Fraud Trends to Watch
Fraudsters and scammers are ever evolving and deceptively clever in their attempts to obtain your money and personal information. The FBI's Internet Crime Complaint Center has released its 2023 report on cyber-crime, looking at online scams affecting people. In Maine, total losses were just under $19 million with more than 1,600 people falling victim.
Types of Scams
This occurs when a scammer impersonates someone else, such as a government official, police officer, credit union or bank employee, friend, or family member, with the goal of obtaining your money or personal information. Always verify the identity of the person contacting you. To avoid phone spoofing, hang up and call the person back directly. Your credit union will not call you to request online banking information, passwords, Social Security numbers, addresses, phone numbers, or other private personal information.
Never send money to someone you don't know. If you're asked to make a payment via wire transfer, prepaid card, or cryptocurrency, do not proceed. These payment methods are nearly untraceable, and once the money is sent, it's usually lost permanently.
A prize or gift card scam is a type of fraud where scammers contact individuals claiming they have won a prize, lottery, or sweepstakes. To claim the prize, the victim is asked to pay fees or taxes upfront, often through gift cards. The scammer instructs the victim to purchase gift cards and provide the card numbers and PINs. Once the scammers obtain this information, they quickly drain the funds from the gift cards, and the victim never receives the promised prize.
If you're selling something, do not accept a check for more than the asking price. Scammers may overpay and then request you to send back the difference they "mistakenly" overpaid. Eventually, the check will bounce, and you'll lose both the money and the item you sold.
Scammers create fake profiles on dating sites, social media, or other online platforms to deceive victims into forming romantic relationships. Once they gain the victim's trust and affection, they fabricate stories of personal crises, financial difficulties, or urgent needs, manipulating the victim into sending money or providing financial assistance. The scammer's ultimate goal is to exploit the victim's emotions for financial gain, often leaving the victim heartbroken and financially harmed.
Avoid paying upfront fees to companies that claim they can settle or eliminate your debts. Scammers often promise to negotiate with creditors to reduce your debt significantly or eliminate it entirely. They charge a fee in advance but fail to fulfill their promises, leaving you in a worse financial position without any real debt relief.
Reporting Scams
In the United States, you can report fraud and scams to the Federal Trade Commission (FTC), which collects data on deceitful activities to identity trends and patterns. You can file to report by visiting the FTC’s website or by calling 1-877-FTC-HELP (382-4357).
Contact your local police department or law enforcement agency and file a report. Provide them with all the evidence you have gathered. Even if they might not be able to investigate every case, reporting the incident can help build a case against the scammer or fraudster by identifying patterns of criminal activity.
If your information was stolen, such as your Social Security number, credit card, account details, or other personally identifiable information, go to IdentityTheft.gov. On this website, you can report what happened, obtain a recovery plan, and receive guidance through each recovery step.
