Have you ever gotten a phone call, email, or text message with an urgent notice about your bank account or credit card? Are they trying to get immediate information from you, including your address, card number, online banking password, or Social Security number?
This isn’t a security check on your account. It’s called a “Phishing scam” or an “Imposter scam,” and is intended to steal savings from your account or use your cards fraudulently.
Being the target of a scam can be overwhelming, frightening, and frustrating all at the same time. The best defense against a scam is to know the signs of one, and what to do if you feel like you may be targeted. Here’s what you need to know about Phishing and Imposter scams.
What are Phishing and Imposter Scams?
According to the Federal Trade Commission, a Phishing scam is defined as an “online scam that targets consumers by sending them an e-mail that appears to be from a well-known source.” An Imposter scam takes it a step further by calling or texting a victim with the goal of tricking them to give out personally identifiable information, money, or access to financial accounts.
In either situation, the scammers will try to portray themselves as a trusted source, such as your financial institution, the police or a law enforcement agency, or even a government agency. In more sophisticated attack attempts, they may also identify themselves as a current employee of the company or “spoof” their caller ID to match the organization’s actual number in an attempt to add legitimacy to their claims.
A scammer may use the Phishing or Imposter scam attacks by trying to earn your trust by offering to “protect” your accounts or information. They can also attempt to overwhelm you into giving your information by threatening terrible outcomes for non-compliance, such as having your money frozen or even arrest. Both of these are hollow statements intended to trick you into making an impulse decision to comply with them to steal for money or your information to commit further fraud.
What Should I Do if I’m Being Targeted by a Scam?
If you believe you could be the target of a Phishing or Imposter scam, the first thing to do is stay calm. No matter what the scammers may say, do not follow along with their demands. If they say you need to move your money urgently, or need to verify your personal information – including your bank account numbers, online banking login information, or your Social Security number – then it is the telltale sign they are a scammer. Never move any money to their “secure” bank account by sending cash, making a wire transfer, buying gift cards, or transferring cryptocurrency.
The best thing to do is to ignore messages from the scammers, and do not click or tap any links. If they are on the phone, hang up and do not answer any calls they may make.
If you are concerned about what the scammers are saying, always verify that it is the truth by calling the organization by dialing their direct line – never “redial” the scammer’s number even if you recognize it. Talking directly to the agency in question can resolve any concerns you may have and help you move on from the attempt.
What are the Next Steps I Should Take?
Once the threat is over, report the scam to the Federal Trade Commission at https://reportfraud.ftc.gov/. In your report, be as specific as possible about the scam, including what type of scam it was, who they were pretending to be, what they were asking for, and if you gave them any information. Having all of this information available will ultimately help law enforcement in investigating the scam.
If you are a victim of a scam, do not be ashamed or feel like you are alone. Anybody can become victimized – in fact, the FTC notes that in 2024, 44% of 20-29 year olds reported losing money to fraud more often than older people. Instead, call your local law enforcement agency to take a report of the crime and document your loss. This step is important as you work to recover your identity.
Next, contact your financial institutions to inform them of the fraud. They can help you secure your money and get new accounts when appropriate. Securing your accounts with your financial institution can help stop further problems.
While we may not be able to stop all scams, knowing the tell-tale signs can help you avoid fraud before it happens. Understanding what goes into a Phishing or Impersonations scam is a strong first step towards keeping your money and your identity safe.