Protecting Yourself from Phone Scams: Recognize, Prevent, and Respond

Phone scams are becoming increasingly tricky, elaborate, and convincing, posing significant threats to your money and financial safety. The Federal Trade Commission (FTC) reports that consumers lost more than $12.5 billion to fraud in 2024, a 25% increase from the previous year. 

Notably, imposter scams — where fraudsters pose as trusted entities like banks — accounted for $2.95 billion of these losses.

Understanding Phone Scams

In the most common phone scams, you’ll receive a call under false pretenses attempting to extract your personal information, gain access to your money, or both. These scams can take various forms, including:

• Bank Impersonation Scams: Scammers pose as bank representatives calling from your bank — often using a caller ID that looks like it’s from your bank in a techie trick called “spoofing” — claiming issues with your account to elicit sensitive information. The caller may manufacture a fraudulent “pending charge” to make the scam seem legitimate or claim to be calling to verify whether a transaction was authorized by you, the client. Sometimes the caller says they’re attempting to verify a wire request or confirm whether a debit card transaction is valid. Regardless of which story is being served up, the intent is the same: to obtain confidential information to gain access to your funds.
• Government Impersonation Scams: Fraudsters pretend to be officials from agencies like the IRS, and they may even threaten legal action to intimidate you into paying money or divulging personal data.
• Tech Support Scams: Scammers call you alleging viruses or security breaches on your device and claim to be from reputable tech companies. They then request access or payment for fake services.

Recognizing Phone Scams

To protect yourself, it's crucial to recognize common tactics used by scammers:

• Urgent or Threatening Language: Scammers often create a sense of urgency or fear to pressure you into immediate action. If you’re feeling pressured to do something quickly, recognize this as a red flag that the caller is scamming you. Approach all unexpected calls with 100% ZERO TRUST.
• Requests for Personal Information: You will never be called by a legitimate organization asking for sensitive information like your Social Security number, your username or password, account details, or PINs or CVVs for debit/credit cards.
• Unsolicited Calls/Transactions: Be wary of unexpected calls, especially if they request personal information or money. Alternatively, you may receive a text with a one-time access code to authorize a transaction you didn't initiate; this is a red flag, so ignore temptation to click or share the access code with anyone who may call you.
• Too Good to Be True Offers: Scams often involve promises of large sums of money or prizes in exchange for upfront fees or personal information.

Preventive Measures

Now that you can recognize some of the most common scam tactics, it’s important to identify steps to safeguard your money. 

1. Independently Verify Caller Identity: If you receive an unexpected call, hang up and contact the organization directly using their official contact information that you obtain from a reputable directory, such as an official website. DO NOT TRUST CALLER ID. Do not call the number back that called you, and do not click on links in texts or emails. You’ll want to do your own search for the company and call the number you find, explaining your situation and asking for assistance.
2. Be Skeptical of Unsolicited Calls: Exercise caution with unsolicited calls, especially those requesting personal information or payments.
3. Educate Yourself and Others: Stay informed about common scam tactics and share this knowledge with friends and family. The Federal Trade Commission offers robust resources to help you identify and avoid imposter scams.

Responding to a Suspected Scam

What happens if you suspect you've been targeted by a scammer? Below are important ways to move forward.

• Do Not Provide Information: Resist the urge to share personal or financial information with unsolicited callers, even if they present a compelling case. It’s always better to call back and speak with a person you find to verify any information.
• Hang Up Immediately: Disconnect the call without engaging further.
• Report the Incident: File a complaint with the FTC and inform the agency the scammer claimed to be representing.
• Monitor Financial Accounts: Regularly review your bank and credit card statements for unauthorized transactions and report suspicious activity immediately to your financial institution.

Phone scams pose a significant threat, but it’s not the only way scammers are attempting to access your funds; in fact, the volume of scam robotexts has nearly tripled since 2021, as bad actors are flocking to more unregulated texts instead of calls. 

But by staying vigilant and informed of fraud tactics, you can protect yourself and your loved ones. Recognize the warning signs, implement preventive measures, and take swift action if you’re targeted. And remember: Legitimate organizations will never pressure you for immediate payments or sensitive information over the phone.

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