How to Identify and Protect Against Telephone Fraud

Phone fraud, or more commonly known as phone scams, affects millions of people every year. In 2015 alone, an estimated 27 million people fell victim to phone scams. But what exactly is phone fraud, how can you recognize it, and most importantly, how can you protect yourself from it?

What is Phone Fraud?

Phone fraud occurs when a scammer calls you and tries to trick you into giving away personal information, which they then use to steal money or commit fraud. Have you ever received a call saying, "Congratulations! You have been randomly selected to receive [insert unbelievable offer]"? Chances are, that was a scam.

Scammers don’t just rely on phone calls. They may also send letters pretending to be from a trusted company or email you about a service you actually use. Their tactics are constantly evolving, making it crucial to stay informed.

How to Identify a Phone Scam

No scammer will tell you upfront that they are trying to deceive you. Instead, they may use tactics such as:

• Building trust by asking personal questions about your family or background.
• Using threats, such as fines or jail time, to pressure you into revealing information.
• Creating urgency by telling you the offer is time-sensitive.

Be skeptical of calls from unknown numbers, especially if they make unrealistic claims. If you’ve never had a millionaire relative, they likely didn’t leave you an inheritance. If you haven't received an official letter about jury duty, there’s probably no arrest warrant against you.

How to Protect Yourself

Here are some effective ways to safeguard yourself from phone scams:

• Never share personal information. This includes your social security number, address, email, or even your full name.
• Don’t answer unknown calls. Let them go to voicemail and verify the caller before responding.
• Don’t fall for pressure tactics. Scammers often try to rush you into making decisions.
• Verify credentials. If a caller claims to be from a company or government agency, hang up and call the official number to verify.
• Report scam calls. If you identify a scam, report it to the Federal Trade Commission (FTC) and CHECK CALLER so authorities can track and take action against scammers.

Conclusion

Phone scams are a serious issue, and anyone can be a target. While some scams may seem ridiculous, others are highly sophisticated and well-organized. Although the "National Do Not Call Registry" provides some level of protection, many scammers find ways to bypass it.

Always stay vigilant, never share sensitive information, and think critically about unexpected phone calls. While phone scams may not disappear anytime soon, you can take steps to ensure they are not successful against you.