This type of call and others that are similar often are used by scammers to con victims out of personal information or cash. It’s a crime that is on the rise, with more than 13 million reports in the last two decades alone.
The Federal Trade Commission (FTC) reported that, in 2016, Ohio ranked 17th in the United States for complaints of fraud, with well over 77,000, and it was 27th in identity theft incidents, at more than 11,000. The Dayton area, alone, saw more than 4,000 instances of fraud and identity theft last year.
While it’s difficult to stop these criminals from trying to scam people, you can prepare yourself ahead of time and know how to avoid becoming prey to their schemes.
Who are the targets of these scams?
While there is a higher percentage of elderly people that are targets for scammers, age is not the only characteristic in choosing victims. Here are the areas scammers commonly consider when selecting their targets:
- Living situation: A 2014 AARP study of scams reported that 66 percent of victims felt isolated either due to living alone or due to have little regular contact with a larger community or circle of reliable people.
- Phone vs. internet: The Financial Fraud Research Center reports that people are more likely to be hooked by supposed telemarketers. However, the frequency of internet fraud, the report says, is on the rise.
- Financial situation: While scammers do look for people from whom they can steal money (often reasons for targeting elderly people with nest eggs), they really hone in on targets who are in debt. They often leverage your difficult situation by offering a way out.
- Situational: Often times, scammers see a larger societal event arise as an opportunity, such as Hurricanes Harvey or Irma. The New York Times recently published an article on ways to donate to the disaster relief for Harvey victims. However, the article also included a section on how to avoid donation scams, directing readers to the Charity Navigator, a reliable charity identifier.
Common scams
Scammers have and will make use of a milieu of ever-changing tactics to prey on victims. A few of the more common scams that have impacted local individuals are:
- Shutting off or discounting your utilities: Some local residents recently were scammed by threats from fake DP&L employees, for example, that their power would be shut off if a bill isn't paid, or that they were selected for a special discount.
- You're a winner: One local family was defrauded of $48,000 by an organization that claimed the family had won a cash prize of $600,000 in a sweepstakes scam.
- Your relative is in jail: Many families in the Miami Valley have been targeted by way of their children or grandchildren. Scammers, like these in Middletown, have falsely claimed to be a relative in trouble and in dire need of financial help.
- Social Security: The Social Security Administration is already a comprehensive, data-driven arm of the federal government, with detailed information and records on you and your fellow citizens. However, some scammers have been posing as Social Security employees requesting info to update records or even announce a 1.7 percent cost-of-living-adjustment.
Warning signs
In October of 2015, the IRS released issued a public warning for consumers to guard against scam phone calls and provided a list of things to watch out for:
- Claims to be official employees
- Attempts to intimidate and scare consumers into paying
- Caller ID spoofing
How to protect yourself
- Never give anyone personal information, such as your Social Security number, bank account or credit card number, unless you initiated the conversation and are confident the transaction is legitimate.
- Most companies offer a variety of payment options, so be skeptical of an organization demanding payment in a particular way.
- Demand to see identification for anyone who comes to your door -- this is standard for government agencies and utility providers.
- If someone pressures you to provide personal or financial information, hang up immediately. Notify your local police department.
What to do if the worst happens
If you have been scammed, the United States government has compiled a list of ways to report fraud. First and foremost, you are the victim of a crime, so call your local law enforcement agency and report what has happened.
Educating yourself about the variety of scams and how to avoid them is the first step toward keeping your identity and your money safe. When in doubt, check www.usa.gov/scams-and-frauds.