Thousands of people are bilked every year by criminals who enter the lives of their victims through their telephones. According to the AARP, about half of all mobile calls are now fraudulent and that statistic is only getting worse. Fraudulent landline calls are declining as the technology fades, but scam calls to fixed lines still nab plenty of unsuspecting victims. And while seniors are often the target of scammers, the reality is that anyone can be taken for a ride if they're not careful. Here's everything you need to know about phone scams, how to avoid becoming a victim, and what to do if you are targeted.Related: The Worst Financial Scams and Scandals of 2018
BE AWARE OF THE LATEST THREATS
Like any other fraud, phone scams evolve and change out of necessity once the public gets wise to the scam. This means there's always a new scam on the horizon or an updated version of an old one. Here's a look at some of the most current phone scams, according to data from the Federal Trade Commission's (FTC's) Bureau of Consumer Protection and information provided by Justin Lavelle, CCO of BeenVerified.com, an online background check platform.
Imposter scams come in many forms and target a broad range of victim demographics. They all, however, work the same way. A scammer purporting to be someone you know or a representative from an organization you trust tries to trick you into giving them money in a phone-based scam.
IRS IMPOSTER SCAMS
The now-common IRS phone scam, one of the most prevalent and anxiety-inducing imposter scams of them all, is especially common around tax season. "When the call is answered," Lavelle says, "the scammer says the IRS is suing you and you owe them money and [they] threaten to send the police if not paid within an hour. The latest phone scam even includes caller ID showing the letters 'IRS' when they call. The key to avoiding being hit by these scams is to know that the IRS does not make threatening phone calls nor do they request wire transfers over the phone."
FTC data backs up that statement and also cautions against ever paying a tax bill with a pre-paid debit card, which the IRS would never request.
DEBT COLLECTOR SCAMS
Just as the name implies, this scam involves a con artist pretending to represent a collection agency offering a dramatic discount on a debt you didn't incur, which is often accompanied by a threat to call law enforcement if you refuse. Always refuse to pay a debt without a legally required "validation notice," as well as the name of the creditor, amount of the debt, and the caller's name, address, and phone number.
GRANDCHILD IMPOSTER SCAM
As the name implies, the grandchild scam preys on the elderly, with the con artist calling the victim and posing as a grandchild who has fallen into a desperate situation like running out of money or encountering legal trouble while traveling.
"The scammer will then ask for money to be wired to a foreign address and then completely disappear once the money is received," Lavelle says. "If you receive a call like this, always reach out to your grandchild's phone number or talk to others who can clarify whether the grandchild really is in trouble and needs help."
OTHER IMPOSTER SCAMS
IRS, debt collector, and grandchild scams are currently among the biggest threats, but the FTC also warns of several closely related imposter scams. Family emergency scams expand the grandchild scam to any family member. Online dating scams prey on people searching for love by establishing trust with a prospective romantic partner. Tech support scammers call to report a "problem" with your computer that can only be fixed if you download predatory software.
LOTTERY PHONE SCAMS
When it comes to the lure of easy money, Lavelle offers a piece of advice that comes with virtually no exceptions. "If you receive a phone call about winning a lottery you never entered," he says, "don't believe it and hang up the phone. With this type of scam, a con artist will call the victim and say they won a large sum of money but have to pay a fee to facilitate the earnings. Once the scammer receives the wired money, they disappear. Many of these types of calls originate in Jamaica."
The FTC, which lists lottery scams as one of the top phone-based cons, warns that many scammers are also based in Canada and reminds potential victims that the sale or purchase of cross-border lottery tickets by mail or phone is illegal.
NETFLIX PHISHING SCAMS
So-called Netflix scams are most likely to come through email or text, but you could receive a phone call as well. In this con, the criminal pretends to be from Netflix or another popular streaming service and asks you to update your payment or other private information to avoid a service interruption. In email form, the scam is often accompanied by a dangerous link the scammer wants you to click.
ENDURING SCAMS THAT REFUSE TO DIE
Some scams have been around for years or even decades, bilking innocent victims out of their money or identities. In some cases, tried-and-true phone scams are updated and reinvented. In other cases, the same old con keeps finding new victims year after year.
Robocalls are nothing new. In fact, they're so common that most people pay them little mind, which is part of what makes predatory robocalls so dangerous. "In today's landscape, it is not uncommon to receive multiple robocalls a week on both your landline and your cell phone, even though you've registered your phone numbers with the Do Not Call Registry," Lavelle says. "They're offering everything from lower credit card rates to free vacations and medical alert devices. It's not only annoying, but many of these calls come with a high probability of a scam."
Phishing scams have long been identified as frauds that try to gain the victim's trust by presenting some of the victim's personal information. If the scammer has the last four digits of my Social Security Number and my ZIP code, the victim assumes, the caller must truly be from the bank or the phone company. Spear phishing expands on the old phishing scam by offering some information in an effort to get the customer to surrender the rest. For example, the "bank" might call under the guise of trying to sort out irregular spending patterns on your debit card. To gain your trust, the swindler will offer the last four digits of your SSN then ask you to provide the rest of the number "for security purposes." Spear phishing often works in conjunction with the so-called caller ID spoof.
CALLER ID SPOOF
Often used in concert with spear phishing scams, the caller ID spoof manipulates caller ID software to add an extra layer of legitimacy to the con. The scammer makes the caller ID display your bank's actual name or phone number on your phone, which lulls victims into a false sense of security before the call is even answered.
