Don’t Get Scammed: Spot the Signs and Stay Protected

As financial scams become more sophisticated, Americans are losing more than just money; they’re losing peace of mind. In 2024 alone, reported fraud losses hit a staggering $12.5 billion, according to the Federal Trade Commission (FTC). The good news? Recognizing the warning signs and building a few safe habits can go a long way in keeping your identity and savings secure.

Here’s what to know and what to do.

Four Common Signs of a Scam

Scammers are experts at creating urgency, fear, or excitement to get you to act before you think. No matter the method, most scams follow the same playbook:

1. They Pretend to Be Someone You Trust
   Scammers often claim to be from well-known organizations like Medicare, the IRS, or even your utility company. They may use a fake caller ID or email address that looks legitimate.
2. They Create a Problem or Offer a Prize
   The scammer might say there’s been suspicious activity on your account. Or they claim you’ve won a sweepstakes; but before you can collect your prize, you’re asked to pay a fee. These are both major red flags.
3. They Pressure You to Act Fast
   They may say, “Don’t hang up,” or warn that failing to act immediately could lead to legal trouble, fines, or even arrest. This urgency is designed to override your instincts.
4. They Ask for Unusual Forms of Payment
   Any request to pay with gift cards, cryptocurrency, wire transfers, or payment apps (like Venmo or Zelle) should raise an eyebrow. Legitimate organizations don’t operate this way.

Five Ways to Outsmart the Scammers

1. Don’t Click Before You Check
   Phishing scams often arrive by email or text, disguised as official messages from banks, retailers, or government agencies. Before clicking, hover over links to preview the URL, or better yet, go directly to the official website.
2. Turn On Two-Factor Authentication (2FA)
   Even if someone gets your password, 2FA adds an extra layer of protection. It’s usually a one-time code sent to your phone or generated by an app like Google Authenticator. Enable it on your email, bank, and social media accounts.
3. Keep Devices and Software Up to Date
   Scammers exploit outdated phones, browsers, and apps. Turn on automatic updates and consider running antivirus software to block threats before they do damage.
4. Talk Before You Act
   If something feels off, pause and call a trusted friend, family member, or even your financial advisor. A second opinion can be the quickest way to avoid a mistake.
5. Monitor Your Credit and Freeze It If Needed
   Identity theft often shows up in your credit report. Use services like Credit Karma or Experian to monitor activity and consider freezing your credit if you notice anything suspicious.

Real-World Scam Examples to Watch Out For

• “Grandparent” Scam: A caller says your grandchild is in trouble and needs money right away. They may even know your grandchild’s name, their hometown, school, or any number of personal details from social media.
• Fake Tech Support: You get a call or pop-up saying there’s a virus on your computer, and you’re asked to give remote access or pay for “repairs.”
• Lottery Scam: You’ve “won” a big prize but need to pay taxes or fees first. Remember: if you didn’t enter, you didn’t win.
• Fake Investment Offers: Scammers may pose as financial advisors or offer “guaranteed” returns, especially on cryptocurrency.
• Romance Scams: Someone builds a relationship online and eventually asks for money, often claiming an emergency.

Stay Safe, Stay Informed

Falling for a scam doesn’t mean you’re gullible — it just means you’re human. Scammers are becoming more sophisticated every year, but staying alert and adopting a few digital safety habits can make all the difference.

If you suspect a scam or fall victim to one, report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.

Have Questions? We’re Here to Help

If you ever receive a suspicious message, phone call, or email — especially one involving your finances — we encourage you to call our office before taking any action. We’re happy to help you verify whether something is legitimate and guide you in the right direction.

Your financial well-being and peace of mind are always our top priority.

Presented by Chaunté Stallworth, FPQP^®