Avoid Being A Victim of Scams
In 2024, scams impersonating businesses and government were among the top frauds reported to the FTC; these scams resulted in $2.95 billion in consumer losses. In Alabama, the number of fraud reports were 6,265 with a total loss of $27.7M. The top scam in Alabama was the imposter scam. The FTC implemented a rule called the Impersonation Rule.
The Impersonation Rule makes it illegal to:
- materially and falsely pose as a government entity or officer, in or affecting commerce; or materially misrepresent affiliation with a government entity, in or affecting commerce; and
- materially and falsely pose as, directly or by implication, a business or officer thereof, in or affecting commerce; or materially misrepresent, directly or by implication, affiliation with, including endorsement or sponsorship by, a business or officer thereof, in or affecting commerce.
Violations of the Impersonation Rule could result in civil penalties of up to $53,088 per violation and may require refunds to be paid to the affected consumers.
Four Signs That It’s a Scam
- Scammers PRETEND to be from an organization that you may know.
Often, scammers pretend to be contacting you on behalf of the government. They may use a real name, like the FTC, Social Security Administration, IRS, or Medicare, or make up a name that sounds official. Some pretend to be from a business you know, like a utility company, a tech company, or even a charity asking for donations.
They use technology to change the phone number that’s on your caller ID. So, the name and number may not be real.
- Scammers may tell you there’s a PROBLEM or a PRIZE.
Scammers may say that you are in trouble with the government. Or you owe money. Or someone in your family had an emergency. Or that there is a virus on your computer.
Some scammers may tell you there is a problem with your account and that you need to verify information.
Other scammers will lie and say you have won money in a lottery or sweepstakes but you have to pay a fee to get it.
- Scammers will PRESSURE you to act immediately.
Scammers want you to act quickly so that you do not have time to think. If you are on the phone, they may tell you not to hang up so you cannot check out their story.
They may threaten to arrest you, sue you, take away your driver’s or business license. They may say your computer is about to be corrupted.
- Scammers will tell you to PAY in a specific way.
They often insist that you can only pay by using cryptocurrency, wiring money through a company like MoneyGram or Western Union, using a payment app, or putting money on a gift card and then giving them the numbers on the back of the card.
Some will send you a check (that will later turn out to be fake), then tell you to deposit it and send them money.
How To Avoid a Scam
Block unwanted calls and text messages.
Take steps to block unwanted calls and to filter unwanted text messages.
Don’t give your personal or financial information in response to a request that you didn’t expect. Authentic organizations will not call, email, or text to ask for your personal information, like your Social Security, bank account, or credit card numbers.
If you get an email or text message from a company you do business with and you think it could be real, it is still best not to click on any links. Instead, contact the company by looking up their number or using a website you know is trustworthy. Do not call a number that was given to you through the email or text.
Resist the pressure to act immediately. Authentic businesses will give you time to decide. Anyone who pressures you to pay or give them your personal information is a scammer.
Know the way scammers will tell you to pay. Never pay someone who demands that you can only pay with cryptocurrency, a wire transfer service like Western Union or MoneyGram, a payment app, or a gift card. And never deposit a check and send money back to someone.
Talk to someone you trust. Before you do anything, tell someone — a friend, a family member, a neighbor — what happened. Talking about it could help you realize it is a scam.
Report Scams to the FTC
If you were scammed or think you saw a scam, report the scam to FTC at ReportFraud.ftc.gov.
