Scam Definitions and Prevention: Key Factors from the Guide

This condensed guide provides essential information on the most prevalent scams targeting individuals today. It outlines scam types, core tactics, red flags, and actionable prevention steps to protect yourself and your finances.

What Is a Scam?

A scam is a dishonest scheme where victims are convinced to send money or personal data, believing the request comes from a trustworthy source. Scams may involve becoming an unwitting intermediary, laundering stolen assets, or divulging sensitive information. Scammers contact potential victims through emails, calls, social media, texts, or mail, often impersonating trusted parties. No one, regardless of age or experience, is immune.

Common Types of Scams

1. Romance/Marriage/Sweetheart Scams

• Scammers create fake profiles on dating and social platforms, cultivating emotional attachments through highly personalized conversations.
• Tactics include avoiding in-person meetings, moving conversations off monitored platforms, professing love prematurely, and claiming family tragedies.
• Victims are pressured for money following fabricated emergencies, such as accidents or medical issues.
• Prevention: Be skeptical of new online contacts, verify profile images, avoid sending money or sharing personal information, and consult trusted individuals if uncertain.

2. Sweepstakes/Lottery Scams

• Victims receive congratulatory messages for prizes from contests they never entered, with requests for fees or personal/banking information to claim rewards.
• Scams usually urge immediate action and may include bogus checks that bounce after deposits.
• Prevention: Never pay to claim a prize, verify contest legitimacy, and avoid giving out personal or banking details.

3. Government Impersonator Scams

• Scammers pose as SSA, IRS, or law enforcement officials, threatening arrest or benefit loss unless immediate payment is made (often via untraceable means). I would venture to say if you ever get a call from SSA, IRS or even law enforcement, it’s a scam. SSA & IRS will have sent numerous letters to your address you will be prepared for them to call. If it’s a law enforcement, be polite and ask for their name and then google the office and call the office to verify.
• May request sensitive information, leading to identity theft.
• Prevention: Government agencies never threaten or demand instant payment via wire, cryptocurrency, or gift cards. Always verify official communications independently and avoid clicking suspicious links.

4. Tech or Fraud Support Scams

• Scammers pretend to be tech support from reputable companies, alarming targets with fake virus warnings.
• They attempt to gain remote access, steal data, or install malware via pop-ups or unsolicited calls.
• Fraud support scams might also claim to offer refunds, only to access victims’ bank accounts.
• Prevention: Never grant remote access or divulge payment information to unsolicited callers. Ignore pop-up phone numbers and verify any supposed company independently. You can search on your other device on how to delete the pop up.

5. Real Estate Scams

• During home closings, scammers pose as real estate or escrow agents, sending fraudulent wire instructions.
• Methods include compromised emails or spoofed contact information.
• Prevention: Always verify wire instructions verbally using known, independent contact numbers, and confirm in-person when possible.

6. Business Email Compromise (BEC)

• Criminals impersonate colleagues or vendors, manipulating employees into transferring funds or divulging confidential info.
• Tactics include spoofed email addresses, spear-phishing, and malware to infiltrate legitimate communications.
• Prevention: Use verbal verification for payment requests, scrutinize email addresses and attachments, implement two-factor authentication, and limit sharing of sensitive personal details on social media.

7. Investment Scams

• Scammers offer “guaranteed” high-return investments, often posing as friends or romantic contacts.
• Techniques include lengthy relationship-building, “mirroring,” and purported offshore opportunities (“pig-butchering” schemes).
• Victims see fake online account balances until the scammer vanishes with their funds.
• Prevention: Be skeptical of unsolicited investment offers or urgent pitches. Verify broker and investment legitimacy, and always get details in writing. Discuss any opportunity with trusted professionals before investing.

8. Grandparent Impersonation Scam (Also: Grandkids Calling Scam)

• Scammer poses as a grandchild or relative
• Claims emergency (jail, accident, stranded abroad).
• Asks for urgent wire transfer or cash delivery.
• Uses emotional manipulation and fear to pressure fast action.
• Prevention: Hang up and call the grandchild/parent directly. Never send money without verification. Use a “family code word” for emergencies

General Prevention Tips

• Remain cautious with unexpected or urgent requests—verify senders independently.
• Don’t share personal or financial information with unknown sources.
• Set up strong passwords and enable multifactor authentication where possible.
• Regularly consult with trusted advisors and report suspicious activity to the relevant authorities or firms.

Important Statistics

• Email is the most common contact method for scammers.
• Consumers reported over $10 billion in fraud losses in 2023.
• Nearly 1 in 3 Americans report some form of online financial fraud or cybercrime experience.

If you suspect a scam, immediately contact your financial advisor or the listed support numbers from official sources. Stay vigilant, verify all requests, and follow best practices to protect yourself and your assets.

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Emerald Advisors, LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.