THE UTILITY SCAM
Another dated but still effective fraud is the utility scam. In this case, the criminal pretends to be calling from the water, gas, or electric department in pursuit of an outstanding bill that must be paid immediately in order to prevent service interruption. This scam often targets not just residents, but small businesses as owners are likely too busy to check on the details and more reluctant to risk having their water or lights shut off.
THE NEIGHBOR SCAM
The neighbor scam employs the caller ID spoof to make it appear that someone is calling the victim's phone from a local number, which people are more likely to answer. Then, the caller pretends to be speaking for a neighbor in an emergency or even from a school nurse claiming to need personal information for their files.
JURY DUTY SCAMS
Skipping jury duty is a serious matter that can result in real consequences. One of those consequences, however, will not be a phone call from a U.S. Marshal or any other government agent threatening arrest if the victim doesn't immediately pay a fine. That's the jury duty scam, and although it's been around for a long time, it still finds new victims every year.
The recovery scam just might be the worst of the bunch for one simple reason: it targets victims who have already been victimized. Scammers buy and sell so-called "sucker lists" — records of people who have already been scammed — and then use that information to follow up with good news: they've recovered the money you lost in the original scam. All they need is your personal data to make sure they have the right person and/or a small fee, and they'll help you recover the money you lost to the first scammer. There is, of course, no restitution. The scammer is merely double-dipping.
WHAT TO DO IF YOU RECEIVE A SUSPICIOUS CALL
Now that you know which scams you're most likely to encounter, it's important to know what to do if you think you've been targeted. The scammer could be casting a wide net or specifically targeting you. In either case, the actions you take or don't take could mean the difference between being victimized and avoiding the scam. You might even be able to help authorities nab the criminals responsible for the fraud.
SCREEN UNFAMILIAR CALLS
The single best way to avoid being taken in a phone scam is to never make contact with the scammer in the first place. That means your best bet in most cases is simply not to answer calls with blocked or private numbers or that you otherwise don't recognize. "If you do not recognize the phone number on your caller ID, do not answer the phone," Lavelle says. "Let it go to voicemail or the answering machine. Most telemarketers will hang up and not leave a message. If it's important, the caller will leave a message."
WHEN IN DOUBT, HANG UP
If you do answer an unfamiliar call and you quickly wish you hadn't, end the call right away. "If you answer your phone and the caller or a recording requests that you push a button to stop receiving the calls, hang up," Lavelle says. "If you answer your phone and you are asked questions that require you to respond with either a 'yes' or 'no,' hang up. Both are techniques that scammers have been using to identify potential victims. If you answer and there's a pause, that's often an indication of a robocall and you should simply hang up."
DON'T FOLLOW INSTRUCTIONS
Both human scammers and automated robocall recordings often try to get you to take some sort of action just to see if they've reached a live person. "Never follow the automated voice asking you to press 1," Lavelle says. "Do not push any numbers to reach a live operator. This signifies that the autodialer has reached a live number and this will probably lead to more robocalls."
REGISTER WITH THE DO NOT CALL REGISTRY
Although the Do Not Call Registry isn't always consistent, it's important to register to help eliminate a good portion of unwanted calls.
"If you've been on the Do Not Call Registry for a month or longer and still get calls, file a complaint with the FTC," Lavelle says. "It doesn't take long, and sometimes enough complaints can get the policy changed. Report illegal robocalls to the Federal Trade Commission at consumercomplaints.fcc.gov or call (888) 225-5322."
BLOCK REPEAT OFFENDERS
If you're regularly receiving calls from the same few numbers, consider blocking them. "Most cell phone providers allow you to block an incoming number to your cell," Lavelle says. "After the call comes in, follow your provider's instructions for blocking the number from calling you again."
You can also seek supplementary, third-party help. "A variety of apps and services, many of them free, make it possible to cut down on unwanted calls on some landline and mobile phones, both Android and iOS," Lavelle says. "They work by blocking them, alerting you to a possible robocall, or forwarding suspicious calls to voicemail."
TRY SERVICES LIKE NOMOROBO
One of the most reliable third-party options, according to Lavelle, is a service called Nomorobo. "It's a free service available through most phone service providers and is designed to block robocalls and telemarketers," he says. "While it may not prevent all robocalls from getting through, you are able to identify those calls as your phone will only ring once and the call is then rejected."
SET UP THE ANONYMOUS CALL REJECTION OPTION
Many scammers, as well as telemarketers who are more annoying than predatory, don't show up on caller ID. Calls from these numbers are the ones you want to eliminate almost entirely, which you can if your phone company offers anonymous call rejection. "Call your phone provider to find out if this option is available for your landline," Lavelle says. "It lets you screen out calls from callers who have blocked their caller ID information, a tactic of telemarketers."
SIGN THE CONSUMER UNION PETITION
Rest assured, you're not the only one who is angry that these calls are even allowed to make it to your telephone. The good news is you can take action to join the masses in registering your discontent. "Sign the Consumer Union petition at EndRobocalls.org to pressure phone companies to start offering free call-blocking technology," Lavelle says.
As previously stated, phone scams and the preferred methods for dealing with them are constantly evolving. The FTC has a wealth of information that you can use to stay informed and protect yourself. Visit the FTC's Bureau of Consumer Protection regularly to stay up to date and to arm yourself with the latest and most accurate information.