By: Jeet Parikh
Scams. Most don’t realize how many people they affect. In 2019 alone, over 1.7 million Americans were reportedly victims of scams or frauds. In the US, about one in ten adults will fall victim to a scam each year, and older citizens are much more susceptible. Why? What makes scams so effective, and is there anything we can do about it?
Scammers are constantly evolving their techniques with novel technology and new ideas. However, they generally follow the same few patterns. Understanding how these work can help prevent yourself from falling victim.
One strategy used by scammers is establishing a connection. When scammers build camaraderie between them and the victim, the victim is less likely to question their actions. The scammers may use social media to learn about you particularly and use that to their advantage. For example, if someone is a pet enthusiast and an avid volunteer, the scammer may feign being an agent at a failing animal rescue facility that needs investment. Scammers also often use a technique known as reciprocity, where they supply a small favor to increase your chances of following through with the transaction. For example, they may offer a 50% discount for buying their product right then. The scammer not only gets their money, but also evades suspicion from the victim.
Another common strategy is source credibility. Appearing legitimate is a big part of convincing the victim. Scammers may create fake websites that make them appear like a real business. With email scams, the address may seem legit, but is actually slightly altered to mislead users. For example, “bankofamerca.com” may be used as a spoof for the real “bankofamerica.com.” These scams are known as phishing scams. By hiding under this seemingly authentic identity, the scammer is much more convincing.
Finally, scammers play with your emotions. They will commonly use guilt, fear, or generosity, three of the biggest emotional motivators. For example, a bank scam may claim that you received a deposit that was much too large—and that because of it, you took money away from the scammer’s family. The scammer’s emotional display of despair about how “his family will starve or how he will lose his job and have to live on the streets” evokes a strong feeling of guilt. The victim may think that sending the money back is the right thing to do.
Recipients of these messages should always be cautious when receiving requests for investments, donations, or fees. A clear red flag is when scammers may discourage you from verifying the validity of their call. Anyone who truly cared wouldn’t prohibit you from double-checking. Also, it’s recommended to check the business’s legitimacy by actually visiting the site. Do not click on the link—type out the URL by hand, as many malicious websites can be linked with different display text. Also, check what email address the message was sent from. If it is not an official company email, it is likely fraudulent. Lastly, do not make quick, rash financial decisions. Though the scammer may want the money right away, take time to verify the situation. Often, if the situation sounds too good to be true, then it probably is.
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What Did You Learn?
Questions:
What is one strategy used by scammers?
One strategy used by scammers is establishing a connection. When scammers build camaraderie between them and the victim, the victim is less likely to question their actions. The scammers may use social media to learn about you particularly and use that to their advantage. For example, if someone is a pet enthusiast and an avid volunteer, the scammer may feign being an agent at a failing animal rescue facility that needs investment. Scammers also often use a technique known as reciprocity, where they supply a small favor to increase your chances of following through with the transaction. For example, they may offer a 50% discount for buying their product right then. The scammer not only gets their money, but also evades suspicion from the victim.
How can you mitigate falling victim to scams?
Recipients of these messages should always be cautious when receiving requests for investments, donations, or fees. Scammers may discourage you from verifying the validity of their call. This is a red flag. Anyone who truly cared wouldn’t prohibit you from double-checking. Also, it’s recommended to check the business’s legitimacy by actually visiting the site. Do not click on the link—type out the URL by hand, as many malicious websites can be linked with different display text. Also, check what email address the message was sent from. If it is not an official company email, it is likely fraudulent. Lastly, do not make quick, rash financial decisions. Though the scammer may want the money right away, take time to verify the situation. Often, if the situation sounds too good to be true, then it probably is.