These 5 Phone Scams Still Fool Millions -- Don’t Become the Next Target
Even as fraud has become increasingly sophisticated amid the rise of e-commerce and online banking, many victims still fall prey to old-school phone scams.
Phone scams come in many forms, ranging from robocalls to texts, but tend to make similar threats and promises, according to the Federal Trade Commission. Review the common phone scams that regularly target everyday people below.
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1. Business and Investment Scams
This is a popular scam in which the caller promises to help you start your own business or guarantees big profits from an investment. You'll be asked to provide funds -- and if you fall for it, you'll probably never see those funds again.
2. Impersonator Scams
This scam involves callers pretending to be someone you can trust, such a government agency, law enforcement officer, court official, family member or business you recognize. They typically ask you to provide financial or personal information to address some kind of fake problem.
3. Debt Relief and Credit Repair Scams
With this scam, you will be made an offer to lower your credit card interest rates, improve your credit score or get loans forgiven if you pay a fee. If you fall for this scam, you face the risk of losing money and ruining your credit.
4. Charity Scams
Here's another popular scam involving callers posing as real charities and asking for donations. Before handing over your money, take the time to vet the charity on your own and then donate through its official channels.
5. Prize Scams
In a typical prize scam, the caller will tell you that you've won a prize but need to pay taxes, registration fees or shipping charges to get it. If you get one of these calls, you can be sure it's a scam.
The best way to deal with these types of scams is to simply hang up the phone and block the number. One thing you shouldn't do is trust the caller ID -- it's entirely possible the scammer figured out a way to make it look like you're getting a call from an official agency or legitimate business.
If you've lost money to a phone scam or have information about the company or scammer who called you, let the FTC know by visiting ReportFraud.ftc.gov. If you didn't lose money and just want to report a call, use the reporting form at DoNotCall.gov.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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