Avoid Scams

Scam Prevention: How You Can Stay Safe & Secure

Knowing The Common Scam Signals Can Keep you From Becoming a Victim

It’s important to be aware that scammers and fraudsters are relentlessly finding new ways, day in and day out, to victimize us and run away with our hard-earned money. They’re not only innovative with their techniques as technology advances, but at the same time, the stories they employ to either overwhelm or entice us are constantly evolving.

We would like to especially highlight that senior citizens are particularly preyed on, but no matter who you are or your age group, you can get scammed if you’re not careful.

When it comes to avoiding scams, awareness is key, knowledge is imperative, and being skeptical is a weapon. Here are a few ways to avoid scams and fraud.

The Common Red Flags

There’s a reason why scammers and fraudsters need to be relentless. It’s because they know that not a lot of people, or only a very little percentage of who they target, will take the bait.

They spam us through emails, phone calls, instant messaging, or whatever channel they use to possibly reel someone in. To most people, their tactics are easily thwarted, but to those unaware, they work like a charm.

Don’t be a part of the percentage that gets hooked by their bait. Learn how to identify common red flags, like:

  • Get rich quick schemes

  • Too good to be true deals and promises

  • Pay now and swim in a ton of cash later offers

  • A family member is in trouble and they need money quick ruse

  • “I’m out of town or country and I need your help but will pay you later” narratives

  • The Jamaican lottery

  • The Nigerian prince scam

  • The Haitian relief scam

  • “You missed a jury summons” scripts

  • “You missed paying a loan and you’re in ‘big trouble’” scenarios

  • “We’re sending the sheriff to arrest you” threats

These are just some of the schemes employed by scammers, and identifying similar ones upon encounter is already a huge step towards avoiding financial scams.

Understand How They Manipulate

Scammers and fraudsters are essentially con artists. Con artists are successful in scamming people because they know what strings to pull, i.e. emotions. Please do take note that the goal when it comes to manipulating emotions (of would-be victims) is to overwhelm, if not paralyze their minds.

A scammer will do whatever they can to take away your logic and common sense. Once you are flooded with emotions, then your judgment is clouded, and you are more likely to act impulsively, carelessly, and make poor decisions.

A scammer will either use extreme excitement or overwhelming fear to try and control you. Don’t let them. Once you’re in a similar situation, be skeptical, be calm, and take control of your emotions.

The best defense when unsure in such situations is to hang up and dial the known hotline for what the caller claims to be representing. Most of the time, scammers will claim to be from the police, emergency response team, hospital, bank, immigration, law firm, or school.

They pose as someone in a position of authority or credibility to make you feel inferior and doubt yourself. Some may even threaten to arrest you if you don’t do as they bid. Don’t. Stand up to them and be wiser.

In any case, if you might think that the call you got is legitimate, then still don’t rush any judgment. Research the company’s real phone number and tell them that you’ll call them back with the information that they need.

Be Wary of the Overly Aggressive Caller

One way that scammers and fraudsters can overwhelm you with excitement is by concocting a dire need for urgency.

One of the best ways for scammers to execute such a tactic is via a phone call. Text messages, chat messages, and emails can be easily disregarded, so the urgency ploy might not be as effective. With phone calls, they can be.

The false sense of urgency is oftentimes created by the scammer through a scarcity ruse. You’ll often hear lines like “This is your last chance or it’s going to be sold out fast.”

This ruse will occasionally be paired up with a false social consensus such as “This product was brought by the leading authority in this field or industry” talking points. They may also use known brands, companies, or businesses to make them seem credible and legit.

It won’t end there, either. Aside from pestering you to purchase what they offer, they will then be very aggressive when it comes to asking for your credit card or bank account information.

This is the worst situation to give these details out. Never give your credit card or bank account information, not even your social security number, when you feel like you are forced to do so. A legit party needing such information will be sensitive to your position and treat it as a delicate situation in a professional manner.

EXTRA TIP: Some of these “urgency” scams will be found in the spam folder of your email. They are called phishing emails. Please, if anything is dubious and is already in your spam folder, delete it right away. These emails are in your spam folder for a reason and your email provider has already imposed very helpful security measures to protect you.

Know That Not All Scam and Fraudulent Attempts Are Loud and Aggressive

Please keep in mind that not all scams are loud, active, and aggressive. Some are laid traps, passive, and subtle. Keeping that in mind will have your guard up every time.

The internet, as we all know, is a scammer and fraudster’s playground. Security protocols can only do so much. If we can’t protect ourselves then we’ll still fall for these scams.

The phishing emails we mentioned above are examples of such tactics. Fraudulent websites are a huge part of this ruse, as well. You can get scammed by websites that lead you to harmful sites, leading you to either download a virus to your computer or input your credit card or bank account information voluntarily.

Your anti-virus software can only do so much. Your awareness of these schemes is still your best defense against them. A computer virus can easily take your computer files hostage, while the scammers threaten to wipe out your files or use sensitive information against you.

Inputting your credit card or bank information online may lead to fraudsters emptying your account or stealing your identity. Know that threats are everywhere and always protect yourself.

Familiarize Yourself With All Types of Fraudulent Activities

There are multiple types of fraud committed by perpetrators every day. Having even the basic knowledge of these can go a long way for your protection.

We already mentioned identity theft. This happens when someone steals personal information and uses it to gain access to someone else’s financials. Then, you have mortgage fraud that often targets desperate homeowners. The FBI deals with this kind of fraudulent activity by the thousands yearly.

Then, there’s the very common credit and debit card fraud and debt collection fraud. Be wary of anyone asking you to pay for something with a gift card or wire transfer, as these transactions are hard to trace and can be even harder to get your money back.

Lastly, for some time now, fake charities have been organized by dubious individuals and “organizations” to scam people into giving their money voluntarily for a cause that doesn’t even exist.

Think of any other scheme and chances are, there’s probably a scammer doing it already.

Old But Definitely Not Gold Tactics

We just want to remind everyone about age-old tactics that scammers still use nowadays. Unfortunately, a good amount of people are still falling for these schemes.

We’re talking about no other than the lottery and phantom riches schemes. It’s pretty straightforward, too. You’ll get a call, message, or email telling you that you won the lottery or that you were visitor X on a website and you won a huge amount of money.

Don’t believe them, none of them are true. Especially if you didn’t sign up or join anything remotely similar. Also, take note of phantom riches scenarios where suddenly you have a rich uncle or great grandfather who died and left you a ton of cash.

These plots only happen in the movies.

Conclusion

Knowing how scammers and fraudsters operate is how we make sure that we are one step ahead of them. We need to educate ourselves so we don’t fall prey to these people.

There’s a reason why experts advise people to be skeptical when on the internet, receiving a random call, or getting dubious messages. If we fall for misinformation on a daily basis due to fake news spreading uncontrollably, then it’s not far-fetched that we may encounter and fall for a financial scam.

Be vigilant and on the lookout for these fraudsters to protect yourself and your loved ones. Part two of this series, How to Minimize the Impact of Being a Victim of Fraud, provides great information for individuals that have fallen prey to scams or had their identity stolen.

About the Author

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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
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  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
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You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).