams: Scammers will offer to lower your credit card interest rates, fix your credit or get your student loans forgiven if you pay their company a fee first. But you could end up losing your money and ruining your credit.
• Business and investment scams: Callers might promise to help you start your own business and give you business coaching, or guarantee big profits from an investment. Don't take their word for it. Learn about the FTC's Business Opportunity Rule, and check out investment opportunities with your state securities regulator.
• Charity scams: Scammers like to pose as charities. Scams requesting donations for disaster relief efforts are especially common on the phone. Always check out a charity before you give, and don't feel pressured to give immediately over the phone before you do.
• Extended car warranties: Scammers find out what kind of car you drive and when you bought it so they can urge you to buy overpriced - or worthless - service contracts.
• "Free" trials: A caller might promise a free trial but then sign you up for products - sometimes lots of products - that you're billed for every month until you cancel.
• Loan scams: Loan scams include advance fee loan scams, where scammers target people with a poor credit history and guarantee loans or credit cards for an up-front fee. Legitimate lenders don't make guarantees like that, especially if you have poor credit, no credit or a bankruptcy.
• Prize and lottery scams: In a typical prize scam, the caller will say you've won a prize, but then say you need to pay taxes, registration fees or shipping charges to get it. But after you pay, you find out there is no prize.
• Travel scams and timeshare scams: Scammers promise free or low-cost vacations that can end up costing you a lot in hidden costs. And sometimes, after you pay, you find out there is no vacation. In timeshare resale scams, scammers lie and tell you they'll sell your timeshare - and may even have a buyer lined up - if you pay them first.

How To Stop Calls from Scammers

• Hang up: Even if it's not a scammer calling, when a company is calling you illegally, it's not a company you want to do business with. When you get a robocall, don't press any numbers. Instead of letting you speak to a live operator or remove you from their call list, it might lead to more robocalls.
• Consider call blocking/labeling: Scammers can use the internet to make calls from all over the world. They don't care if you're on the National Do Not Call Registry. That's why your best defense against unwanted calls is call blocking. Which type of call-blocking or call-labeling technology you use will depend on the phone.
• Don't trust your caller ID: Scammers can make any name or number show up on your caller ID. That's called spoofing. So even if it looks like it's a government agency like the Social Security Administration calling, or like the call is from a local number, it could be a scammer calling from anywhere in the world.

What To Do If You Already Paid a Scammer

Scammers often ask you to pay in ways that make it tough to get your money back. No matter what payment method you used to pay, the sooner you act, the better.

• If you paid a scammer with a credit or debit card, you may be able to stop the transaction. Contact your card company or financial institution right away. Tell them what happened, and ask for a "chargeback" to reverse the charges.
• If you paid a scammer with a gift card, prepaid card or cash reload card, contact the company that issued the card right away. Tell them you paid a scammer with the card, and ask if they can refund your money. The sooner you contact them, the better the chance they'll be able to get your money back.
• If you paid a scammer by wiring money through companies like Western Union or MoneyGram, call the company immediately to report the fraud and file a complaint. Call the complaint department:
  • MoneyGram at 1-800-MONEYGRAM (1-800-666-3947)
  • Western Union at 1-800-325-6000
  Ask for the wire transfer to be reversed. It's unlikely to happen, but it's important to ask.
• If you paid a scammer using a money transfer app, contact the company behind the app. If the app is linked to a card, contact your card company or financial institution first.
• If you gave a scammer remote access to your computer, update your computer's security software. Then, run a scan and delete anything it identifies as a problem.
• f you gave your username and password to a scammer, change your password right away. If you use the same password for other accounts or sites, change it there, too. Create a new password that is strong.
• If you gave a scammer your Social Security number (SSN), visit IdentityTheft.gov to learn how to monitor your credit report to see if your SSN is being misused.
• If someone calls and offers to "help" you recover money you have already lost, don't give them money or personal information. You're probably dealing with a fake refund scam.

Report Phone Scams

If you've lost money to a phone scam or have information about the company or scammer who called you, report it at ReportFraud.ftc.gov. If you didn't lose money and just want to report a call, you can use the streamlined reporting form at DoNotCall.gov.

Source: consumer.ftc.gov