If you’re worried about being scammed, it’s not because you’re paranoid. Scammers are the zombie apocalypse of the financial world. They’re relentless, they seem to be everywhere, and even if you think you’ve taken every precaution, you still have to be on your guard. 

Scammers aren’t some unstoppable force, though. You can take several steps to protect yourself against them, and one of the most important steps is to learn about some of the most common scams. 

That’s where this blog comes in. By the time you’ve finished reading this blog, you’ll have learned about the seven most common frauds scammers use to get money from unsuspecting victims. You’ll also learn about the best ways you can spot these scams, so you’re better able to avoid one when you see it. 

Here's how to Protect Yourself From 7 of the Most Common Scams

Phishing Scams

Phishing scams try to trick people into revealing sensitive information. Scammers will try to do this by sending emails that impersonate legitimate organizations, like banks or companies. If you’ve ever gotten an email that claims your Amazon or PayPal account will be shut down unless you fix it right now, you might have encountered a phishing scam. 

How to protect yourself against phishing scams: 

• Don’t click on any suspicious links or provide personal information via an email or a text
• If you get a request to verify your personal information from a bank or company, visit the legitimate website instead
• Report any phishing emails to the authorities

Deceptive Lottery Scams

Everyone loves winning money, and scammers prey on this by letting potential victims know they might have won a jackpot. Before you can claim your prize, though, you need to supply them with some personal information or pay a “processing fee” to get your prize.

How to protect yourself against lottery scams:

• Never make an upfront payment for a prize
• Avoid giving out any personal information
• Ask for information about the prize and where you signed up

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Recognizing Tech Support Scams

If you’ve ever had a pop-up window open up on a website letting you know you have serious computer issues, you’ve encountered a tech support scam. If you click on the ad or call the number, a scammer impersonating a tech support representative will try to gain remote access to your computer, and from there they can go through your personal information and potentially even lock you out of your computer. 

How to protect yourself from tech support scams:

• Never grant remote access to your computer unless you are absolutely sure of the other person’s identity
• Don’t click on any pop-up ads letting you know your computer has problems
• Ignore any unsolicited calls regarding your computer’s performance
• Don't let callers pressure you into any actions you're not comfortable with

Unraveling Romance Scams

A romance scammer will try to get you to fall for them, then use your feelings to manipulate you into buying them gifts or sending you money. 

How to protect yourself against romance scams: 

• Don’t send money to anyone you haven’t physically met
• Avoid sharing personal information, like your Social Security number, bank account numbers or your credit card number
• Limit how much personal information you share on dating sites

The Trap of IRS and Tax-Related Scams

Tax season is stressful for most people, and scammers use that to their advantage. They like to pretend to be from the IRS or be a tax professional, and try to trick you into revealing personal information. Scammers might even try to demand you pay money or risk getting arrested! 

How to protect yourself against tax-related scams: 

• Contact a trusted CPA to verify the information you’ve received
• Make sure you're talking with an official government organization by searching for them on Google and visiting their website
• Remember that actual government agencies will not make payment demands or threaten legal action over the phone
• Report suspected tax scams to the proper authorities

Evading Employment Fraud

Employment scams target job seekers with fake job offers on classified job boards or social media, promising high salaries or work-from-home opportunities. The catch? You have to make payments for either your application or training materials first. 

How to protect yourself from employment fraud: 

• Get proof of a prospective employer’s legitimacy through an independent site, like LinkedIn or Glassdoor
• Never pay money for a company to hire you
• Report any suspicious job postings to the job board

The Risk of Fake Check Scams

If you get a check addressed to you that you don’t remember requesting, you might be encountering a fake check scam. Scammers love to send these checks to victims, then ask them to deposit the check and send them part of that money back. 

