Scammed – Protecting Yourself from Financial Fraud

Earlier this month, The Washington Post ran a series of articles about a Rockville woman who was scammed out of her life savings. In “Scammed,” a seven-part series, personal finance columnist Michelle Singletary deconstructs how one woman lost her life’s savings to a government impersonation scam. Singletary spent months interviewing fraud victims, law enforcement, policymakers and victim advocates, and reviewing scores of emails, texts and financial documents to show how scammers exploit human nature and technology to manipulate their victims.

Her conclusion? Anyone can be scammed.

Below are highlights from a live Q&A about recognizing and protecting yourself from scams.

• Most victims never see any money back but there are still the rare cases where the FBI has been able to trace stolen funds via cryptocurrency transactions.
• Though coming forward can be difficult if you’ve been victimized, it’s important to notify law enforcement. File a complaint with the Federal Trade Commission at ReportFraud.ftc.gov and the FBI’s Internet Crime Complaint Center at ic3.gov.
• Michelle Singletary: The truth is these scams are so good you can’t tell. My credit card company texted me that my card had been compromised. It popped up under text messages I knew were legit. Still, I said to myself, the devil is a liar, “No, sir, not today.” I called the number on the back of my card and told them I didn’t trust the text. The representative said, “I understand, but this time it was for real.” My advice: Trust nothing. Trust no one. Assume everything you get is suspect.
• What are the three most important things you can do to protect against financial scams initiated by phone, text or email?

1. 1. Trust no one. Trust nothing you get via email, text, or phone call. If your spouse calls and says to transfer money, hang up and call them back. AI is allowing criminals to impersonate people’s voices.
   2. Try to remember not acting protects you more than reacting quickly. If you do nothing and your money is stolen, the bank has to give it back. But, if through manipulation, you make a move by giving a criminal a code or access to your account, it’s harder to get the money back if not impossible.
   3. The moment someone says, “Don’t tell anyone,” it’s a scam. 100% of the time.

Six signs of a scam

Here are some insights from victims on how to spot a scam:

1. You are told to keep quiet. Scammers use secrecy to keep you isolated. The goal is to gain your trust and separate you from the people in your life who might catch on that you are being manipulated. The moment you are told not to tell or trust anyone else, cease all communication.
2. It’s the government calling. The FTC, FBI, IRS, Social Security, or the local police will not call, text, or email demanding payment in cash, a gift card, wire transfer, or cryptocurrency. Also, don’t trust caller ID. Scammers use technology to make it appear as if they are calling from your financial institution or a government agency. Just hang up, look up the bank or agency number, and call to check whether there is an issue.
3. You are instructed to move your money to “protect it.” If you are coached to transfer funds out of your bank, investment, or retirement account for your protection, it is a scam. Crooks also will try to get you to buy gold, gift cards or cryptocurrency as a means to protect your assets. It’s a lie.
4. Threatened with criminal prosecution. Fear is a powerful motivator. In many cases, scammers tell victims they could be arrested because their Social Security number was used in the commission of a crime.
5. You are told to lie. Many victims are instructed to make up stories to avoid questions or suspicions about their withdrawals. A legitimate government employee or bank personnel would not tell you to lie to protect your money.
6. Pressure tactics. Scammers want to create a sense of urgency. They want you to act before you have time to think about and verify their information. If they pressure you to stay on the phone to walk you through a directive, such as withdrawing money from an ATM or buying gift cards, it’s a scam.

Resources for financial fraud victims

If you or a loved one has been scammed, call the AARP Fraud Watch Network helpline at 877-908-3360 or go online at aarp.org/fraudhelpline.

AARP Fraud Victim Support Group provides an online forum for scam victims. Group sessions are confidential and led by trained facilitators. They also are open to friends and family; go to aarp.org/fraudsupport.

Though coming forward can be difficult if you’ve been victimized, it’s important to notify law enforcement. File a complaint with the Federal Trade Commission at ReportFraud.ftc.gov and the FBI’s Internet Crime Complaint Center at ic3.gov.

U.S. Department of Justice’s National Elder Fraud Hotline: 833-FRAUD-11 or 833-372-8311
Monday–Friday, 10:00 a.m.–6:00 p.m. eastern time
https://stopelderfraud.ovc.ojp.gov/