Cell phone scams are certainly nothing new. Yet, despite years of warnings and increased public awareness, people continue to fall victim to sophisticated and sometimes devastating scams.
The reality is that scammers do not necessarily need sophisticated technology or advanced equipment. Often, all they need is persistence, a convincing story, and the right person to answer the phone.
In the video accompanying this article, three alleged perpetrators are reportedly wanted in connection with a federal crime. The victim openly acknowledges that he overlooked several warning signs during the interaction. Those warning signs are worth discussing because recognizing them could potentially prevent someone else from experiencing the same situation.
After more than 20 years of helping people with their technology, I have personally witnessed numerous scams affecting my customers. In many cases, I have warned people about the importance of recognizing the “red flags” associated with suspicious phone calls, emails, text messages, and other communications.
Unfortunately, scammers now have another tool at their disposal: artificial intelligence. AI can make fraudulent communications more convincing, personalized, and difficult to distinguish from legitimate communications. This makes it even more important to slow down and independently verify who you are dealing with before taking any action.
One Warning Sign Could Have Prevented This
In the video, the victim explains that he initially attempted to use Zelle to transfer money. His bank stopped the transaction.
That should have been a significant warning sign.
When a financial institution blocks a transaction because it appears suspicious, that is a reason to stop and independently verify what is happening—not simply look for another way to complete the transaction.
Unfortunately, the scammers continued working with the victim and eventually convinced him to use another method of transferring money. According to the account presented in the video, three wire transfers were ultimately completed.
The result was approximately $73,000 lost.
This is an important reminder: when something goes wrong with a financial transaction at the direction of someone who contacted you unexpectedly, stop. Do not allow the person on the other end of the phone to convince you to find another way to send the money.
What Should You Watch For?
Here are several basic precautions that can help you recognize and avoid a potential scam.
1. Don’t Automatically Trust the Person Calling You
This doesn’t mean that you should be suspicious of everyone you encounter. It means you should never assume that someone is legitimate simply because they sound professional, know some information about you, or claim to represent your bank, credit-card company, government agency, technology company, or another organization.
If someone unexpectedly contacts you and begins discussing your finances, account security, passwords, identification, or money transfers, slow down and independently verify the situation.
2. Don’t Rely on Caller ID
Caller ID is useful, but it should not be treated as proof that a caller is legitimate. Scammers can manipulate caller-ID information so that a fraudulent call appears to come from a legitimate company or telephone number.
If you receive an unexpected call from your bank or another business, consider allowing it to go to voicemail.
If the message claims that there is a problem with your account, don’t automatically call the number provided in the message. Instead, locate the organization’s legitimate contact information independently.
3. Never Use a Callback Number Provided by a Suspicious Caller
If someone claims to be from your bank and gives you a telephone number to call, don’t assume that number is legitimate simply because it matches the number displayed on your caller ID.
Instead, obtain the legitimate customer-service number independently.
For a bank, you can typically find the appropriate telephone number on your bank statement, on the back of your debit or credit card, or through the financial institution’s official website or mobile application.
4. Be Extremely Cautious When Someone Tells You to Move Your Money
A major warning sign is being instructed to move money because someone claims your account is compromised, your money is in danger, or you need to “protect” your funds.
Scammers may instruct victims to purchase gift cards, send cryptocurrency, make wire transfers, or use payment services such as Zelle or other payment applications.
Stop and verify before doing anything.
If you are dealing with a legitimate financial institution, contact the institution yourself using independently verified contact information rather than continuing to follow instructions from an unexpected caller.
5. Don’t Provide Sensitive Information to an Unexpected Caller
If someone unexpectedly asks for your Social Security number, account number, password, security code, PIN, credit-card information, or other sensitive information, don’t provide it simply because the caller claims to represent a legitimate organization.
Hang up and contact the organization directly using a trusted telephone number or official website.
Talk to Your Family About Scams
One of the most important things you can do is talk about these scams with your family, friends, and loved ones.
People who are less comfortable with smartphones, online banking, payment applications, and other modern technology may be particularly vulnerable to scams that rely on unfamiliar technology or confusing instructions. However, it is important to remember that anyone can become a victim. Scammers target people of all ages and backgrounds.
If you have a parent, grandparent, friend, or loved one who may be less comfortable with technology, encourage them to talk with you before taking action when they receive a suspicious phone call or message.
Make it clear that there is no embarrassment in asking for help.
If someone receives a call claiming that their bank account is in jeopardy, encourage them to hang up and contact you or another trusted person before doing anything.
A few minutes of verification could potentially prevent the loss of someone’s life savings.
I have seen situations like this affect people personally, and unfortunately, recovering stolen money is not always possible.
If You Think You’ve Been Targeted
If you believe you have been contacted by a scammer:
- Stop communicating with the suspected scammer.
- Do not make additional payments or transfers.
- Contact your bank or credit-card company immediately using a trusted telephone number.
- If you provided passwords or other account credentials, change them and review your accounts for suspicious activity.
- Keep records of the communications, telephone numbers, emails, text messages, and transactions associated with the scam.
- Report the scam to the Federal Trade Commission: ReportFraud.ftc.gov
Consider Additional Protection
You may also want to investigate credit-monitoring and identity-theft protection services. Companies such as LifeLock and Aura offer services in this area.
I personally use Aura and have been satisfied with my experience. However, these services should be considered an additional layer of protection—not a substitute for carefully evaluating unexpected calls, messages, and requests for money or sensitive information.
The Most Important Rule
The most important thing you can do when something doesn’t seem right is stop and verify.
Don’t let someone on the telephone rush you into making a financial decision.
Don’t be embarrassed to hang up.
Don’t assume that Caller ID proves who is calling.
And don’t be afraid to contact a trusted family member, friend, or professional for a second opinion.
When your money or personal information is involved, taking a few extra minutes to verify the situation can make all the difference.