How to Spot and Avoid Fraud

How to Spot and Avoid Fraud

Cybercriminals may use current events to attempt personal fraud.

Story by Leonard Balsera

Sadly, whenever a financial news story gets national attention, scammers quickly move in. They take advantage of confusion around actual current events and have created new ways to target consumers.

Here are two recent and common examples: demands for extra fees on packages or promises of "relief checks" from the government. The idea is to make you panic or get you excited so you act without thinking.

The "unexpected fee" scam

This common scam involves a text message or email that seems to be from a major delivery service like UPS, FedEx or the U.S. Postal Service. The message claims that a package is stuck in customs and won't move until you pay a "tariff fee" or "duty tax."

The Better Business Bureau (BBB) warns that this is a typical phishing scheme adapted for today's news.

Here's the reality: in almost all cases, you do not pay tariffs directly to the government when shopping online. The retailer or importer takes care of these costs before you see the price. Also, legitimate shipping companies will never ask for immediate payment via a text message link or email link. Instead, they'll ask you to log in to an official account.

The "tariff relief check" scam

A related scam takes advantage of the universal hope for financial help. After recent news about potential "tariff dividends," scammers have set up fake websites for users to "claim" these checks. You might get an official-looking message that asks you to click on a link and verify your personal information (like your bank account or Social Security number) to "release" your funds.

But according to the Federal Trade Commission (FTC), the government does not send unsolicited texts or emails asking for private information to issue payments. And any message saying you must "act now" is likely a scam. Real government benefits typically come through official mail or well-known secure sites (like .gov websites) you log in to.

3 steps to stay safe

You can shield yourself from these schemes by adopting a "zero trust" approach for unexpected messages.

Verify the Source: If you get a text or email about a delayed package, ignore the link. Go directly to the retailer or shipper's website and log in to your account there instead or use the tracking number on the original shipment. If there's a real problem, it will be listed on the website.

Guard Your Data: Never give out your Social Security number, Medicare number, or banking information in response to an unsolicited request. No government agency will ever ask you to text this information.

Report It: If you see a scam, you can help others by reporting it to the FTC at ReportFraud.ftc.gov.

Remember, scammers rely on you being polite and reactive. By taking your time and verifying facts, you can protect your identity and savings. For more information on the latest consumer alerts, visit the Federal Trade Commission's consumer advice page.

Sources: Better Business Bureau; Federal Trade Commission.

Personal Finance