Scam of the day – June 4, 2024 – Telltale Signs of a Scam

by | Jun 3, 2024 | Scam of the day

There are many indications that someone is trying to scam you and they may vary from scam to scam, but one constant is the method of payment.  More often the method of payment suggested in a scam is a telltale sign of a scam.  According to a recent report by the Federal Trade Commission (FTC) the most common payment method requested by scammers were cryptocurrencies, wired bank funds, gift cards  and payment apps such as Zelle.  The reason for this is that unlike a credit card payment that can be stopped or reversed or a check where payment can also be stopped, these methods of payment are quick, irreversible and anonymous all of which works to the benefit of a scammer.  Anytime you are asked for a payment by any of these methods, you should be extra skeptical and while  some legitimate businesses may in some instances request wired funds, no legitimate business or government agency demands payment by cryptocurrencies, gift card or Zelle and, in fact, no government agency even accepts cryptocurrency payments, gift cards or Zelle payments.

TIPS

Gift cards in particular have become a favorite method of payment for scammers.  Interestingly the most reported gift card scams use Apple and Target gift cards.  As for Zelle, because of the increase personal liability for fraudulent payments, Zelle should never be used for payment to anyone other than a close friend or family member.  Gift cards, in particular when you are asked to pay with a number of gift cards are always a scam when asked for as a method of payment and it is a sad commentary that the IRS actually has had to warn people that it does not accept payments by way of gift cards.  Finally, no legitimate business demands payment through cryptocurrencies, but scammers do because of their anonymity and inability to have the payment reversed.

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What do Steven Spielberg, Kevin Bacon, and John Malkovich have in common?  In addition to being famous entertainers, they are also scam victims. Anyone can be a scam victim. Scammers have a knowledge of psychology that Freud would have envied, and they know how to manipulate us into becoming victims of scams. Phone calls, emails, and text messages are favorite methods scammers use to contact their victims, and it can be all but impossible to know who is really contacting you. Through a technique called “spoofing,” they can make their call or text message appear to come from anyone they wish.  So, how can individuals help proactively avoid becoming a scam victim? The answer is ScamAssist® from Iris® Powered by Generali. Anytime a ScamAssist customer gets an email, text message, or phone call luring them into providing personal information or making a payment, all they have to do is use ScamAssist to learn whether the communication is likely to be a scam. While Iris® Powered by Generali doesn’t offer ScamAssist for direct purchase, if you’re a business professional looking to fill a product gap in your portfolio and want to provide customers a service they’ll truly value, contact Iris to learn how you can get started. Join a growing list of companies – such as major retailers like Staples – that have offered ScamAssist bundled with other core offerings to help differentiate themselves in the market and provide their customers with a tool they will truly utilize.