What you need to know about scams
When it comes to consumer fraud in the United States, the Federal Trade Commission has some good and bad news. The good: fraud appears to be declining. In 2015, fraudsters collected less than the $1.7 billion scammed in 2014. The bad: in 2015, fraud still cost consumers more than $765 million, with victims paying an average of about $1,100.
Although fraudsters are constantly revising their scams, some things remain consistent. Fraudsters almost always seek money - either directly or indirectly - by stealing personal information. The FTC reports that 75 percent of scams start through phone contact, followed by 8 percent through email. Fraudsters also try to capitalize on emotions - from empathy to fear. A good rule of thumb is that if an offer sounds too good to be true, then it could be a scam.
Know your Scams
Debt Relief: Scammers know that if you have debt, you want to get rid of it. They can take advantage by offering "services" to reduce or eliminate balances, interest rates or fees.
• Warning signs - Describes a "new government program" to bail you out of debt, requires payment before helping you, guarantees to make your debt disappear, advises to ignore your creditors.
• What to do - If you have trouble making payments, contact your lenders to discuss repayment options.
Phantom Debt: You know you don't owe any debts, but receive calls or official-looking letters claiming you face consequences if you don't pay.
• Warning signs - "Officials" make threats, demand money wires or money cards, or provide phony contact information for judge, government agency or office they claim to represent.
• What to do - Ask for a written validation notice with details of the alleged debt, including creditor, amount and your rights under the Fair Debt Collection Practices Act. Do not provide personal information. Contact the creditor directly to verify legitimacy of the claim.
Charity: Scammers take advantage of your desire to help others and promise donations will benefit a charity or victims of a natural disaster, but instead they keep it for themselves.
• Warning signs - Pressures you to donate immediately, requests cash instead of a check or credit card, name does not match that of an established charity organization.
• What to do - Ask for detailed information about the organization and do not share information until you have researched the charity. Check with the Better Business Bureau, GuideStar.org or Charity Watch to verify the charity.
IRS Tax: Scammers impersonate the IRS to ask for personal financial information, then steal money and identity.
• Warning signs - Contact via email, text message or social media requesting personal information. Demands immediate payment with money orders, prepaid debit cards or reloadable gift cards over the phone, threatens lawsuits or imprisonment.
• What to do - Do not click on any links. Forward emails to phishing@irs.gov or call the IRS at 800-829-1040.
Lottery: Scammers say you have won money and simply need to pay taxes and fees upfront, usually wired to a foreign country.
• Warning Signs - You didn't purchase a lottery ticket and the offer seems too good to be true.
• What to do - Never send money or share personal information on the phone or internet with anyone you do not know personally.
Another good way to protect yourself is learning how different companies or government agencies communicate.
For example, government agencies typically contact you through the U.S. Postal Service, so a phone call should put you on alert. Another safety measure is to not answer calls from numbers you do not recognize. Answering a spam phone call signals the scammer that there is a human - and potential fraud target - tied to your phone number. Don't answer, let it ring.
• Trevor Buxton is a fraud awareness, communications manager and certified fraud examiner with PNC Bank.