Avoid being caught by money scammers

By Andrew Housser

With the growth of mobile phones, texting and live chatting, many home telephones do not ring very often. When they do, be wary of someone seeking to take advantage with a money scam or fraud. Here are some ways to recognize scam calls, and what to do to avoid being taken in.   

1. The IRS is probably not calling.
One common scam call involves a caller who claims to work for the Internal Revenue Service. These calls tell people that they owe back taxes and penalties. The caller may threaten arrest or suspension of a driver’s license, and may even know the last few digits of a Social Security number. These callers hope the alarmed recipient will panic and reveal Social Security numbers and other information scammers can use to access financial accounts. If you think you do owe back taxes, call the IRS at 1-800-829-1040 to resolve the issue. Otherwise, report the call (see below).

2. Microsoft does not have your number.
Another common scam has someone state that your computer has been compromised or infected with a virus. This scam plays on the fear of losing data or your whole computer. The caller says he is from tech support and asks for access to your computer. If you give in, you will lose exactly what you want to keep safe – the privacy of your computer. At least one-third of people use their computers to manage money, and these scammers want information to the financial information stored on computers.

3. Be aware a local number might not be local.
Using new technologies, callers can use a local exchange, even if they are calling from halfway around the world. Callers use this technique to deceive people into trusting them.

4. Do not rely on information provided by the caller.
A caller might direct you to a website that shows testimonials of so-called satisfied customers, or tell you his or her company is highly rated by the Better Business Bureau. Even if the product the caller is discussing if of interest to you, do not purchase or provide information over the phone. Instead, investigate independently and contact the company directly.

5. Be wary of “vacation trouble” scams.
These scams happen online, but also by phone. A person hacks someone’s Facebook account, or calls a grandparent, to say they have run into trouble away from home, and they need money to get out of a jam. The person asks the victim by pay by credit card or to wire money. (Wired or electronically debited bank funds are especially risky, because they do not offer any protections to the person who is defrauded.) Stay calm. Try to reach your loved one the way you normally do, or verify his or her whereabouts with other family members. If you truly suspect something is wrong, contact authorities.

6. Remember that something you pay for is not free.
Many callers try to entice people with the offer of a free vacation or other items. However, if you must pay to receive a free item, it is no longer free – it is a purchase. Do not let tempting offers lure you into buying something you do not want.

7. Eliminate many calls with the “do not call” list.
If your numbers are not on the national “do-not-call” registry, add them by calling 888-382-1222 or TTY 866-290-4326, or go to www.donotcall.gov. This will not stop every call, but it will help.

8. Do not pay in advance for loans or credit help.
Being asked to pay up front to be considered for a loan, a credit card or help with credit repair indicates something is not right. Before you provide personal data, get more information in writing or in person, from a reliable company.

These days, it is easier than ever for criminals to steal from unsuspecting people. The Internet can grant access to someone’s financial records from far away. Always be cautious with callers, and protect yourself first. If a scammer targets you, report the call via the Federal Trade Commission’s Complaint Assistant.

Andrew Housser is a co-founder and CEO of Bills.com, a free one-stop online portal where consumers can educate themselves about personal finance issues and compare financial products and services. He also is co-CEO of Freedom Financial Network, LLC providing comprehensive consumer credit advocacy and debt relief services. Housser holds a Master of Business Administration degree from Stanford University and Bachelor of Arts degree from Dartmouth College.