How to Identify Scams and Prevent Them

When we think of people falling for scams, you might believe it only happens to the older generations. This couldn't be further from the truth—people of all ages get scammed all the time, and younger people actually report falling for scams more than older people. What's clear is that regardless of your age, learning about scams is important for everyone.

If you or someone else has ever fallen for a scam, remember you are not alone. Part of what makes scammers so good at what they do is their ability to fluster and confuse you. After they upset you, it's much easier to trick you into doing what they want when you normally would never fall for it. In these situations, take a deep breath and remember these common signs of a scam.

How to Spot a Scam—7 Signs

1. They Want you to Act NOW
   If you had the time to think, you'd likely see through the lies quickly. The solution for fraudsters is to make you get going! No matter what they say, there is always time to think things through. If you're on the phone, hang up immediately and do your research. If they say they're calling from your bank, for example, go to your bank's website to get the correct phone number and call them to verify what you've been told. Whatever they say is happening, always verify details using contact information you know is legitimate, and never use contact information any potential scammer is trying to give you.
2. The Sender's Email Address Looks Wrong
   Scammers are getting more and more creative all the time. Always look at the email address if something (anything) seems off to you. For example, ABC Bank's legitimate email address might be person@abcbank.com, but when you look at the email address, it actually says person@abcbamk.com or person@obcbank.com. This is a common tactic, but if you look closely, you'll see the whole thing is a fake.
3. They're Asking for Private Financial Information or Codes
   Your bank will never call you to ask for any username, password, code, or passcode. Sometimes, things do come up with your account (like a potentially fraudulent purchase on your debit or credit card), but you will always have at least some time to visit your local branch in person or call them at the phone number listed on their site to find out more. They will understand and appreciate your precaution, so don't worry about seeming rude. If anyone on the phone is upset that you want to visit a branch or call them back at their listed phone number, that's a huge red flag!
4. You Are Not Expecting Anyone to Reach Out to You
   Have you ever won a contest you don't remember entering? Or, is there suddenly a huge problem you had no idea existed? Chances are the people contacting you are trying to scam you. Emergencies do happen, but in general, you should at least have enough time to use the contact information you know is legitimate (again, get that from the website directly, never anything a potential scammer tries to give you) and verify what's happening.
5. Their Instructions to Pay Them Seem Strange
   Unlike your niece or nephew, the IRS does not want gift cards, and they certainly don't need a same-day wire. Asking for payment via cryptocurrency is also a sign of a scam.
6. They Want You to Send Them Money Back Because They "Overpaid"
   This is probably the biggest indicator of a scam. If you ever receive payment for anything, whether for a job, buying supplies for a brand-new job you've been offered, or something else, and they "accidentally" overpaid on the check, this is your sign it's a scam. If you deposit this check, let's say it's $3,000, and the scammer wants you to send them back $800. Your bank may make the full amount of the check deposit available in your account, but that doesn't mean the check is legit. It takes time for banks to communicate, so your bank may find out days later that the check you deposited is fraudulent. By the time you're notified, you've already sent the scammer $800, and now your bank has taken the money back out of your account because the check was bad. Now, your account is $800 less, in addition to whatever you may have spent before the check was returned.
7. It Seems Too Good to be True
   You know the old saying…if it seems too good to be true, it probably is. Scammers might say you've won the lottery or sweepstakes but must pay a fee to get your winnings. Especially crushing are the job offer scams—you believe you've finally gotten a dream offer, but the "recruiter" is only pretending to work for the company. Whatever the situation, take the time to think it through and talk it over with someone you trust to see what they think before doing anything.
   Remember, you should never have to pay to get a prize. This might sound like a broken record, but there will always be time to verify the information and call the company directly to make sure it's true or confirm your suspicions.

Stop and Talk to Someone You Trust

Whether it's a friend, family member, or someone else, talking with someone is essential. Since they are not directly involved, they can review what was said or sent to you and look at the whole situation to help you figure out if this is legitimate or a scam. WaFd Bank also offers a scam checker through our partnership with Banzai! to help you if you can't get ahold of someone immediately. We recommend reviewing the questions before a scam happens so you're more prepared to spot when (not if) you're presented with one.

When You Do Spot a Scam Report It

This way, police and other government agencies have a much better chance of catching the scammers and preventing them from taking advantage of others who could lose money to these scams. You can file a report to the Federal Trade Commission at reportfraud.ftc.gov.

To stay informed about recent scams, you can also sign up for consumer alerts directly from the FTC to help protect yourself and those you know.

What to Do if You Were Scammed

First, don't feel bad about what happened, and move forward knowing you've learned a thing or two! Next, file a report with the FTC to help stop them from scamming others. Last but certainly not least, it's time for some damage control. The FTC can help you with their What to Do If You Were Scammed page that lists next steps (and legitimate contact information!) so you can move forward and protect yourself from losing anything else.

How to Avoid Scams Before They Happen

Part of what makes scammers so effective is their ability to fluster and confuse you, tricking you into doing what they want. According to the FTC, thousands of people fall for scams of one kind or another every single day.

• Block Unwanted Calls, Texts, and Emails
  Only give your information out when you get a request you're expecting. Even then, look at it carefully to ensure it's legitimate and not a scam that's coming at an especially bad time.
• Set Up an Email Address Specifically for Important Things
  Having two email inboxes can be a chore, but it can help you quickly see if any emails you get are scams. You'll only use your primary email address for things like bank accounts, investments, insurance, bills, and similar purposes. Signing up for coupons, rewards programs, and similar things is for your secondary email address. This way, you can ensure your primary email address is secure since it's less likely that fraudsters will get ahold of it to send you bogus emails. While this isn't foolproof, it will make it easier to spot a scam since you can compare suspicious emails to ones you know are legitimate.
• Use Secure Passwords
  We're sure this isn't the first time you've heard this one, but that's because it's a significant contributor to your overall security. Never use a password more than once, especially if that account contains sensitive information like your debit or credit card number. Consider using a password manager instead, which is a secure way to keep all your passwords safe so you don't have to remember hundreds of unique logins. Is the password you chose secure? Find out with WaFd Bank's Password Strength Testing Tool. Anything you enter will not be stored anywhere—all testing on the tool is done on that page, and no data is sent or saved from that tool.
• Stay Vigilant
  If a website asks for your personal information or you want to buy something online, take a couple of minutes to verify that the site is legitimate. If you got there through a search rather than typing the URL and going to the site directly, you might have accidentally gotten to a look-alike scam site. These can look almost identical to the real site but with slight differences. Even if it has the right logo, double check the URL and make sure it's correct, since anyone can save a logo from search engine sites.
• Keep Operating Systems and Software Up to Date on All Your Devices
  It's tempting to delay computer or phone updates for a more convenient time (we've been there, too), but these updates often contain the latest security patches to increase your device's defenses. Because of this, devices that are running old or outdated versions are the target of many hacks, so it's imperative that you make the updates whenever they become available. You might also consider installing additional software that provides antivirus, firewall, and/or email filter services.

WaFd Bank is Here to Help

No question is too small, and we want to help you make the best financial decisions possible. Not only do we offer Free Checking* and have some great rates on savings accounts and CDs, but we also like to get to know you personally so we can offer the best assistance possible. To open an account or to ask us a question, give us a call at 800-324-9375 or visit your local branch today!

*$25 initial deposit to open; nonsufficient funds charge may apply.