We probably all know a family member, friend, or co-worker who has been the victim of an online scam or identity theft.  The types of scams can vary, but they all begin with an attempt to reel in a victim with a convincing story, then take advantage of a person’s trust. The best advice is to be skeptical of any unsolicited call, email, or text message. The following outlines some of the common scams that we see in Monmouth County, along with steps that you can take to prevent becoming a victim, as well as what to do if you become one.  If you have elderly relatives or friends, take a few minutes to discuss this with them. Those few minutes could end up saving them thousands of dollars. Even if law enforcement can track down and prosecute the fraudsters, the likelihood of getting your money back is often very low. Prevention is one of the most effective tools we have to keep your hard-earned money in your pocket.

Bail Scams

An unsolicited caller pretending to be a court employee or bail officer tells you that your son, daughter, grandchild, or other family member has been arrested, and you need to put up bail money to get them out of jail. A common story is that your grandson was arrested for DWI after hitting a pregnant woman. The caller tells you to take out a large amount of cash from your bank and wait for an officer to pick it up.

These calls are scams. New Jersey no longer has cash bail. Whether someone is released from jail is determined by a formula used by a judge based on a number of factors. If you receive one of these calls asking for cash to bail someone out, it is a scam.

IRS or Other Government Agency Scams

The caller may identify as an IRS agent or other government official claiming you owe taxes or there is a warrant out for your arrest. The only way to “satisfy” the claim or warrant is to make a payment, which can take the form of cash, gift card, cryptocurrency, or a wire transfer. All of these should be immediate red flags. The government will never request or demand payment via a large sum of cash, gift cards, cryptocurrency, or wire transfers.

Bank Scams

You receive a call from someone who says they are from your bank, and your account has been frozen by the government for back taxes or money laundering. In order to protect your money, the caller convinces you to transfer money from your account to another account, often at another bank. DO NOT transfer your money to another account in response to an unsolicited call. Hang up and call the bank directly from the phone number on your bank statement or from the official bank website, or go down to your local branch and speak with a customer representative in person if you suspect there is an issue with your account.

Amazon/Online Vendor Scams

You receive a text or email indicating that your approval is needed for a purchase you didn’t make. You then click on a link in the text or email, which takes you to a website that appears to be legitimate. Once you enter your login information on the fraudulent site, your information is stolen, now allowing the fraudster to log in directly into your account.

Do not click on any links in unsolicited text messages or emails. Do not rely on phone numbers provided in the text or email. If you want to check your account, log in directly on the store app or website.

Employment Scams

You receive an offer for employment, often in sales or investments. There will be a day or two of “training.” At some point, the “employer” will give you an excuse for you to use your own personal bank account, or to open a brand-new account, to receive and/or send money. This should be an immediate red flag. They may tell you that your account will be receiving money and you are then to withdraw cash and give it to someone, or to transfer it to another account. The funds that you are receiving are stolen funds from someone else who has been scammed. They may also tell you that you owe taxes or penalties for doing something wrong, and convince you to transfer your own money to another account to “satisfy” the taxes or penalties.

Do not use your personal bank account or open a new account as part of your “employment” with a new job. Do not transfer your own personal funds. A legitimate company will not ask you to do these things.

Romance Scams

You meet someone online and become friendly, but you have never met. These scammers are smooth-talking and rely on your trust. At some point, they will come up with a story and make a request for money. It could be that they are out of the country and need assistance to return home, or they were illegally detained and need bail. You send the money and then never hear from them again, or they continue to ask for more money. Be very skeptical of sending money to people you have met online, and never in person. Banks will very rarely reimburse you for funds that you have knowingly and willingly transferred to someone else, even if the story behind it is a scam.

Check Washing

You drop a check in the mail and later find out that the anticipated recipient never received the check, and that the check was "washed" with a new payee and amount, with those funds now stolen from your bank account. Checks can be stolen anywhere: directly from mailboxes, by a postal employee, or right out of your mailbox after mail was delivered. There is no way to guarantee that your check will end up where it is supposed to go, but there are steps you can take to reduce risk. Don’t use mailbox drop-offs on the street. While convenient, they are a prime spot for mail theft. Drop mail off directly inside the post office. It may add some time to your day, but it could save you money (and even more time that will be required to try to clear up the stolen check). If one of your checks was stolen and washed, contact your bank and the police right away. Also, consider using online banking, rather than checks.

Business Scams

Businesses are also susceptible to online scams. Many are the result of an email hack. Your company may then receive an email from a sender purporting to be your landlord or vendor, asking to change banking information for receipt of payment. It may be from an employee, asking to change the bank account for their direct deposit. Relying on the email, which appears to be legitimate, you change the bank account information and send payment, which goes to the scammer’s account.

If you receive a request to change banking information from a longstanding vendor, landlord, or an employee, follow up with the company or employee directly to confirm the change before sending payment. The few minutes it takes to do so may end up saving a lot of money down the road.

