Don't Click Here! How to Avoid Scams
Every year the number of people that fall victim to scams increases. The Federal Trade Commission reports that 2.6 million consumers were victims of a scam with losses over $10 billion in 2023 and that went up 25% to $12.5 billion in 2024.
We've talked before about how seniors can be especially vulnerable to scams, and have provided some guidance on how to avoid death-related scams as well as spotting the signs of a home contracting scam. But we also thought it would be useful to share some basic tips on how to avoid scams as a whole.
Avoid Scams with these simple precautions
Be careful of the links you click on
Phishing is one of the frequent cyber threats, with an estimated 3.4 billion malicious emails sent per day. Clicking on links from phishing emails can expose your information to scammers, which may result in identity theft or financial loss.
While email is the most common source of malicious links, they can also appear in social media posts or text messages.
To avoid scams, take a careful look at:
The source of the link: Is it from a trusted source or an unknown entity?
The spelling on name/domain: Scammers love to use false domains such as wellfsargo.com of wellsfargo.com.
Did you notice the difference? At first glance they seem the same, but in the first example the f and s are flipped.
Be mindful of who you give your information to
Phone scams are a common method of fraud for seniors, as the caller will state they are from a trusted source like a bank, credit card company, or IRS. The scammer often says there's a problem with your account and they need to collect some information from you to verify your account and help you.
Unfortunately giving them that information will very likely lead to identity fraud, because neither financial institutions nor government agencies will contact you by phone.
If you are ever in doubt of the legitimacy of the caller, you can avoid a scam by hanging up the phone and going to the organization's official website. Use the phone number on the website to call and verify if there is any concerns related to your account.
Stay calm and give yourself time
Scammers will frequently indicate that you have to act immediately to:
Avoid a penalty
Collect some kind of prize
Take advantage of a special offer
Many people get so caught up in the excitement, or fear, that they don't stop to consider if what's being asked of them is reasonable. You can avoid scams by giving yourself time to look into the matter.
Ask for the caller's name, phone number, company, and website. If they won't provide all of that information, it's a red flag that something is wrong.
If you do get the information, do a little research as an internet search may surface fraud warnings from others. Even if you don't find fraud warnings, it may be a good idea to call the official number on the company website and verify the information you received.
Keep an eye on your accounts
Our final tip for avoiding fraud and financial loss is to regularly monitor the charges on your credit cards and bank account activity. Even if you have everything set up on autopay, make a point to review your account activity at least once a month to ensure everything is legitimate.
If you, or a senior loved one, could use some help keeping up with that kind of monitoring, consider engaging a daily money manager for help.