Scammers reach out to individuals who may be enticed by the promise that they can get their debts reduced or forgiven – for a steep upfront fee. Victims typically have high credit card debt, a large car loan or student loans. This relief or reduction of debt never comes, and the victim is robbed of their money.
Tip for spotting this scam: Reputable lenders do not require an upfront payment. If a fee is charged, it will always be deducted from the loan before it’s disbursed.
Mortgage Foreclosure Rescue Scams
Posing as lenders, loan servicers, etc., scammers will promise to refinance the mortgage, repair credit or stop a foreclosure. However, they’ll request payment for “processing fees” or trick victims into signing documents that transfer the property to these predatory companies.
Tip for spotting this scam: Be wary of companies that pressure you into deciding quickly or that say they can guarantee stopping a foreclosure.
Like an upfront fee scam, lending scams happen when a victim thinks they’re applying for a loan through an online lender or lender app. Scammers then ask for bank information to send a direct deposit. Oftentimes these lenders seek out the individual and don’t require a credit check, but they do require an upfront payment for things like “insurance”, “paperwork” or “processing fees.”
Tip for spotting this scam: Be cautious of any lenders who claim to guarantee a loan approval. Reputable lenders will have a set of requirements they abide by.
Government Impersonation Scammers
Scammers use scare tactics to force individuals to wire money, send a prepaid credit card, gift card or cashier’s check by pretending that they’re a trusted individual from a government agency like the Social Security Administration or the IRS. Victims are threatened with jail time, lawsuits or stopping their social security checks.
Tip for spotting this scam: Keep in mind that any government agency will contact you first via mail, not by phone or email.
Counterfeit Prescription Drug Scams
Scammers entice the elderly with promises of prescription or “miracle” drugs that can cure certain ailments at a majorly discounted rate but oftentimes the medication never arrives. Besides taking a hit to their financials, these scams may also send counterfeit drugs that could pose a health risk to the victim.
Tip for spotting this scam: If purchasing prescriptions online, make sure they’re approved by your physician and the National Association of Boards of Pharmacy.
Grandparent Scams
Scammers trick the victim by pretending to be family, a bail bondsman or an emergency service, notifying that their grandchildren are in dire need of money. They ask unsuspecting victims for funds to be sent through peer-to-peer payments, wire money, transfer funds or use other methods that are hard to trace. These scams can be sophisticated and seem very real. By using information from the internet, the scammer can sound very convincing.
Tip for spotting this scam: If you get a call from someone asking for money concerning a family member, hang up and call another family member, service or business using a number from an alternate, verifiable source. Contact local law enforcement to help verify and report fraud attempts.