If you’re worried about scams, you’re not alone. Scammers are crafty, sophisticated, and are constantly coming up with new tricks to part us from our money. When it comes to scams, the best approach is to prevent scams before they happen. Continue reading to learn about the latest trends in scams.Cryptocurrency
While the cryptocurrency frenzy may have died down, crypto scammers are still going strong. Scams can involve cryptocurrency in different ways. Cryptocurrency scams include investment scams. Some scammers may demand payment in cryptocurrency. Some scammers may demand payment in cryptocurrency. This can include romance scammers demanding cryptocurrency or other individuals pretending to be from a business or the government demanding cryptocurrency.
No legitimate business will demand that you send them cryptocurrency in advance to buy something or to protect your money. The government or your local utilities will not ask for payment in cryptocurrency. Only scammers will guarantee big profits or returns on an investment in cryptocurrency. Don’t trust anyone who promises that you can quickly and easily make money in the cryptocurrency markets. Investment scammers will promise that you can make lots of money with no risk. Don’t believe them! Cryptocurrency scams often originate in dating or online apps or websites, or in a call, text, or email. It’s a good idea to never mix online dating and investment advice. If you meet someone on a dating app and they want to show you how to invest in cryptocurrency or send them cryptocurrency, it’s a scam. Lastly, beware of bitcoin (a type of cryptocurrency) ATMs in stores and beware of anyone who asks you to use one of these machines.
AI and Scams
Artificial intelligence, or AI, is a big trend in scams. Scammers take advantage of new technology to create more effective scams. Scammers use AI to write more convincing or natural sounding emails and text messages. AI can also be used to create deepfakes. A deepfake is a video, image, or audio recording that has been manipulated using AI. Scammers create deepfakes of celebrities to trick us into thinking that we’re investing in a good product or company. It can be really difficult to tell a real photo, video, or audio recording from a fake one. AI can also be used to impersonate others and trick us into giving away money or information about ourselves. A scammer can use AI to impersonate someone we know like a friend or relative, an employer, a business, or the government.
Student Loans
The upheaval and back forth changes to student loans that occurred over the past few years created opportunities for scammers seeking to take advantage of this uncertainty. Recent student loan scams include scammers charging an application fee to apply for debt relief. Scammers also create fake loan forgiveness applications designed to steal unsuspecting applicants’ information.
Online Purchase Scams
With many Americans purchasing things online, online purchase scams proliferated. Scammers list items for sale that don’t exist on websites or online marketplaces. Scammers also set up fake e-commerce websites selling fake products. These scammers even go so far as to buy ads on social media for their fake websites to make the websites look legitimate and drum up business.
Employment Scams
Employment scams are difficult to detect and often target people who have been out of work. These scams are sophisticated and can play out over an extended period of time. The scams can include interviews and other elements of a legitimate hiring process. Scammers may seek to collect personal information. Scammers might have the victim purchase fake equipment or trainings as a part of the hiring process. Employment scams can also include money mule scams. Money mules work collecting and moving money for scammers. Being a money mule for scammers is illegal. Another employment scam can involve sending an overlarge fake paycheck to the victim and asking them to refund the extra over pay.
Voiceprint Scams
Voiceprint scams involve the scammers using technology to capture a recording of your voice and using and manipulating that recording to impersonate you. Scammers can do things like access your bank account or other accounts with this scam.
Report Scams
If you are scammed, don’t be embarrassed. When it comes to scams, we have a victim blaming culture. We want to protect ourselves and we may feel that someone who fell for a scam has no one to blame but themselves. This mindset leads to shame and embarrassment that prevents us from speaking out and seeking help if we or someone we love is victimized by a scammer. We could more appropriately say when rather than if we are victimized, because we are all at risk from these relentless tactics. Scammers know about this reluctance to seek help and they count on it.
It’s always a good idea to report scams, regardless of how much money is lost. Report scams as quickly as possible. Check out our scam reporting checklist:
- Federal Trade Commission: ReportFraud.FTC.gov
- File a complaint with the FBI’s Internet Crime Complaint Center, regardless of dollar loss www.ic3.gov
- Contact local law enforcement
- Contact your financial institution (bank, credit union, etc.)
- Consumer Financial Protection Bureau http://www.consumerfinance.gov/
- Federal Trade Commission IdentityTheft.gov
- Report to the payment provider you used to send money. For example, if you paid with gift cards, report the scam to the company that issued the gift card. If you wired money to a scammer, report the scam to the institution or company you used to send the wire transfer.
If you want advice on protecting yourself from scams or assistance with reporting scams, Contra Costa Senior Legal Services can help. Call us at (925) 609-7900 for assistance.