Even though they may sound outdated, phone scams still run rampant. The US Treasury inspector general receives between 9,000-12,000 complaints per week. According to Princeton Research Survey Associates, "People over 50 are disproportionately victimized by telephone fraud." Make sure you and your loved ones know how to identify and avoid the most common telephone scams—like these.
Watch Out for Fake Fundraisers and Charities
Every so often, you might get a cold call asking you to contribute to a fundraiser campaign for a local organization. Beware: this could be a scam. Once they obtain your financial information, the fraudster will take your funds and keep it all for themselves.
For example, recently in New Jersey, fraudsters disguised themselves as the local police department. Local law enforcement sent out an alert, writing to citizens: "Despite what telemarketers will tell you, your West Long Branch Police Department does not derive a benefit from telephone donation calls."
There's a simple solution to this. If you're set on contributing, hang up and call the official line for the local organization they claim to be a part of. It's a bit clumsier, but it minimizes your chances of getting scammed. As the FBI recommends, you could also request written material about any charity (which could still be fake) before you donate.
You'll want to find the official web site and phone number, because the fraudster might leave you with a fake organization name (or a name that is similar to an official one with one or two changed words) and a fake number. And by the way: if you want to stop receiving calls with computerized voices, hang up immediately.
The IRS advises against ever sharing personal financial information, such as Social Security numbers or passwords, to anyone who solicits a charitable contribution from you. Whenever possible, contribute by check, credit card, or another method that provides documentation of the gift.
Don't Get Intimidated by Fake IRS Calls
Con artists are masters of emotional manipulation. They push buttons—adding fear, or a sense of urgency—to get you to take action without thinking about it. And what do many people fear most? The tax man, of course.
Recently, scammers have been calling people pretending to be the IRS to warn them that this was their final notice to report their taxes. The scammers might also "warn" the listener, threatening to deport them or to take them to jail if they don't act quickly. For an unsuspecting person, this threat could overwhelm any skepticism they might have had about the call. That fear leads straight to the impulsive action that the fraudster wanted.
IRS Commissioner John Koskinen says in this announcement from the IRS:
If someone calls unexpectedly claiming to be from the IRS with aggressive threats if you don't pay immediately, it's a scam artist calling. The first IRS contact with taxpayers is usually through the mail. Taxpayers have rights, and this is not how we do business.
The IRS will not use email, text messages or any social media to get in touch with you, either.
You can listen to an automated scam call here to get an idea of how one of these calls sound. Even though it sounds official, you have to remind yourself that it's fake. Don't let them catch you off guard. If you want to confirm that you don't owe taxes, call the IRS at 1-800-829-1040. Their workers can help you with a payment issue.
Keep Your Eyes Peeled for Tech Support Scams
If you ever get a call from a technology service asking you to confirm your information or to help you install an update, tell them you'll call back. Fraudsters can easily impersonate technology support staff and sound official. For example, Fraudsters have frequently impersonated Microsoft technology staff in order to con people into sharing control of their computer. (Here's an example of how a call would look, and here are the steps fraudsters usually take.)
Daniel Williams, a member of the Canadian Anti-Fraud Centre, advises in this article, "What we want consumers to know is, if your phone rings and somebody wants to fix your computer, it's a scam."
These con artists are capable of spoofing official caller ID numbers, so you have to ignore that fake legitimacy. Never follow the phone numbers or URLs that they share with you. If you really want to make sure there's no issue, hang up and find your company's official support line and call them.
Unfortunately, there's no one app or technique to keep you safe. The most effective way to protect yourself from telephone tech support scams is to obtain more information, hang up the call without taking action, and verify it. As Microsoft recommends, when you're on the phone with a "tech support" rep who called you, never purchase any software or services. Never share control of your computer. Never provide financial information to someone claiming to be from tech support. Take the caller's information down so that you can immediately report it to your local authorities in case you discover that it's a scammer after the call.
On a related note, fraudsters don't just restrict themselves to technology support staff. They could also easily impersonate someone else, like a financial services representative. Keep your eyes and ears peeled, and be suspicious of incoming calls from services.
How to Minimize Incoming Scam Calls
The simplest way to minimize your exposure to scam calls is to monitor your incoming calls carefully. Start by not picking up calls from unknown numbers. If the information is important or urgent, callers will probably leave a voicemail or find another way to contact you. You could also Google the number as your phone rings, as other people may have logged complaints in communities like 800Notes, Caller Complaints, and WhoCalledUs.
Don't feel obligated to call strange numbers back, especially if they hang up after one ring. As the Better Business Bureau highlights, it could be a scam designed to bill victims for international calls, but also an unwanted premium service (typically a $19.95 charge).
You've probably heard of the Do Not Call list, and while we recommend putting your number on it, it probably won't help much here. Only law-abiding organizations follow the DNC list—and scammers don't play by the rules. They're also often calling with area codes from countries outside of North America, including India, China, and Russia.
If fraudsters are calling you on your cell phone, you can use Trapcall (which we'd previously mentioned here) to track their blocked numbers. Unfortunately, the service does not work with landlines yet. Although Trapcall can unmask blocked numbers, it can't provide the real number behind fake caller ID spoofs.
Caller ID spoofing can be difficult to track, but you can do it with the help of your telephone service provider. They might move on your request slowly (since it costs them engineering hours), but will be required to provide information with a subpoena from a local law enforcement company. If you're curious about the technical explanation why you'd need the provider's help, have a look at this thread on Stack Exchange.
What to Do If You (or Someone You Know) Gets Scammed
If you ever do end up as a victim of a scam, create an identity theft report with the FTC. Filing a report or complaint with the FTC might not produce instant results, but they will add your information to investigations, which eventually bear fruit. We'd previously looked at five steps to immediately take once you've been scammed. We'd also shared steps to get rid of telemarketers, some of which you may be able to use to get rid of scammers as well (just remember, they don't play by the rules!).
Prepare yourself to have an unpleasant call. As you may see from the sample calls above, if you confront them, scammers may curse at you or threaten you. Don't let their intimidation bother you.
You Never Get Something for Nothing
Remember, con artists prey on your emotions, specifically your fear, generosity, or greed. These emotions can blind you to the warning signs that you otherwise may have noticed. Keep your ears vigilant when you're on the phone, and your eyes open to other scams that happen offline.
Photos by StudioZ, Zelfit, 401(K) 2012, MoneyBlogNewz, and State Farm.