How to Protect Yourself from Scammers

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Did you receive an offer that’s too good to be true?
It probably is. Be aware of the red flags associated with these common scams and learn how to protect yourself against them.

According to the FBI’s Internet Crime Complaints Center:1
• Victims collectively lost $71,289,089 to lottery and sweepstakes scams in 2021.
• Victims collectively lost $350,328,166 to real estate and rental scams in 2021.

Lottery Scams
How do I know what a scam looks like?
An alleged lottery representative of a sweepstakes organization contacts you, claiming you’ve been randomly selected as the winner of a large sum of money, a car, or a free vacation. This representative tells you that you must pay an initial fee or tax to collect your winnings. However, if you do not respond to demands for payment, the representative may apply pressure and resort to intimidation tactics or even threats.

Red flags to be aware of:
• You did not purchase a lottery ticket or enter for a chance to win. If you didn’t play, you didn’t win. Additionally, it is illegal to enter a foreign lottery or sweepstakes.
• Sweepstakes organizations will not contact you directly. State lotteries publish winners online or broadcast results on television.
• The representative claims a deadline to pay the fee or initial tax. In reality, the scammer is trying to get you to act before you see that there is no prize.
• The scammer does not want you to tell friends or family of your good fortune.
• Some scammers send a check as the prize, indicate an overpayment, and request that the difference be returned. The check will eventually bounce, and you will be on the hook to pay the bank.
• Messages contain errors and typos.

Timeshare Resale Scams
How do I know what a scam looks like?
A third party contacts you regarding the sale or rental of your timeshare in Mexico for more than it’s worth. The third‐party guarantees you will have a
buyer/renter for your timeshare. However, they require upfront fees to affect the sale. The buyer/renter requires a wire payment for closing costs, taxes, and other expenses in an escrow account in Mexico before the completion of the sale. Once the fees are paid, the promised funds for the sale/rental are not paid to you, and the scammer discontinues all communication.

Red flags to be aware of:
• Promise of a buyer who is willing to pay more than the timeshare is worth.
• Payments for taxes, closing costs, and other fees must be sent in a wire
transfer before completing the sale/rental.
• The third party does not exist at the address they claim.
• The phone numbers have US area codes, but the calls come from Mexico.
• Messages contain errors and typos.
• In some cases, an alleged law firm will contact you to help recover lost funds
and require an upfront retainer fee. However, this may also be related to the scam.

Inheritance Scams
How do I know what a scam looks like?
Someone claiming to be an attorney or customs official informs you that an inheritance has been bestowed to you by an unknown or “distant” relative. The deceased either share the same last name as you or did not identify a beneficiary before their death, giving you a claim to their inheritance. You are asked to pay an initial fee or tax due to supposed governmental or banking restrictions to collect your inheritance.

Red flags to be aware of:
• The individual that contacts you claims to be associated with a law firm or financial institution. In fact, the letter appears to be from a legitimate organization (uses the organization’s letterhead). However, the contact information listed contains a public email domain such as Gmail or Hotmail.
• The individual is eager to share personal documents with you to validate the inheritance claim. However, a legitimate organization never shares another client’s personal documents with you.
• You are asked to immediately contact the individual for more information on receiving your inheritance before the government claims it.
• There is no return address on the letter addressed to you.
• Messages contain errors and typos.

How to Protect Yourself Against Scams
• Never share your account information, Social Security number, bank account information, or other sensitive financial information with anyone.
• Conduct an internet search using the exact names, wording, and contact information provided by those requesting the money to check for associated scams.
• Do not reply to or click on spam text messages or links.
• Stop communication and block the sender.
• Register your phone number with the National Do Not Call Registry.
• Do not respond to offers that sound too good to be true.
• Be aware of secondary scams, including someone promising to find your scammer and recover funds sent.
• Do not offer to receive funds on behalf of a third party in exchange for a payout.
• Be wary of websites or correspondence claiming to be from a business organization or U.S. government agency with a public domain.

Source:
1 Federal Bureau of Investigation Internet Crime Complaint Center, 2021 Annual Report, p. 22,
pdf/AnnualReport/2021_IC3Report.pdf, accessed March 2022.

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