As 2015 closes, it’s the same old story: Another 750 documented data breaches roughly the same as in 2014, but this year stealing records of at least 178 million Americans (up from 160 million).
These breaches may grab headlines, but America has a huge problem with scammers that use telemarketing calls to target unsuspecting victims with intimidation, fear, and/or immediacy. These tactics are the cornerstone strategy of most scams. Unfortunately, only about one in ten older victims ever reports being scammed to law enforcement officials because of embarrassment.
Thankfully, tens of thousands of Americans have shared scams with the Fraud Watch Network helpline in 2015, so that you can learn about how to protect yourself. This year, we fielded approximately 15,000 phone calls; other reports flooded the Fraud Watch Network website.
The top scams of 2015 nearly mirrors 2014’s list, so chances are, these scams are not going away. As we close out the year, protect yourself and your hard-earned money from these top scams:
1. IRS Imposters. This remains the nation’s biggest scam: Phone calls from fraudsters posing as IRS agents who threaten arrest, deportation or seizure of property or businesses unless immediate payment is made for alleged back taxes. Recently, bogus mailing and faxes have been added. Remember, the real IRS doesn’t call out-of-the-blue nor demand immediate payment, especially by prepaid debit card or wire transfer.
2. Tech Support Scam. These imposters, claiming to be from Microsoft and other tech companies and lying about a supposed computer virus, also claim the most AARP members. By year’s end, some 3.3 million Americans will have paid an estimated $1.5 billion to these fraudsters for bogus “tech support” and, in the process, will have given these scammers remote access to their computer files and passwords for possible identity theft.
3. Foreign Lotteries. What to know: You can’t win some far-away lottery you didn’t enter. Remember that “You win!” phone calls, letters, or emails are scams. If you ever win a legitimate lottery, you never have to pay taxes, processing fees or anything else upfront to collect. And that received “partial payment” check is counterfeit; in fact, you’re on the hook for funds drawn from its deposit.
4. Sweepstakes. Different type of contest, but same instructions…and outcome: You’re told you need to pay in order to collect your prize be it cash or merchandise. But the bounty never comes. The reigning (and classic) ruse aims for upfront taxes and fees under the guise of winning Publishers Clearing House.
5. Grandparents Scam. What ignites more fear and sense of urgency than a desperate call from a loved one in trouble? But it’s not grandchildren or other relatives calling; it’s scammers who glean names and family details online or simply let you fill in holes with generic greetings (“Hi, it’s your favorite grandchild and I need help!”).
Kristin Keckeisen
Fraud Watch Network