How to Spot Common Scams and Protect Your Money

In today’s digital world, scams have become more advanced, often targeting the trust and loyalty of the military community. Now, more than ever, it’s crucial to recognize the warning signs of scams and take steps to protect yourself and your family. This guide will walk you through common red flags, different types of scams, and what to do if you think you have been targeted. Let’s stay informed and protected!

How Can I Spot a Scam?

Although it can be challenging to track every new scam, criminals often use similar tactics to deceive their victims. Here are some red flags to watch out for:

• Secrecy: You are instructed not to disclose the true purpose of withdrawing or sending funds. If someone insists on secrecy, it's a clear warning sign.
• Urgency: Scammers create a sense of urgency, pressuring you to send money quickly. Genuine organizations will give you time to think and verify information.
• False Stories: You are coached to provide a false story for transactions. Honesty is crucial in financial dealings; any request for deception should raise suspicion.
• Online Interactions: Be cautious of anyone who contacts you online, especially if you have never met in person. Scammers often use social media, messaging platforms, or dating apps to build trust before requesting money.

These fraud tactics can be highly effective, according to the Federal Trade Commission. In fact, scams using these methods result in millions of dollars in losses annually. Stay vigilant and safeguard yourself by identifying the warning signs early!

What Are Some Common Types of Scams?

Having familiarity with the battlefield of scams can keep you from becoming a casualty. Here are some common scams to watch out for:

Advance Fee Scams

In these scams, you are asked to pay money upfront in anticipation of receiving something of greater value, such as a loan, investment, or lottery winnings. Unfortunately, the promised reward never actually materializes.

Overpayment Scams

The scammer intentionally “overpays” you for a product or service, usually with a fake check or fraudulent payment method. Then, they ask you to refund the excess amount, typically through a quick payment method like wire transfer or gift cards. By the time the original payment is discovered to be fake, you've already sent the refund, and the scammer keeps your money.

Refund Scams

This is somewhat similar to overpayment scams, but instead the fraudster convinces you that you are owed a refund, often pretending to represent a legitimate company or financial institution. They might overpay the refund amount or claim there's been an error, then ask you to send back the extra money. The initial "refund" is fake, and when you send the supposed excess back, you're losing your own funds.

Gift Card Scams

If someone asks you to buy gift cards to pay for bills, taxes, or fees, it's a scam! Gift cards are meant for gifts and should never be used as a payment method for debts or fees.

Family Emergency Scams

Scammers impersonate family members in distress, claiming they need money for emergencies or bail. Always verify the identity and situation of the caller before taking action.

Investment Scams

You are contacted through a messaging app or receive an unsolicited text from a wrong number. The scammer pitches a “guaranteed” investment opportunity, showing a platform that looks legitimate and mimics real results. However, their goal is to trick you into investing more money. This type of scam is also known as a Pig-Butchering Scam.

Imposter Scams

In these scams, criminals pretend to be investigators or government officials from the IRS, FBI, Social Security Administration, or a computer security company, saying that you need to send money. Make sure to verify their identity through official channels before proceeding.

Tech Support Scams

You are told that your computer has a virus and asked to give remote access. Legitimate tech support will never contact you unsolicited to fix a problem you didn't report.

Dating Scams

You develop a long-distance romantic relationship with someone you met online. Unfortunately, these relationships can turn into scams if your partner asks for money repeatedly.

I Got Scammed. What Should I Do Next?

If you suspect you have fallen victim to a scam of any type, it’s important to take swift action:

1. Change your passwords and security questions.
2. Contact your financial institution for support (Armed Forces Bank’s contact information is listed below).
3. Keep all records and communications related to the scam for reference.
4. Inform the FBI Internet Crime Complaint Center (IC33), the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB) of the incident.

How Do I Report a Scam to Armed Forces Bank?

Your security is our top priority. If you suspect you have been targeted by a scam, please notify us. Here are three ways to contact our military bank:

• Log in to your Mobile or Online Banking account and send a secure message through the chat feature.
• Visit afbank.com and use the chat bubble in the bottom right corner to speak with a banker, available Monday - Friday, 8 AM - 10 PM, and Saturday, 9 AM - 5 PM, Central Time.
• Call the Armed Forces Bank Client Care line at 888-929-2265, Monday - Friday, 8 AM - 7 PM, Central Time.

Always remember that Armed Forces Bank will NEVER ask for your personal information, account numbers, or passwords via phone, email, or text. Always verify suspicious requests independently!

So What?

Staying informed is your best defense against scams. Share this information with friends, family, and colleagues to help them stay safe too. Remember, knowledge is your first line of defense in the fight against fraud.

Looking for more fraud prevention resources? We have your back!

FINANCIAL EDUCATION: Scams & Fraud; Preventing ID Theft; Reporting ID Theft; Fraud Alerts & Freezes; Mobile Security Tips; Visa Card Security; EMV Chip Technology.

FRAUD-SPECIFIC RESOURCES: General Cybersecurity; Military Scams; SIM Swap Fraud; Phishing Emails; Phone Scams; Text Scams; Pig-Butchering Scams; Crypto Investment Scams; Elder Financial Abuse; Business Fraud; Tax Return Security.

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