Detecting Common Phone Scams (& How to Avoid Them)

“We collected more than 1.4 million fraud reports, and people said they lost money to the fraud in 25% of those reports. People reported losing $1.48 billion to fraud last year – an increase of 38% over 2017.” (FTC, 2019)

Scam artists do not discriminate against age, race, gender or socioeconomic status, so how do you go about recognizing them and defending yourself? Our number one piece of advice is to just say “No, thank you” and then hang up. However, if you are interested in learning more about some of the most common phone scams and how you can avoid them continue reading below. Interested in finding new ways to protect your identity? Check out our FREE online education courses.

Have you ever received a phone call like this? Saying you’ve just won some tropical vacation that includes a seven night stay while promising you the moon and the stars? Odds are, you’ve most likely been attacked by a phone scam-artist. If it sounds too good to be true, it most likely is. Be weary of great deals on travel packages, hotels, flights, etc. That “great deal” could turn into hundreds to thousands of dollars in hidden fees.

These are tricky. These are those times that you receive a phone call from an unrecognized number but it only rings once in hope that you will return the call. The caller may even leave a voicemail asking that you return the call because of reasons X, Y and Z. Although, this may seem innocent; the second you hit the redial button you’re setting yourself up to be scammed. The scam actually happens when you return the call. You will get automatically charged a connection fee due to it being an international call that might have been masked to look like a US number.

With tax season on the horizon, the number of phone calls that you are going to receive from the “IRS” are likely to go up. You may receive a call stating that you owe back on your taxes, and the caller will then attempt to steal your personal information by threatening you with some type of legal action. Whatever you do, do not give in. The more pushy the caller is the more likely it is a scam.

Hopefully this kind of phone call will automatically raise a red flag, but it may be more believable if the call is concerning a loved one or a family friend that is in trouble and needing money. It is in our human nature to stay out of trouble so you may be tempted to act quickly in these situations. However, do not wire money to anybody under any circumstances over the phone without first proving their identity. Understand that debt collectors do not have the power to arrest anybody. If you are truly concerned about legal action, hang up and call your local police station to get more information.

This one is geared more toward small business owners. First and foremost, you will never receive an unsolicited call from Google asking you to pay money to get your Google My Business (GMB) account set up. GMB is a free service that allows you to be easily found on the search engine. If someone claims to be from Google and asks that you send them money to get “verified” hang up, immediately. GMB has great resources to teach you how to identify scammers on Google My Business Help pages.

In the midst of a tragedy or natural disaster you can expect to receive phone calls from scammers that have set up fake organizations looking to take advantage of your generosity. Before agreeing to anything be sure to look into the organization to make sure that it is a legitimate charity, and don’t give into pressure when asked to donate right away. Contact the state consumer protection office or the Better Business Bureau before choosing to donate.

Have you ever received a voicemail from a robotic phone operator claiming that there are problems with your debit/credit card? These kinds of phone scams can even come as a well-designed text message that looks like it is coming from your bank. Popular banking scams include; overpayment scams, unsolicited check fraud, automatic withdraws and phishing. Hang up and call your banking establishment’s designated customer service number whenever asked to verify your banking details over the phone.

This may go without saying, but always be cautious when answering unrecognized phone numbers. If somebody really needs to get ahold of you they will leave a legitimate message. If you decide to answer, be sure to ask multiple questions and be patient. If the caller or telemarketer is trying to get you to make an immediate decision - rest assured that it is probably a scam. If the caller asks, “Can you hear me?” Don’t respond with “Yes.” This gives the scammer the opportunity to record your audible consent and then they can manipulate it and use it against you.

This is a free service that allows you to choose not to have your number put on telemarketers call lists. You can register both your home line and your mobile device.

Never offer personal or account information over the phone without verifying the caller’s identity. If you’re feeling suspicious, trust your instincts and hang up and initiate the call yourself by using a known number.

Some scams actually hack into your phone by downloading viruses so they are able to access your personal information, including your banking records. Set the phone to require a password to power on the handset or awake it from sleep mode. If it's lost or stolen any personal information stored on the device will be more difficult to access. Only download authorized apps and if you receive a suspicious text with a link refrain from clicking on the link. Treat your mobile device like your wallet and do everything you can to protect it.

You may be tempted to follow the prompt to be connected to a representative and ask to be put on their Do Not Call list, but please refrain. This will most likely actually lead to more robotic calls in the future. Just hang up.

You can do this online or by phone at 1-877-382-4357 to report suspicious calls. For a more-detailed list of common phone scams and ways to avoid them, visit www.usa.gov/common-scams-frauds.

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