Artificial Intelligence (AI) Scams 

Be aware that scammers are using AI to impersonate family and friends by voice cloning, creating images, and manipulating videos posted on social media. Voice cloning can be used to make it sound like a relative or friend is calling. The scammer will be looking for money or personal information. They will typically call saying they urgently need money or personal information, pressuring you to act quickly. For example, the caller may say that a loved one has been arrested or has been in an accident. AI can also be used to create videos to further a romance scam. It can even be used to create images for a fake listing of a rental property.

If the caller is requesting payment via wire transfer, gift card, person-to-person payment (such as Venmo or Paypal), or cryptocurrency, be skeptical. Ask questions for which only the family member or friend would know the answers. In these scenarios, don’t rely on caller ID, which can be faked or altered. Call the family member or friend back directly with a known phone number; don’t simply redial the number that called you.

Debt Collection/Settlement Scams

Someone may contact you claiming that you owe a debt. The caller may not only be looking to scam you out of money, but also trying to obtain your personal identifying information. Real debt collectors probably have much of your information already, so they shouldn’t be asking for you to provide it. If you receive a call like this out of the blue, request all of their company’s information, to include name, address, phone number, and website. Obtain a copy of your credit report to determine if there are any outstanding debts. If the caller is pressuring you to get payment quickly, be skeptical. As with other scams, if the caller is requesting payment via wire transfer, gift card, person-to-person payment (such as Venmo or PayPal), or cryptocurrency, you should be suspicious.

Class-action settlements can also be used as scams, for money and your personal identifying information. If you receive an email that you are party to a class-action lawsuit, do some research online to see if it is legitimate. If the email is vague on details, or promising a large payout, be skeptical. Many class-action suits result in small payouts, or perhaps credit monitoring for one year, for class members. Some class-action scams may request you make payment in order to become a class member with promises of a larger payout upon its conclusion. Requests for payments up front in these scenarios are indicative of a scam.

Lottery/Prize Scams

You may receive a call saying that you won a prize, lottery, or sweepstakes. They may ask you to make payment for taxes or processing fees. They may ask for personal or financial information such as a bank account or credit-card number. They say if you don’t make payment or provide the information, you won’t receive the prize. There will likely be a sense of urgency in making payment or providing the information. Be skeptical of these calls, particularly if it’s for a prize or sweepstakes that you never applied for. If it’s out of the blue, and too good to be true, it’s most likely a scam.

A variation of the scam may include the scammer sending you a check as your “winnings,” with a request that you send some of the money back. This results in you sending some of your own money to the scammer, and then later finding out that the check was fraudulent or stolen. If you are not sure whether a prize is legitimate, do some research online for more information.

Identity Theft and Internet Fraud Precautions

Steps that you can take to protect yourself from becoming a victim of identity theft or internet fraud:

  1. Do not click on any links or call phone numbers in an unsolicited text or email.
  2. If you receive an unsolicited phone call from a bank or business, do not give out your personal identifying information, such as date of birth, address, social security number, or usernames and passwords.
  3. Never transfer money to another person, account, or digital wallet to “resolve a fraud issue” or “protect your account.”
  4. To check on your accounts, sign in directly on the company app or website, and use the phone numbers from your account statements.
  5. Set up alerts to receive notifications of unusual activity.
  6. Review your bank and credit-card statements for unauthorized activity.
  7. Review your credit report periodically to check for any unauthorized accounts that may have been opened without your knowledge.
  8. Enroll in credit monitoring, which can send you alerts for any changes to your credit report.
  9. Check your homeowner’s or renter’s insurance to see if you have identity theft coverage, and understand what is covered, or consult with your agent to inquire about adding a rider to your policy. While this type of insurance will not reimburse your financial loss from a theft, it can cover costs that are associated with trying to get your identity back and repair your credit report and score.
  10. Be mindful of places where your credit/debit card is taken from you for a period of time to make payment, such as restaurants and gas stations. These are common locations for skimmers to steal your information. Consider using cash, which will also save some money on credit-card fees.
  11. Back up your photos and videos, as well as important financial and work documents from your computer to an external hard drive, so in the event your computer is hacked, you’re not tempted to pay the ransom for them to give you back control of your computer.

If you suspect you are a victim of identity theft or online fraud:

  1. Report it to your bank or credit-card company, and the police, immediately. The longer you wait to report, the less chance you will have to try to recover stolen funds.
  2. Call the bank or credit-card company using the phone number provided on the back of your card or account statement, or directly from the website. Do not rely on any phone numbers provided in an unsolicited email or text.
  3. Go to the Federal Trade Commission website, ftc.gov, to learn more about identity fraud and credit freezes.
  4. Request a copy of your credit report at AnnualCreditReport.com to review for any fraudulent activity in your name.
  5. Save, and print out, if possible, all communications (emails, text messages, phone call logs) that you had with the fraudster to provide to the police.