Spotting the Latest Financial Scams

According to NPR, roughly two-thirds of Americans have been the victim of a scam or fraud. This can lead to having your information compromised or your money stolen. That said, it’s important to stay current on the latest financial scams. We’ll highlight five of them below.

Imposter Scams

As it sounds, imposter scammers pretend to be someone they’re not to obtain money, account information, or other personal data. They often pose as reputable organizations, like the IRS, a police department, or a charity. Some even pretend to be people you know and can fake their caller IDs to seem more legitimate. That said, if a call seems out of the ordinary, trust your gut and don’t give in. Hang up the phone and call that person or organization back with a number you have on file for them. Often, it isn’t the same number that contacted you. It should be noted that government agencies will never call you for official business or ask for money over the phone.

Debt Collection Scams

While there are debt collectors who will call you about legitimate debts you owe, debt collection scammers will target you for debts you don’t owe, or that you’ve already paid. That said, don’t provide personal information to them until you can confirm the debt collector is legit. When receiving a call from a suspected debt collector, ask what company they represent and the company’s address. You can also ask them for written proof of debts owed to be sent in the mail. If they can’t provide either of these things, it’s likely a scammer who's calling you. Debt collection scammers may also use intimidating language to coerce you into sending them money.

Foreclosure Relief or Mortgage Scams

Mortgage and foreclosure scammers target your money or your home by posing as a legitimate real estate agent, settlement agent, or mortgage loan office. They may ask for personal information or ask you to fill out confusing paperwork to steal closing costs or down payments. Some also ask for upfront fees. If you receive texts or emails from someone claiming to be a lender or agent, it might be a scam. Independently contact that individual with the number you have on file. It's also wise to discuss money transfers or the closing process with your agent in person to ensure you don’t fall victim to a scam.

Romance Scams

Romance scams are one of the oldest tricks in the book. These scammers trick people into falling in love with them to gain their trust and steal their money or personal information. They often target vulnerable people, like widows or young adults. As a general rule of thumb, never send money to people you don’t know in person. You should also be cautious about what information you share with people you’ve never met. Be skeptical about emails or texts from people claiming they know you. If you suspect someone might be a romance scammer, block them from contacting you.

Grandparent Scams

As its name suggests, these types of scams target grandparents. Scammers may pretend to be a grandchild or relative asking for money to get them out of trouble. If a call sounds out of the ordinary, or if the caller insists on secrecy, be wary. Artificial intelligence has made it easy for scammers to clone voices that make a caller seem more legitimate. If you receive a call from someone who claims to be a family member, hang up the phone and independently contact that person. If the call was a scammer, block them from contacting you. It should be noted that grandparent scams tend to be most prominent around the holidays, but they can happen anytime.

Anyone can be a scam victim. That said, staying educated not only protects you – it protects your financial future.

For more on protecting yourself against financial scams, check out our blog post about it.

Hunter Morrison

About Hunter Morrison

Hunter has freelanced for various print and radio publications across Northwest Florida, including The Bay Beacon, Navarre Press, Inweekly, Crestview News Bulletin, and WUWF. He was also the Editor in Chief of the University of West Florida’s student newspaper, The Voyager. In 2023, Hunter moved to Kenai, Alaska to take up a news reporting position with KDLL Public Radio. For fun, Hunter enjoys cross-country skiing, hiking, photography, thrifting, traveling, and looking for the best Thai food around.