Although this time of year is affectionately known to most as “the season of giving,” that title doesn’t ring true for scammers looking to make a quick buck… or rather, thousands of bucks.

Just this week, local police departments have issued alerts of recurring financial scams which have swindled victims out of amounts ranging from $10,000 up to $100,000+.  So, while you’re getting swept up in the hustle and bustle of the holiday season, don’t forget to remain diligent in protecting your finances by thinking through any unsolicited requests for money before acting on them.

THE SCAMS

There have been reports of a few different types of scams.  The first is a “tech scam” where the bad guys contact a victim about a supposed virus on their computer, convincing them to download a piece of software which ends up being a type of “remote viewer.” They then ask the victim to access their online bank accounts so they can see balances and potentially even transfer funds out of the victim’s accounts using the downloaded software.

There have been other instances of scammers posing as a representative from your bank, a representative from Publisher’s Clearing House claiming you’ve won $2 million and you have to pay a fee to access your winnings, a tech support person – as mentioned above, someone claiming that you had a fraudulent charge for a purchase or a scammer stating they’re from the IRS or Federal Law Enforcement.

After that laundry list, you might be thinking, “Can I trust ANYONE on the phone anymore?”  Unfortunately, the answer is no… not until you’re absolutely certain you know who you’re speaking with on the other end.

HOW THEY WORK

These scams are usually convincing and well thought out. The victim receives a phone call from the scammer posing as one of the false identities mentioned above and begins communicating with them.  The scammer describes the “issue” that will require payment in a confident, convincing and urgent manner whether it be fraudulent charges posted to your bank account, a nasty computer virus, or back taxes owed to the IRS.  They instruct the victim to withdraw a large sum of money from their bank account to fix “the issue,” usually $10,000+, and they arrange for an “official” to meet the victim at their personal residence to pick up the money.  The victim is given a password over the phone that will be repeated by the person picking up the money to confirm their legitimacy.  The scammer may even ask victims to wrap the money in a very specific way and bring it to UPS to be shipped.

After the money is picked up or shipped, the victim is contacted again by the scammers and instructed to withdraw another $10,000+ the following day.  The scam will often continue until the victim catches on or runs out of money.

THINK BEFORE YOU ACT

While some of this may seem outlandish or easy to spot, scammers can be surprisingly convincing and extremely persistent. If you experience a situation similar to any of those mentioned above, do NOT give out any personal information, driver’s license or passport numbers, social security numbers, or bank account information. Do not under any circumstance give away any money or agree to an in-person meeting.  Once funds are handed over, it’s extremely difficult to recover them.

WHO TO CONTACT

If you suspect you’ve been contacted by a scammer, call the non-emergency number of your local police department or contact your bank directly to ensure you’re properly safeguarding your accounts.

If you have elderly acquaintances or loved ones, please educate them about potential scams and red flags they should watch out for.

Want to learn more about common financial scams?

Check out our fraud page