Staying a Step Ahead of Scammers

You may have heard about this happening to someone you know, or even experienced it firsthand. Your cell phone rings, and it looks like the call is coming from a local number. When you answer it, the caller sounds friendly and professional. After all, the purpose of their call is to “help you.”  They say they are from “your pharmacy” and need to update your insurance information in their computer to make sure that you continue to get your medications on time without interruption. They’ll simply need your Medicare number and date of birth to confirm everything on file is accurate. No! Hang up the phone!  Or perhaps you’ve gotten an email that appears to be from your utility company. The subject line reads “Urgent! Disconnection pending!” That will get your attention, but you should resist the urge to open it as it can be from a scammer who is attempting to steal your information or install malware onto your computer.  Or the scariest of all, you get a late-night phone call from your grandson. He’s clearly upset, and you can barely understand him. He’s been arrested and needs your help. He needs $8,000 in cash. Don’t worry, “his friend” will come pick it up from you. Only, it’s not your grandson on the phone, it’s an artificial intelligence (AI) simulation you’re speaking with, and you’re about to be robbed by a real criminal.

Computers and cell phones bring us tremendous convenience. Those of us who grew up before we had the power of the internet at our fingertips remember what it was like to be out of communication with our loved ones and how frustrating it could be without the ability to gain up-to-the-minute information about things like our bank accounts, news, weather and travel directions.  Yet, along with the instant access our phones and email bring, criminals have more ways they can do us harm. As these con artists continue to develop new ways to manipulate and steal, we must remain vigilant in protecting our information and ourselves.  While there are numerous scams that have become more common and can be easier to identify, the advancements in technology made with sophisticated programs like AI make it more important than ever to stay up to date on the latest variations on scams and how we can stay safe.

 

New “Emergency Scam” That Uses AI Technology

There is a new version of an older scam that is now making the rounds and is truly upsetting. In the past we’ve seen variations of emergency scams. They basically follow a formula:

  • You receive a call, text, or email claiming that a family member is in distress.
  • Either they were arrested, there is a medical emergency, or they have caused a terrible accident and hurt someone.
  • The scammer provides enough details such as names of family members or school information that it sounds convincing.
  • They need your money urgently!

This scam has been used to target grandparents and parents of children who are away at college. Scammers prey on your worst fears and may even back up their claims by texting you with images of your child’s (fake) mugshot. They warn you that if you don’t send money right away with an app like PayPal or Venmo, your loved one is headed to jail where they can get hurt.

Now, with the use of AI, criminals are making this scam even more awful.

You receive a phone call telling you that your family member has been kidnapped and you need to gather ransom money to pay for their release – and you need to do it FAST! As this version is similar to the “grandson that needs bail” scam, some people who are aware of this con may initially be more inclined to hang up and verify if their loved one is actually in a situation where they need help.

However, the new twist is the addition of AI to mimic the voice of your family member. Scammers can keep you engaged and fearful while heightening the sense of urgency to pay the ransom without careful consideration. With the use of an AI program, they can keep you on the phone talking to what may very realistically sound like your loved one while you gather and send money.

Variations of this include the use of deepfake video and AI images.

How can you avoid falling victim to this scam?

  • Avoid contact. Don’t answer calls from numbers that you do not recognize.
  • Create a family password. Do not share this word with anyone outside of your family. If you ever find yourself on a distressing call involving one of these scams and you are given the opportunity to speak with your loved one, ask for the password. A scammer will not be able to provide it. They may plea that they forgot it or use every tactic possible to continue stringing you along, but if they are unable to give you the password, you can safely disengage even if the voice may sound right.
  • Scammers are experts at creating a sense of urgency which can lead to hasty decisions. Maybe you are being targeted with an emergency scam that does not involve you being able to speak with your loved one. Disconnect and call your loved one directly to verify their safety.
  • Be mindful of the information about your family that is available online. Almost everyone has an online presence to some extent. Even if you’re not sharing details yourself, friends, family, or organizations might post pictures that could reveal personal information. These images can also easily be copied or manipulated by scammers.
  • Don’t send money. Scammers will typically ask for money in the form of prepaid debit or gift cards or payment apps such as PayPal, Venmo or Zelle. In many cases, once you have paid a scammer money it may not be possible to recover those funds.
  • In some cases, a scammer will inform you that someone is coming to your location to pick up cash. Lock your doors and call the police immediately.

