Scams & Fraud Flashcards
PII
Personal Identifiable Information.
It is any information that can identify you as an individual. PII includes your name, Social Security number, credit card number, bank account number, etc. When someone steals any of your PII they can use it for identity theft.
Identity theft & what it can cause
Identity theft happens when someone uses another person’s personal information, like their name, Social Security number, credit card number, or bank account number, to commit fraud or other crimes. It’s an invasion of privacy and can cause lots of problems for the person whose identity is stolen.
- Damage credit
- Steal money from your bank account & get credit card to buy things
- You might even have legal problems if the person who stole your identity uses it to commit crimes
- Can be very stressful
How identity thieves get your information
- Stealing your mail: if you receive bills or other important documents in the mail, thieves might be able to get your personal information from them
- Stealing your wallet: this gives them immediate access to your debit and credit cards, your driver’s license, or even your social security card.
- Data breaches: this is when a company’s computer systems are hacked and the hackers are able to access the company’s data. If the company has your personal information on file, the hackers might be able to get it. They will, then, sell your information to identity thieves or use your information themselves.
- Phishing scams: this is when someone calls you or sends you a fraudulent email or text message and tries to trick you into giving away your personal information.
Tips to protect your personal information
- Shred documents with personal information before you throw them away.
- Use strong passwords for your online accounts, and don’t use the same password for everything.
- Check your credit reports regularly to make sure there are no mistakes or signs of fraud.
- Lock your devices, like your phone and computer, with a password or fingerprint so others can’t access your information.
- Be careful about what you share online or over the phone. Don’t give out your personal information unless you’re sure it’s safe.
Investment scams
Investment scams happen when someone tricks you into investing your money in something that doesn’t exist or isn’t worth as much as they claim. The scammer might promise you high returns, like 50% or more, but in reality, they’re just taking your money.
Red flags: Watch out for promises of high returns, pressure to act quickly, and unsolicited offers. Always do your own research before investing your money.
Pyramid schemes
Pyramid schemes are a type of scam where people make money by recruiting others to join the scheme. The people at the top of the company, or pyramid, make money from the people below them, but eventually, the pyramid collapses, and most people lose their money.
Red flags: Be suspicious of opportunities that require you to recruit others to make money or ask for a large upfront or start-up fee.
Phishing scams
Phishing scams happen when someone pretends to be a trustworthy person or company to get your personal or financial information. They might send you an email, text, or call you, asking for things like your password, Social Security number, or bank account information.
Red flags: Be careful with unsolicited emails or messages that ask for personal information. Always verify the identity of the sender or caller before giving out any information.
Check cashing scams
A check cashing scam is when someone tricks you into cashing a fake check or accepting a fake electronic payment, and then they ask you to send them some of the money or use the money to buy something for them. When the bank finds out the check is fake, you’ll have to pay back the money.
Red flags: Beware of checks that come from people you don’t know or for amounts larger than you expect. Never send money to someone you don’t know or trust.
Home renovation scams
Home renovation scams happen when someone offers to do work on your house, like fixing your roof or painting, but they either don’t do the work or do a terrible job. They might ask for a large upfront payment and then disappear with your money.
Red flags: Be cautious of unsolicited offers for home repairs and always check the credibility of the contractor before giving them any money.
How to avoid falling for scams
- Do your research: Look up the company, person, or offer online to see if it’s legitimate. Check for reviews or scam warnings.
- Verify the identity and credibility of the sender or caller: If you receive an unsolicited email, call, or text message, don’t automatically trust it. Contact the company directly using a phone number or website you know is genuine.
- Never give out personal or financial information: Scammers often ask for this information to steal your identity or money. Keep your information safe and don’t share it with strangers.
- Report suspicious activity: If you think you’ve been targeted by a scam, report it to the authorities, like the Federal Trade Commission or your local police.
How to file a consumer complaint and follow up
Step 1: Contact the seller or provider first
Before you file a formal complaint, try to talk to the company that sold you the item or service. Maybe they made a mistake and will fix it for you. If they don’t help, you can move on to the next step.
Step 2: Gather evidence and documentation
Collect any information you have about the problem, like receipts, photos, or emails. This will help you show what happened and why you need help.
Step 3: Choose the right agency or authority
Now that you have your evidence, it’s time to find the right agency to help you. Different agencies handle different types of complaints.
Step 4: Fill out the complaint form or letter
Once you’ve chosen the right agency, it’s time to fill out the complaint form online or write a letter. Make sure to include all the important details and attach your evidence. Be clear and concise in explaining your issue.
BBB
Better Business Bureau (BBB): This agency helps with complaints about businesses in general.
CFPB
Consumer Financial Protection Bureau (CFPB): This agency focuses on complaints about financial products and services.
SSB
State Securities Board (SSB): This agency deals with complaints about investments and securities.
Possible outcomes and remedies
- refund, replacement, or repair for the product or service
- legal action might be taken against the seller or provider
- The agency may also find that the seller or provider was not at fault, or that the evidence you provided was not sufficient
