Blog Highlights
- Social Engineering: We'll explain how criminals commonly use this technique to deceive unsuspecting people.
- Common Scams: You'll learn the warning signs of Bitcoin and romance scams.
- How to Outsmart Scammers: Find out what to do if you’re involved in a potential scam (how to outsmart fraudsters), how to report the incident, and how to begin the recovery process.
When an unsuspecting individual unknowingly gives their sensitive information or money to a scammer, the victim is often left with severe financial loss. Falling victim to a Bitcoin or romance scam may also lead to emotional distress and serious debt. Understanding the warning signs of a potential Bitcoin or romance scam is the first step in protecting your money and overall well-being.
Social Engineering (Psychological Manipulation)
Social engineering uses manipulation to influence people into performing a specific action or divulging sensitive information. Some of these tactics involve fear and threats so victims will immediately respond, while others use methods to build trust and unknowingly blindside their victim. Here are a few examples of fraudulent practices that criminals use to contact innocent people.
- Phishing: Emails appear to be from a reputable company, but aren't. Fake emails will often contain spelling or grammatical errors, or the sender’s email won't match the organization it’s claiming to represent.
- Smishing: These are fake text messages that appear to be from a well-known company or trusted source. They will typically present an urgent message asking you to respond or act immediately.
- Vishing: A fraudulent phone call where criminals ‘spoof’ their phone numbers on your caller ID to appear as a recognizable or trusted source. They use this deceptive practice to trick their victims into revealing personal information.
What You Need to Know About Bitcoin and Romance Scams
Whether the scam attempt uses a fear tactic to scare you into acting immediately or involves an elaborate scheme of manipulation, all scammers have the same end goal in mind – getting you to give them access to your hard-earned money.
Bitcoin Scams (Cryptocurrency Fraud)
Cryptocurrency (crypto) is a form of digital currency. It's not insured like the funds you have deposited in your local credit union. This makes cryptocurrency transactions are irreversible – if a criminal gains access to or you give them crypto, you will not get your money back.
To steer clear of Bitcoin scams here are some things to know.
- The organization claims to only accept cryptocurrency as payment. Only scammers demand payment in crypto.
- You’re given an offer with guaranteed profits or big returns. Only scammers will promise quick and easy ways to make money in crypto markets.
- Never withdraw cash in response to an unexpected call or message. Only scammers will demand that you withdraw funds from a Bitcoin ATM to send to them.
- Due your due diligence. Never invest in cryptocurrency without doing your research first. Always use reputable wallets with robust security features such as a private “key” to access your holdings.
- Practice good cyber habits using strong passwords, regularly update your software, and never share passwords or private keys with anyone.
Romance Scams
Online dating allows people to connect with one another from virtually anywhere in the world. Unfortunately, scammers use this practice to seek out and entrap the love and pockets of vulnerable individuals. Before falling head over heels for someone you met online, here are some things to know.
- Fake profiles are usually vague or have limited photos. Scammers will often impersonate someone else and will likely have only a few photos of the person they’re trying to be.
- They'll avoid video calls, or in-person meetings, making up excuses for always being unreachable. Scammers do not want to disclose their true identity.
- They quickly professes their love to you and will want to move quickly in the relationship.
- Scammers pressure you to take communications offline or off the app. This allows them to hide their identity and makes it more difficult to get caught.
- They ask you for money for a variety of reasons such as an "urgent" crisis, financial emergency, unexpected medical expenses, or for travel costs so they can come visit you.
Don't Get Scammed: Do This to Outsmart Potential Scammers
Scams are becoming more elaborate and criminals are always finding creative ways to perpetrate people’s wallets. By staying vigilant you CAN outsmart criminals. Follow these precautions to help keep your hard-earned money out of the wrong hands.
- If something sounds too good to be true, chances are, it probably is. Always verify identities, companies, and get a second opinion from someone you trust before taking any action.
- Scammers use urgency to pressure you into acting quickly so you don’t have time to think. Don't comply; take your time to investigate further.
- If someone claims to be from a credit union, bank, or government agency, do not give them your sensitive information. Verify the request by calling the number located on their official website.
- Legitimate organizations will never ask you to send cryptocurrency or gift cards as a form of payment. Don't send your hard-earned money through these untraditional methods.
What to Do If You Fall Victim to a Scam
If you suspect being involved in a scam, DO THIS IMMEDIATELY:
- Stop all contact with the person immediately. Do not click links or provide them with any information.
- File a complaint with the FTC (Federal Trade Commission), FBI’s Internet Crime Complaint Center (IC3), and your financial institution.
- If you’ve given someone access to your account, credit card or sent them money, immediately take steps to block access to your account or stop the transaction.
- Check your bank accounts, credit reports, and identity protection services for unauthorized activity. If you notice something suspicious, report it right away.
If It Seems to Good to Be True - Chances Are It's a Scam
By staying informed and questioning your suspicions, you can avoid becoming the next victim of a scam. Always trust your instincts – if something doesn’t feel right, it’s always worth double-checking.
Neither Peach State nor any of our third-party vendors (i.e.: Visa) will ever call, text, or email you asking to disclose account or other personal information. If you believe you were contacted from someone pretending to be from Peach State or another legitimate agency, please contact us immediately at 855.889.4328, stop by your local branch, or email us at psfcu@peachstatefcu.org.
Not all scams are easy to identify. Often times, when someone is involved in a potential scam, recognizing warning signs isn’t obvious. To help others from falling victim to a scam, share your knowledge and resources with them. For more information about avoiding fraud, scams and staying safe – visit the Fraud Prevention section of our Dollars and Sense blogs.
