Chances are, everyone reading this will know at least one person who has been a victim of identity theft or has lost money to a scam. It’s devastating to deal with this sort of theft after having worked hard for every dollar you make. And it’s becoming increasingly difficult to stay updated on all the scams out there and to know what to look out for, because identity theft is evolving into a high-tech industry. Scammers are using Artificial Intelligence (AI) and advanced psychological tactics to create convincing frauds. The best thing you can do is develop a proactive defense strategy by becoming aware of common attempts by scammers.
Some of the scams out there right now include:
The call or text from your bank: Scammers can now use AI voice cloning to impersonate someone from the bank who claims your account has been compromised. There is always some sort of urgency during the call, so you feel rushed as you’re trying to avert a crisis and don’t have time to think. This makes it likely that when the scammer asks for sensitive information, you aren’t as wary as you would ordinarily be. Generally, if you receive a call or text from your bank or any financial institution demanding immediate action or a “verification code,” hang up. Call your bank directly using the number on the back or your credit or debit card or use a search engine to find the number of your bank – but ensure you are really calling your bank and not just the first result that shows up.
Brand impersonation/brand hijacking: This happens when scammers use a search engine’s advertising system to deceive people by posing as a reputable company. Aside from deliberately misleading someone so they call the scammers instead of the company they intend to reach, there are other scams they could be working on, such as “affiliate hijacking”. This happens when scammers bid on a legitimate brand’s keywords to intercept traffic and earn unearned referral commissions, often by mimicking the brand’s official ad copy. Or they could be engaging in MasquerAds – these are sophisticated brand impersonation ads that use techniques like “cloaking” to hide malicious content from Google’s automated reviews while showing it to real users.
How it works is, scammers pay to bid on a popular brand’s name or high-intent keywords (such as “X company customer service” or “X company login”). Then they make ads that use the official brand’s logo, colors, and tone so that they look legitimate at the top of search results. When you click on this scam ad, you are directed to a spoofed website that looks identical to the real one, which lets the scammers then steal login credentials, payment details, or distribute malware.
The best way to protect yourself against this sort of brand impersonation is to bookmark official sites that you use frequently. Before entering sensitive information, always verify the destination URL before entering sensitive information. You can also report fraudulent ads to the Federal Trade Commission at https://reportfraud.ftc.gov/
The fake job offer: scammers now use AI-driven tools to target job seekers through fake offers. If it seems too good to be true, it usually is. Remote jobs which are highly paid and require little experience often turn out to be a way for scammers to steal your identity. Don’t share your Social Security Number (SSN) with a job interviewer, unless it is after a verified, in-person, or video interview.
You should also never pay upfront fees for training or equipment for any prospective job. Any reputable company will take on the expense of training you themselves.
The desperate request for money from a loved one in trouble: this takes place when scammers are able to clone the voice of a child/grandchild/loved one, using just a few seconds of audio from social media. The victim thinks they are receiving a panicked call from their relative or close friend, claiming they have been injured or arrested. They then ask the victim to immediately send money for medical bills or bail or some other urgent need. The voice on the other end of the phone line sounds very similar to that of your relative or loved one.
Planning ahead, you can decide with your family members on a password or a safe word, so you can verify their identity in emergencies.
Recovery/ Refund Scams
These scams are the worst because they target people who have already been scammed.
- The scammers pretend to be lawyers, consumer advocates or government agencies and promise they will help the victim get back the money they have lost in exchange for an upfront “recovery fee”.
- Refund Phishing is when scammers make small, random charges on your card (99 cents at Wawa, for example). Then, when you call the number on the credit card statement to dispute it, you are actually calling the scammer, who somehow tricks you into telling them the full details about your account.
Smishing
This scam is probably the one you see everywhere. You get a text about an unpaid toll charge (usually from a fake E-Z pass or other local highway program), a shipping problem, or fine with a UPS, Fed Ex or USPS package which you didn’t even order. When you click on the link, you land on a site which has been set up to harvest your credit card information.
The best way to protect yourself from this scam is to check directly with official toll sites or delivery apps and to NEVER click links sent in texts.
Ghost Broking and Car Scams
Scammers sell fake insurance policies (this is ghost broking) or cars that don’t actually exist, on platforms like Facebook Marketplace. You are pressured to send in a deposit through wire transfer or crypto and don’t get to see the car in person.
Red flags to look out for are sellers who refuse to meet in person or give you a VIN number which you can verify online.
Here are some basic but useful ways to defend yourself from some of the scams going around:
- Freeze your credit. This is free and will prevent anyone from opening new accounts in your name. When you actually need to apply for a credit card or loan, you can unfreeze your credit in minutes.
- Don’t reuse passwords. You can easily find free password managers online to create and keep track or unique and complex passwords. Also make sure to enable Multifactor Authentication (MFA) for an added level of security. Ideally, you should use an authenticator app rather than just text codes, which are easier to hack.
- Check your bank account weekly using your bank’s app. You can also get free weekly credit reports at AnnualCreditReport.com which will help you spot suspicious activity early.
In a worst-case-scenario in which you think your identity has been stolen, go online and use the FTC’s Identity Theft Reporting Tool to work out a recovery plan.
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