Fraud Prevention: Spot and stop these 10 common scams

March is fraud prevention month. Fraudsters use tried and true methods to dupe people out of their money and information but also use cutting-edge technology like AI to perpetrate increasingly sophisticated scams. Such as pretending they are someone you know, faking celebrity endorsements, or creating websites that look like the real thing.

We recently provided tips on how to reduce fraud risk in a post titled “20 ways to protect your online security”.

How many times have you seen news reports about people who were scammed, and asked yourself how they fell for it?

Fraudsters know they won’t be successful most of the time, but it only takes a small percentage of their attempts to work for them to succeed.

Some fraudsters pretend they are someone you do business with. Like a credit card company or a bank. If they manage to contact someone who happens to use that card or bank, the recipient may think it is real.  After all, credit card companies do indeed contact you if they detect suspicious activity on your card. Or it might be a claim that there is a past-due bill that needs to be paid immediately.

The fraudster will then ask to “validate” your identity by asking for information they can use to perpetrate a fraud.  Sometimes it is an obvious fraud attempt. If there is any doubt, the best approach is to hang up or not respond and call your provider using a known number. Use the number on the back of your credit or debit card, or on a statement. Never use one given by the person contacting you, and don’t trust numbers that show up as sponsored ads on a Google search.

Scam indicators

1. Any request for account or personal information is suspicious. Don’t give that to anyone.

2. If the deal seems too good to be true, it’s probably a scam.

3. If they promise a high rate of return for an investment, it’s probably a scam.

4. If there is a false sense of urgency, it’s probably a scam.

5. If they discourage you from talking it over with an advisor or family member, it’s probably a scam.

6. If they discourage you from getting a second opinion or a quote from someone else, it’s probably a scam.

7. If they try to convince you that horrible things will happen if you don’t do as they suggest, it’s probably a scam.

8. If they ask you to send money, it’s probably a scam.

9. If you are asked to pay using gift cards or Bitcoin, it’s probably a scam.

10. If it is an unsolicited contact, there is a high risk it’s a scam.

David Canton is a business lawyer and trademark agent at Harrison Pensa with a practice focusing on technology, privacy law, technology companies and intellectual property. Connect with David on LinkedIn, Bluesky, and Twitter.