Protecting Yourself From Common Scams

Scammer or scamster (n.): a person who swindles you by means of deception or fraud; chiseler, chiseller, defrauder, grifter, swindler, gouger

(SALEM, Ore.) - Most people believe that they would never be fooled by a scam artist, and that those who do fall for them aren't very bright.

The thing is, there are several different types of scams, from the subtle to the absurd, and scam artists spend a lot of time perfecting ways of separating people from their money and their identities.

The fact is that millions of people fall victim to scammers each year, and many of them might not even realize what’s happening until it’s too late and they start incurring strange charges on their credit cards, start losing money from their bank accounts, and take serious and devastating hits to their credit.

To understand how easy it is to fall victim to a scam, you need to understand how scammers operate.

How Scammers Operate

Scammers are master manipulators and they prey on human emotions like trust, fear, and desperation. Below are three common scams.

The Credit Repair Scam is where the scammer promises to clean up your credit by giving you a new credit identity, with a clean slate. They may take the mark’s social security number and issue him a new one.

Unfortunately, the new social security number is most likely stolen from someone else and the scammer will also have stolen the mark’s old social security number. If the mark gets caught, he could be prosecuted for identity theft, which could include a prison sentence.

This scam works because it plays on the mark’s financial desperation. Having bad credit can affect someone’s ability to get a job and find housing, so if someone offers a quick solution they are likely to go for it.

There are plenty of legitimate credit repair companies out there, but none of them will offer to fix your credit overnight, or give you a new social security number to do it. When considering a credit repair service, check consumer and industry review sites to get an impartial view of their services. Most credit repair agencies have testimonial pages and reviews online--take advantage of this information in your search for assistance.

The Text Scam is where the scammer sends a text message alerting the target that his bank account, or credit/debit card has been suspended and provides a number that he must call to rectify the situation. Once the target calls, the scammer collects his personal information and uses it to do anything from emptying out his bank account to opening multiple lines of credit in his name. They might even use his identity to scam others.

Other variations on this scam include the bank email that includes a link to a page that collects their information.

This scam works because it feeds on fear. In the case of the bank account fraud, it’s the fear of losing access to his money. In the case of the fake process server calls, it’s the fear of arrest and legal entanglement.

The intent is to get the mark so upset that they respond to the message without thinking, and will do anything the scammer asks to make the problem go away.

If you get one of these texts, phone calls, or emails, the first thing you should do is take a deep breath and remain calm.

If you are concerned about your bank account, call your bank directly, on the number that appears on your bank documentation, or go into the nearest branch.

Do not call the number on the text or go to the link in the email. You should also familiarize yourself with your bank’s process for notifying people of account issues.

The Cashier’s Check scam is where the scammer contacts someone who is selling something online, and presents an elaborate scheme to pay with a cashier’s check for more than the amount of the sale.

The target is supposed to cash the check, take the money for sale, and give the scammer the rest. Within weeks, and sometimes days, the cashier’s check is discovered to be fraudulent, and the target is on the hook for the amount of the check, and could also be in danger of having criminal charges brought against him.

This scam works because cashier’s checks are trusted methods of payment. They also work because scammers tend to target small businesses and individual sellers, who might be desperate to make a sale and would be willing to accept the scammer’s terms to make that happen.

The best way to protect yourself is to avoid making any deals where the buyer pays more than the amount of the sale, and avoid taking cashier’s checks.

If you do decide to take a cashier’s check as payment, call the bank before you deposit the check and have them verify that the check is good. It can take several days for a cashier’s check to work its way through the bank’s system naturally, but if you call in and alert them to possible fraud, that usually expedites the process.

If you do decide to deposit the check without checking first, make a copy of the check for your records, advise the buyer that there is a waiting period on merchandise or services purchased with a cashier’s check, and do not touch those funds or deliver the goods for at least two weeks.

Conclusion

As you can see, scams aren't just about Nigerian Princes looking for a kind soul to help them launder a million dollars; and they aren't just about fake lottery scams. They are about targeting and manipulating people by any means possible.

They are also about volume -- scammers don’t target one person at a time, they reach out to thousands, because they realize that the wider the cast their nets, the more likely they’ll catch a mark.

This means that anyone could fall victim to a scammer. All they have to do is get to you at the right time and push the right buttons.