A scam is a fraudulent operation that attempts to secure financial information or other sensitive personally identifiable information (PII) which will then be used, or sold to other individuals also looking to use information that is not theirs, for financial gain.
Nearly every scam follows the same pattern:
- First, the scammer either establishes a relationship with you or relies on a relationship you have with someone else, uses a scare tactic or leads you to believe you have something to gain in an effort to get you to divulge information.
- Then, the scammer creates a sense of urgency the information has to be provided right now and cannot wait.
- What follows after depends on whether or not you share any information and varies depending on the scam itself.
How Do Scams Happen
Scams occur in many forms and through many different avenues. Scammers can contact you by phone, email, social media, internet browser pop-ups and mail. Typically scammers obtain this information through publicly available sources many scam victims feel targeted or feel like they did something wrong, but often the victim is just a number in a series of intended targets. There are steps you can take to protect your PII to minimize your risk.
Scams that involve relationship building or preying on existing relationships include the romance scam, grandparent scam, or scammers contacting you pretending to be a friend, or using a friend’s hacked account. These types of scams typically happen through social media, though they can also happen through email or by phone. Scams may also use your existing relationship with a business or financial institution to try and get your username and password and typically happen through email (phishing).
Scams that involve scare tactics include scammers posing as a government agency (e.g. IRS, SSA, police, or FBI) or as a collections agency on behalf of a business. These typically happen by phone.
Scams that lead you to believe you have something to gain are foreign lottery scams, Nigerian prince scams, government grant scams and unclaimed money scams which typically happen by phone or email. Scams to participate in a new, lucrative business venture tend to happen through social media. Scams pretending to offer a good or service at a too-good-to-be-true price, then do not deliver, are typically found on various online platforms.
What Types of Personally Identifiable Information Are Involved In Scams
All types of personally identifiable information can be sought by a scammer. Username/password, financial account information and/or Social Security number tend to be requested most often.
Resolving Scams
If you did not provide any information to the scammer, you should be okay but it is a good idea to block the scammer on whatever platform they contacted you (email, phone, social media, etc.). If you did fall for a scam, learn more about our recommended steps here.
If you are looking for direct assistance and a personalized plan to remediate falling for a scam, call an expert advisor for no-cost at 888.400.5530 or LiveChat with us.
