Credit: Shutterstock photoUnless you're living off the grid, you've probably received your fair share of unsolicited phone calls. A telemarketer tries to sell you a timeshare in Florida. Or a robocaller has something important to tell you about your car insurance—if you stay on the line, that is. While annoying, many of these calls aren’t illegal. But they are growing in frequency, and who exactly is on the other line has taken a dark turn.
Phone scams, in which fake bank representatives or automated recordings try to get you to share sensitive information, were responsible for 3.7% of total calls in 2017, according to First Orion , a tech company that provides phone call and data transparency solutions. But this year, the company reports that scam calls will represent more than 29% of all calls, and by 2019, that number will have reached nearly 45%.
One man’s experience with phone fraud
One man, Cabel Sasser, recently experienced this type of call first hand. Sasser—co-founder of Panic Inc, an Oregon-based video game publisher—got a call from a Wells Fargo representative to ask about unusual debit card activity. He was asked if he'd recently been shopping at a Target in Minnesota.
He hadn't been. Given that the number on the phone matched the number on the back of his card, he assumed the call was a legitimate warning about an ongoing attempt at bank fraud. It turns out it was, just not in the way he initially imagined.
Sasser supplied the information requested by the Wells Fargo agent and proceeded with creating a new PIN for his card. The person on the other end of the line asked him to enter his former PIN to confirm the change, and that's when the warning bells started ringing.
Sasser knew the bank should already have the information they were requesting.
He also knew you should never provide a representative with account numbers unless you are the one to initiate the call.
Fortunately, he was quick on his feet, and decided to hang up and redial the number on his card before sharing any more information. When a real Wells Fargo agent answered his call, Sasser realized how close he'd come to having his bank account emptied by criminals.
In the end, Sasser protected his account, and he was able to order a replacement card from Wells Fargo. His experience should stand as a warning to everybody with a bank account and a phone.
How to protect yourself from fraud
The tactics and technology criminals use have become increasingly sophisticated in recent years. With the right software, fraudsters can make an incoming call look like it's coming from your bank, the IRS, a neighbor or even, yes, your own phone number.
And recently, the IRS warned that scammers may pose as relief workers over the phone or email in an attempt to steal charity donations for victims of Hurricane Florence .
If you receive a phone call from somebody who requests money or sensitive information, such as your credit card number, bank account information, Social Security number, birthday or address, here’s what you should do:
- Do not trust the number you see on your caller ID. If the number is from a recognizable institution, hang up and call back at the number listed on the organization's website or on official company documentation, such as your bank statement or credit card.
- Ask a legitimate bank representative if your account has been compromised. Oftentimes, a scammer will obtain some of your information, such as the last four digits of your Social Security number, and they'll try to pose as a bank representative to get further access to your accounts. In most cases, your bank will insist on sending you a new card as a precautionary measure.
- Request a credit freeze. If you fear some of your personal information has already been stolen, such as in the 2017 Equifax data breach, requesting a credit freeze will help prevent criminals who do have access to your information from opening new accounts in your name.
- Look into identity theft protection. Ask your home insurance company or credit card company if they provide this service. In many cases they will provide credit reporting and fraud alerts that will help you respond quickly to attempted identity theft.
This article, " One Man's Cautionary Tale About Phone Scams " was originally published on ValuePenguin .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