How to protect yourself from fake check scams:

• Never cash a check from an unknown or untrusted source
• Consult your bank to verify the authenticity of any received checks
• Be cautious of offers that require you to send money shortly after receiving a check

In 2023, some of the most common scams to be aware of include phishing emails and text messages, fake tech support calls, romance scams, identity theft, investment fraud, and fake charity scams. Stay informed and vigilant to protect yourself from falling victim to these scams.

What Should I do if I've Fallen for a Scam?

While the best way to safeguard yourself from scams and frauds is to know how they try to trick you into giving them information or money, you should also know what to do if you’ve been scammed. This can minimize the damage and help you recover that much faster. 

Immediate actions to take once you realize you've been scammed

Once you realize you've been scammed, immediately stop all contact with the scammer. Next, report any fraudulent transactions to your bank or credit card company. If you suspect you've been the victim of identity theft, you might even want to freeze your accounts.

You should also alert your friends and family members about the scam. This will help them protect themselves in case the scammer tries to reach out to them using your information.

Reporting the scam to the authorities

You’ll also want to alert the proper authorities about the scam. These can include:

• Credit unions or banks
• Local law enforcement
• The Federal Trade Commission (FTC)

This can be the hardest part of dealing with scams. No one wants to admit they’ve been taken advantage of or tricked. However, the sooner you reach out to the authorities, the better chance you’ll have of minimizing the damage the scammers have done to you. 

How to repair your credit score after a scam

Losing money to a scammer can be bad enough. If a scammer steals your identity, though, they can wreak havoc on your checking accounts, saving accounts and most importantly your credit score. If you've been the victim of identity theft, you'll need to take some additional steps to rebuild your credit.

Your first step should be to prevent anyone from opening an account in your name. You can do this by contacting the three credit union bureaus and having them freeze your accounts.

While you're contacting the credit bureaus, you can also have them place a fraud alert on your account. This lasts for one year, and when lenders see it they will take extra steps to verify your identity before opening an account in your name.

Contact the Social Security Administration and let them know your number has been used to commit fraud.

Once you're done with that, update the passwords on everything, from your online bank accounts to your utility bills to your email accounts. Set up 2-factor identification where possible to make it harder for scammers to access your information.

File an official identity theft report at IdentityTheft.gov. You need to do this in order to repair your credit.

Get a copy of your credit reports and check them for signs of identity theft, such as:

• Different personal information, such as a wrong address or seeing your name misspelled
• Accounts you don't remember opening
• Credit cards you don't remember using
• An increase in the amount of debt you owe
• Bankruptcy declarations

Dispute any incorrect information on your credit report. You'll need to contact each of the three credit bureaus an explain that you've been the victim of identity theft. You'll also need to let them know which information on your report is due to scammer activity and what you would like blocked.

Close any accounts opened in your name. Contact the institutions that hold these fraudulent accounts, let them know you've had your identity stolen and to close the accounts as soon as possible.

If you're receiving notices from debt collection agencies, let them know that someone stole your identity and to stop reporting the debt to the credit bureaus.

Monitor your credit reports constantly for the next year or so to make sure that scammers aren't trying to use the information you stole.

You might think this is a lot of work, and unfortunately, you'd be right. Recovering from identity theft can be a lot of work. The good news, though, is that once you've taken these steps, you'll start to see your credit score improve.

Need help protecting yourself from the hordes of scammers online? Ask us! 

Protect Yourself From Scammers With First Alliance Credit Union 

Scammers seem like they can be lurking behind every URL and envelope, but you can safeguard yourself against scams and frauds. When you know some of the most common types of scams criminals use, you’ll be less likely to fall for them. If you are victim of a scam, though, you should act quickly and know who to contact in order to keep the damage they’ve done to a minimum. 

You can also get help protecting yourself against scams by becoming a member of First Alliance Credit Union. We offer several services to help protect yourself against scammers, including the My Cards feature on our mobile app, which lets you control where and when your debit card is used. You can even limit how much you can charge per transaction, and turn it off entirely if you suspect someone has gotten their hands on your information. 

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