 

In addition to scammers who want us to send them money, we must be on guard against those who are trying to steal our information. Identity theft is a huge problem in the United States, with the most recent Federal Trade Commission (FTC) statistics showing that there were more than 1 million identity theft reports filed in 2023.

Here are tips you can use to protect yourself against identity theft:  

  • Be highly selective about giving out your Social Security number. Consider the source of any request for your personal details. There are times when it may be appropriate to provide your Social Security number and other times when it’s not necessary.
    • For instance, if you have initiated an application for a mortgage, credit card, auto financing, or insurance, you will likely need to provide your Social Security number and birthdate so that your credit report can be reviewed.
    • A doctor’s office, urgent care facility, or hospital may ask for your Social Security number. They may use it for patient identification purposes or in case billing issues arise. You can urge them to use your insurance information alone, but bear in mind that if you choose not to provide your Social Security number, they are not required to treat you. Note that if you are entering a VA hospital, you must provide your Social Security number.
    • Don’t share your Social Security number with strangers over the phone or with online job websites.
  • Consider having multiple email addresses for designated purposes. With proper management, you can use these to more readily identify suspicious activity. For example, one email can be for banking or sensitive information, one can be for personal correspondence, one can be for shopping or signing up for email lists, and one can be dedicated for work. If an email supposedly from your utility company shows up in your work account, you can easily recognize it as a phishing attempt. You should report any suspicious messages to your email provider and if it was sent to your work email account, inform your IT department as well.
  • Shred thoroughly. Use a cross-cut or micro-cut shredder to reduce the possibility that thieves will gather information from your discarded mail and documents. Shred anything that contains personal information. This may include:
    • Bank and credit card statements
    • ATM receipts
    • Canceled or voided checks
    • Pay stubs
    • Credit applications and reports
    • Expired credit cards or old IDs
    • Tax information that’s over 7 years old
    • Medical prescription labels
    • Address labels from junk mail and magazine labels
    • Anything that may have sensitive information
  • Take advantage of the National Do Not Call Registry and opt out of unwanted solicitations.
    • You can also control the direct marketing materials you receive by signing up for an opt out preference service at DMA Choice.
    • Opt out of prescreened credit offers at OptOutPrescreen.com or by calling 888-5-OPTOUT (888-567-8688).
    • Alert your credit card companies that you do not want to have convenience checks mailed to you.
  • Guard your medical information. During open enrollment periods there may be an increase in attempts to gain access to your medical insurance information, but you should closely monitor this at all times.
    • Treat your insurance cards as you would a credit card. Do not lend your card to a friend and do not give out information over the phone unless you have initiated a call to a healthcare provider.
    • Review your Explanation of Benefits (EOB) statements. Do you recognize the charges? Does anything seem unfamiliar? Contact your insurance company immediately if you have any questions.
    • Monitor your medical records. Many doctors and hospitals now allow online portal access to your office notes, lab results, and communications with your provider. It can be helpful to print and keep a copy of these documents so that in the event that your medical insurance information is compromised, you will have accurate documentation to help prove and correct the fraud. If your healthcare provider does not offer online access to your records, request that they provide you with a copy.

 

Staying ahead of the ever-evolving cons and fraud that seem to lurk everywhere can feel like a fulltime job. Yet, with some diligence and commitment to safeguarding your personal information, it’s possible to limit your vulnerability to scammers. If you would like more information, please contact us.