Top 5 Phone Scams

Did you know that, according to Fraud.org, 40% of scams originate with a phone call and 30% with an email? Sixty percent of scams involve a caller impersonating a representative of a government agency or financial institution. Scam artists often try to present themselves as authority figures who can make your life somehow better or easier, and may become more pushy and aggressive when you resist.

1. Credit Card Interest Rate Reduction Scams: The caller promises interest rate reductions, but first requires the victim to pay an upfront fee and disclose personal information to complete the transaction. They urge you to act now, as lower interest rates are available for only a limited time. Some even promise money-back guarantees. The FTC’s Telemarketing Sales Rule prohibits companies that sell relief services from charging a fee before they settle or reduce their debt. The Federal Trade Commission also warns against giving out your credit card information to callers. The “FTC investigators found that people who pay for these services don’t get the touted interest rate reductions, don’t save the promised amounts, don’t pay off their credit card debt three to five times faster, and struggle to get refunds.” In fact, you can call your credit card company yourself for free and ask for a rate reduction.  If the credit card company won’t budge, shop for a new card, apply for a bill consolidation loan from your bank or credit union, or seek the help of a nonprofit consumer credit counseling agency.  If you think you’ve experienced a credit card interest rate reduction scam phone call, file a complaint with the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357).
2. Home Security Systems:  The caller offers a free home security system and tries to frighten the victim into action by mentioning a rash of local burglaries. Sometimes, they may use the name of a well-known security company and try to manipulate you by giving them access to your personal information or even your home. Or the call may be from an unscrupulous company trying to lure you into a contract with expensive long-term monitoring fees or costs. Never take a cold-caller at face value; stay skeptical. If you are interested in a new security system, don’t give out information over the phone. Ask for their name, company name, and phone number. Check the company out online, then call and ask if the person is really an employee. This same warning applies to someone visiting your home claiming to represent a security system company; do not let them into your home.
3. Spam Text Messages: The text message will use promises of prizes or gifts or product offers, like cheap mortgages, to get you to click on a link,  call a specific number, or go to a certain website to win a prize.  When you go to claim the prize, you will need to give up personal information. Clicking a link in the message can install malware on your phone that, with your knowledge, will collect your personal information. Visiting the website on your computer can install malware and achieve the same result. Once the scammer has your information, it can be sold to identity thieves. Forward all spam text messages to 7726 (SPAM) to report them.
4. Free Cruises: This scam involves calls or texts offering a free cruise. The victim is then pressured into disclosing credit card information to pay for the taxes and fees.
5. Microsoft Tech Support: The caller claims to be from Microsoft Tech Support and says your computer is infected with a virus. The scammer requests remote access to your computer to “fix” the problem, then installs malware to steal your information. The caller will then charge you for their service.