At Pangea, we know that security is everything. That’s why when you send with us, you can rest easy knowing that our state-of-the-art encryption keeps your money and your data completely safe. But you do more online than just send money — you shop, chat, read, watch and surf. The downside of all this convenience? An increased risk of getting scammed.
While anyone can be a victim of fraud,many criminals tend to target more vulnerable communities: elderly, non-native English speakers, immigrants, and people of color. According to the AARP, 40% of Black and Latinos in the US have been targeted by online scams and frauds.
We want you to stay safe, and the best protection is knowing the red flags. Keep reading to learn how to identify the most common fraud schemes and, most importantly, how to avoid being a victim.
The Most Common Scams
The latest data released by the Federal Trade Commission, the government agency that protects consumer integrity, shows that consumers reported losing more than $8.8 billion to fraud in 2023, an increase of more than 30 percent from 2022. From imposters to shopping schemes, here are the most common scams on the web:
Phishing
In this scam, you receive an email message that looks to be from a respectable company — maybe your bank or credit card company — asking you to verify your personal information, account PIN or card number. Scammers will send texts or emails often telling you your account is on hold (it isn’t), there’s been a problem with billing (there hasn’t) or asking you to update payment information (don’t).
How to Spot It
These fraudsters can be pretty convincing, they spend a lot of effort making emails look like the real deal. But if you feel like it’s generic or the email address looks strange, it’s likely not real. Also, while legitimate companies may correspond with you via email, they typically direct you to their main website to log in to your account.
How to Protect Yourself
First and foremost: You know those computer and phone software updates we all put off for another day? Stop doing that. Keep your security software updated to always have the best level of protection. After that, multi-factor authentication is your best friend. From your social media account to your bank account, turn this feature on to stop fraudsters. You’ll need multiple credentials to access your account, like your PIN and a one-time code sent to your phone, or even your face or fingerprint.
Automatic withdrawals
While this scheme is often directed at members of immigrant communities, hackers also target the elderly or people with a language barrier. A fake call center will contact the victim claiming to be from a utilities company or selling a subscription. They will offer automated payments for covering goods or services, drawing funds automatically out of the victim’s account periodically.
How to spot it
If an offer seems too good to be true, it probably is. Avoid giving your bank information to any unfamiliar company or person over the phone or through unfamiliar free-trial websites. If you recognize the company name, but still have doubts, just go directly to their official website and register there rather than via phone. There are no special offers just for people who sign up via phone call.
How to protect yourself
Financial monitoring is the best defense here. Check over your monthly bank statement and flag any charges you don’t recognize, especially if they seem to be recurring.
Rental scams
Scammers will post ads in social media or other outlets offering rental properties at an abnormally low price. Once the victim has contacted them, they will request an immediate deposit in order to stop offering the property and start the paperwork. These fraudsters love targeting immigrant communities, especially the undocumented.
How to spot it
Rental scammers tend to use aggressive sales techniques, encouraging you to sign the paperwork without seeing the property or make a deposit “before someone else gets it.” They often insist that you can’t speak with the owner because they are too busy or out of town and won’t let you into the property or charge a viewing fee.
How to protect yourself
Stand your ground against high-pressure tactics. Don’t send any deposits or sign any agreements without viewing the property, speaking to an owner and running a search on the property. Only make a security deposit or pay a first month’s rent once an official lease has been signed by both you and the property owner.
Identity fraud
Sadly, one scam that keeps on rising these days, identity theft happens when someone gets ahold of your most sensitive information, such as your Social Security Number, credit card number and PIN, etc. Thieves may apply for credit cards, buy or rent property, file taxes, get medical services and more. They rack up heavy bills and it can take time and money to restore your identity.
How to spot it
If you get bills for products you didn’t buy, calls from collections agencies for accounts you didn’t create, or find your credit score dramatically lowered, you could be the victim of identity theft.
How to protect yourself
Identity theft can happen to anyone. If you believe you have been a victim of scam, you can contact the Federal Trade Commission (FTC) immediately to file a report. The FTC collects all complaints related to financial and identity fraud. You can do it online at identitytheft.gov or by phone at 1-877-382-4357 (9:00 AM – 8:00 PM, ET).
Immediately contact your bank and credit card company to file a report, and remember to ask if there is any kind of fraud coverage included in the services they provide to you.
Depending on the kind of scam you were victim of, your report might be escalated from local to state and even federal authorities.
Good Cybersecurity Habits
Experience has taught us that there is no such thing as being too cautious, so that’s why thinking through any time you make a transaction, taking your time and asking the right questions will go a long way.
- If you are being contacted via phone, always save the phone number for the record, this will help you provide useful information to law enforcement in case you need to file a report.
- Always be informed and aware: make sure you know the names of the utility companies you use.
- If you are being contacted via email, make sure it comes from a legitimate sender. Look at the email address and compare it to other email addresses you have received before from the same company to see if it’s the real thing. If the email you received has multiple destinations and it has a lot of numbers or strange characters on the email address, it’s very likely that it is fake.
- Never provide sensitive information over the phone. Legitimate customer services representatives will only use non sensitive information for verification purposes, and in case you need to make a payment over the phone, you must never share your banking information directly with the representative, but through an IVR automated voice menu.
- If something seems too good to be true, it’s very likely that it is. Never trust any kind of ads that offer goods or services at a below-market price. Sometimes good deals happen, but if it looks unrealistic, it probably is.
- When submitting any personal or banking information to an online form, make sure you are on a secure site. To check, go to the web address bar at the top of the web browser and look for “https.” That indicates that this website is secure and follows the right protocols to protect your personal information.
Getting scammed doesn’t just damage your personal finances, it can affect your mental health and take weeks or months to fully recover from. If you are a victim of fraud, remember you’re not alone. Remember: This can happen to anyone and knowledge is the best defense.
