Four Common Phone Scams

You need to be aware of when answering the phone from unknown numbers. Being diligent on the phone is one way of protecting yourself and your family from potential scams. Always ask questions and if you think it’s a scam – it probably is. Here are five common telephone scams; these common scams often target seniors, students, and first-generation Americans.

1. IRS/Tax Collection Scam – The caller will claim to be an agent or police officer from the Internal Revenue Service or Attorney General’s Office calling about a past due tax balance that is owed. The caller will tell the victim that unless the debt is paid immediately, a team of officers will come to the victim’s home that day to arrest the victim. The scammer will also request that the “IRS Tax Warrant” be paid with a Green Dot Card Money Card or Western Union MoneyGram.  These scammers often use caller ID spoofing so that the victim’s caller ID box says “Internal Revenue Service” or displays the phone number of the Internal Revenue Service. Sometimes scammers will also ask victims for personal information such as a Social Security number in order to commit identity theft.

2. Grandparent Scam – Typically, this scam comes in the form of an urgent phone call. The caller claims to be “your favorite grandson” or just says, “it’s me”… prompting the grandparent to supply the needed name. While the emergencies vary, the scenario is usually this: The “grandson” is out of town and needs money fast -- to make bail, or to pay for automobile repairs or medical expenses. The caller begs the grandparent not to tell his parents, just wire the money immediately. Scammers know that parents and grandparents fear a call that tells them their loved one is in trouble. Each year, thousands of Americans get caught in the Grandparent Scam. Increasingly, scammers use actual relatives’ names and information gleaned from social media and other internet sites.

3. Jury Duty Scam – The caller will claim to be an officer of the court and say there’s a warrant for the arrest of the victim for failing to report for jury duty. The scammer will also claim that there is a fine for failing to show up for jury duty, and that unless the fine is paid immediately, the police will be sent to the victim’s home to make an arrest. The scammer will request that the “Jury Duty Warrant” be paid with a Green Dot Card Money Card or Western Union MoneyGram. The scam has been around for years and surfaces periodically in New York.  In one recent case, the calls were traced to a Georgia prison.

4. Lottery Scam – The caller says you’ve won a foreign lottery and requests that you, as the “winner,” send a check or to wire money to cover taxes and fees.  Legitimate contests never ask for money up front. The caller may request your banking information in order to electronically direct deposit your winnings. This is an attempt to steal your identity and will wipe out your bank account.

The callers often use a name that sounds like a government agency or official-sounding authority. The name can be invented, like the “National Sweepstakes Bureau,” or “The National Consumer Protection Agency.” Sometimes they will use an actual name of a government agency, like the Federal Trade Commission or the Attorney General’s Office. The scammers claim that the government “oversees” the integrity of foreign lotteries. This is a scam.