February 12, 2020
Top 10 Phone Scams of 2019
Phone scams cost U.S. consumers and businesses billions each year. Scammers use a variety of tactics and methods to prey on human emotions such as fear or panic. Increasingly, calls from scammers posing as the IRS, charities, or tech support even look legitimate. Spoofing tactics can mask the actual number of origin on caller ID, which harms both victims and legitimate organizations.
Scammers are gutsy when it comes to draining money from unsolicited victims. A retired Physician with Parkinson’s disease paid $90,000 to a fake tech support scam in one recent instance, and the theft wasn’t discovered until he passed away. Protecting yourself and your business from the next wave of scam calls should be a priority in 2020.
The Top 10 Phone Scams in 2019
1. IRS Phone Scam
Demands for an immediate tax payment by wire transfer or gift card are the most common sign of an IRS scam. Victims are threatened with jail time if they don’t pay up. Remember, the tax agency always notifies taxpayers first by letter, and IRS agents never demand same-day payment via debit card or wire transfer. Contact the IRS directly if you receive a suspicious call to clarify your tax status, and follow up by reporting any suspected phone scam to the FTC.
2. Social Security Scam
Social security scams were the single most common type of phone fraud reported to the FTC in 2019. Victims are generally coerced into making a payment by phone scammers who threaten arrest. In other cases, callers are told they need to settle a debt for over payments.
3. Tech Support Scam
Tech support scams convince victims they have a serious problem with their computer or smartphone. Scammers pose as a major tech company and use many tactics to convince victims they have a serious tech problem, including fake diagnostics tests.
Tech support scams stole $55 million in a recent year. While Senior citizens aren’t the only victims of this type of scam, they’re 5 times more likely to fall prey. Never be afraid to hang up on a suspected scammer and seek tech support from a trusted source.
4. Fake Charity
Scammers may use spoofed call numbers to pose as representatives of well-known nonprofits, like the Red Cross or Susan B. Komen who are running a fundraising drive. Never trust your caller ID and avoid pressure to donate over the phone if you’re suspicious. A legitimate charity will encourage potential donors to visit the website and donate online.
5. Lottery Scam
Lottery and sweepstakes scams swindled victims out of $118 million in a recent year, with an average individual loss of $530. Scammers pretend to notify victims they’ve won money or a vacation, and ask victims to pay a “small fee” to cover taxes or customs. Avoid paying any supposed fees without verifying details and be wary of suspicious mail about a lotto or sweepstakes. It could be a scam to build a list of potential victims.
6. Bank Fraud Scams
Don’t panic if you receive a robocall from your bank about suspicious account activity. It may be a scammer preying on feelings of fear or panic. The vast majority of financial institutions will never ask you to provide your account number or login info over the phone.
7. Debt Collection Scams
Debt collector scams account for 39% of complaints about collectors to the FTC. Scammers pose as professional debt collection agents or lawyers trying to collect a long-owed “phantom debt.” Debt scammers can be very persistent, and some win trust by showing victims they know personal details sourced from stolen data. Monitor your credit report carefully to avoid paying a fake debt.
8. Extended Car Warranties
Scammers use robocalls or voice calls to convince car owners to pay for extended warranties, sometimes winning trust by showing they know your car make or model. Be cautious about paying an unsolicited caller for coverage or avoid providing social security or drivers license numbers to random callers.
9. National Disasters
Scammers take advantage of natural disasters to target vulnerable consumers by posing as FEMA agents or other disaster relief personnel. Natural disaster victims need to be wary of phone calls from fake FEMA agents, especially if a caller asks for a payment for a home inspection.
10. Cable Bill Scams
Be wary of calls from your cable, phone, or internet service provider offering to lower your bill in exchange for a small payment. or cover a past-due bill. Chances are, it’s a spoofed call from a scammer.
How to Avoid Consumer Protection Scams
Scammers are relying on a combination of spoofed phone numbers, robocalls, and web popups to win the trust of victims. Become familiar with the FTC’s tips on avoiding phone scams. Remember, legitimate businesses, charities or government agencies will never threaten arrest or demand a same-day payment using scammy methods like a gift card or wire transfer.
How to Avoid Phone Scams Targeting Businesses
Businesses face unique risks if they fall victim to a phone scammer’s scheme, which can range from financial loss to damaged phone number reputation. Increasingly, business scammers use carefully-researched schemes, often posing as a vendor, client, or colleague or the victim. This type of scam is most often targeted at employees with access to money or sensitive data. Scammers may try to convince employees to pay a fake bill or email sensitive data.
If a scammer steals your phone number to place spoofed calls to victims, you face other risks. Your reputation and customers may be damaged if scammers pose as employees to demand payments. Even if scammers don’t call your customers, you could suffer from tied-up phone lines for hours or the reputational aftermath of a spoofed number.
How to Protect Your Business from Call Scams in 2020
Carriers now source data on phone number reputation from third-party call blocking apps. Having fallen victim to spoofing or scam activities can result in your phone number being flagged as untrustworthy and ruin your businesses voice communications campaigns. Protect your business against phone scammers in 2020 by monitoring your phone numbers for flags.
