As scammers become savvier, it's crucial to take action to protect yourself. Scammers may contact you directly via email, phone, text, social media or postal mail. They may steal your identity and open accounts in your name without your permission or knowledge. Scammers may try to convince you that they are in a position of authority or are from your bank or another financial institution in an attempt to get you to hand over your account credentials.
The first step to avoiding most scams is to never provide personally-identifying information to anyone over the phone. Your banker will not call you and ask for your account login and password. They won't contact you to get your social security number or date of birth, either.
In some cases, scammers may get your personal information via an internet security breach. If a company's database is hacked, your personal information may end up in the wrong hands. For this reason, it's important to use secure passwords and if possible, take advantage of two-factor authentication that allows a legitimate website to text your phone with a special code to help prevent scams, or to at least make them less unlikely.
Where Do You Report Scams and Fraud?
If you suspect you or someone you know is the victim of a scam or fraud, start by contacting your bank.
Many banks and credit unions have identity theft resources to help members and account holders at no cost. At Boston Firefighters Credit Union, we offer NXG Identity Theft protection and recovery as part of our checking account services at no cost to our members.
If you need to report a case of fraud or a scam, collect as much paperwork as possible related to your situation. Receipts, phone numbers, and your written account of the events will help investigators access the information they need to move forward.
You can start by reporting fraud or a scam to the financial institution involved. If money was stolen from your account or someone made a withdrawal without your permission, let the bank or credit union know immediately. They can help you communicate with local police, if necessary.
You can also report scams to your state consumer protection office as well as the federal government. While the federal government may not be of much help as you attempt to recover your money or property, they actively track scams and will add your report to their database in an attempt to warn others.
If you've experienced disaster-related fraud, you can call 866-720-5721 to make a report. You can also report scams to the Federal Trade Commission (FTC) by calling 1-877-382-4357 (9:00 AM - 8:00 PM, ET).
The FTC keeps a log of emerging scams, including:
Email
Phone calls
Imposters
Computer support scams
Fake checks
Demands of a wire transfer, check, or gift cards
Sweepstakes offers
Prizes
Grants or loans
IRS or social security imposter scams are common and may involve robocalls, threats of arrest or lawsuits, demands of immediate payment and claims that your social security number has been suspended or canceled.
You can report social security imposters by calling 1-800-269-0271 (10:00 AM - 4:00 PM, ET).
Third-party scams may happen when you make a purchase online. These situations should be reported to the financial institution that issued the card you used to make the purchase. You may also want to place a fraud alert on your credit report to prevent unauthorized accounts from appearing in your name.
If you suspect tax fraud, which has become more common in the past few years, contact your state's tax authority and the Internal Revenue Service (IRS) directly. The IRS provides consumers with a Whistleblower Informant Award for reports of legitimate fraud. If you think someone may have stolen your social security number to get a tax refund, it's important to make contact with the IRS right away by calling 1-800-366-4484.
How to Avoid a Scam
To help prevent scams, never give your personal information to anyone over the phone or via email. If you are concerned that the caller is legitimately calling from a financial institution, hang up and call the bank or credit union directly. If the call was real, they can verify it and put your mind at ease.
Anyone can get caught up in a scam, and the financial loss can be devastating, as well as the feeling that you should have known better. Scammers often use technologically advanced tactics and can be very convincing, however.
Scams may include:
An offer that seems too good to be true
Request to share your login credentials, like your password or PIN
Prize awards that require you to send money to claim winningsOffers with a time limit that push you to act quickly
Odd phone numbers, such as those that begin with 090
Phone calls that lead you to say "YES" clearly
Any offer that you aren't supposed to tell friends and family about
Unfortunately, if you use a computer and have a phone, scammers probably have access to some of your information. If you don't know the caller, it's wise to just hang up. Your credit union or bank representative can offer assistance if you aren't sure if you're dealing with a scammer, so lean on them for support.
