TOTALLY GEEKED!

Dear Ed,

One of your best defenses against fraud is to learn how scammers work their cons.

Phantom Riches describes when a scammer dangles the prospect of wealth, but can’t provide it, because the prospects don’t exist.

Profiling occurs when scammers develop a victim profile by asking a series of personal questions to pinpoint your emotional trigger. Once they know what your emotional trigger is, they can hone in on which specific types of scams work best on you.

Scarcity is another way to play on your emotions. The con offers a product or service that’s only available for a short amount of time “for someone special, like you; so don’t miss out.” In other words, if something is rare or scarce, it must be more valuable—but usually it is just fake.

With Credibility,  con artists often try to build trust by claiming affiliation with a well-known celebrity or a reputable organization -- or by touting a special credential or experience. The IRS is perhaps the government agency most commonly mimicked in fraudulent attempts to get your personal information. Another very common scam is for the con artist to claim to be from Microsoft in an attempt to gain access to your computer.

What to do?

Try to keep these tactics in mind as you listen to or read a pitch from someone or some organization, particularly one you don’t know. Do your research and find out exactly who you’re dealing with.

• For an investment product, make sure the seller is registered with FINRA, and the product or financial advisor is registered with the Securities and Exchange Commission or your state securities regulator.
• You can also contact your state Attorney General to find out if a similar scam has happened to someone in your community.
• The Federal Trade Commission has a number of resources related to different types of identity theft.
• And, to find out more about scammers’ tactics, read AARP’s Fraud Watch Network Con Artist Playbook at aarp.org/FraudWatchNetwork.

Sincerely,

Kristin Keckeisen
Fraud Watch Network

P.S. Spotted a scam?  Tell us about it.  Our scam-tracking map gives you information about the latest scams targeting people in your state.  You’ll also find first-hand accounts from scam-spotters who are sharing their experiences so you know how to protect yourself and your family.