In a world where we use our phones and computers for almost everything, it’s more important than ever to be on guard against fraudsters. We wanted to share some real text, email, phone call, and social media scams that have harmed our friends, family members, and clients. Our goal is to help you recognize these tricks and avoid becoming a victim.

The key reason these frauds work is that scammers are experts at creating a sense of urgency or fear or even building a false sense of trust. They hope you’ll act quickly without thinking. By understanding their methods, you can better protect yourself and your hard-earned savings.

Common Scams and Real-Life Examples

Here are some of the most common scams we see today, with examples of how they might show up on your phone or computer.

The “Grandchild in Trouble” Scam

This is an emotional scam where the criminal pretends to be a family member in need of immediate help.

How it Works: You receive a text message or a phone call that sounds like your grandchild. They might say, “Hi Grandma, I’m in big trouble. I was in an accident, and I need money right now for bail (or a hospital bill). Please don’t tell mom and dad, they’ll be so mad.”
The Trap: The scammer creates a sense of panic and asks you to send money in a way that is hard to trace, such as with a wire transfer or gift cards. They want you to act out of love and concern before you have a chance to stop and think.
What to Do: If you receive a call like this, hang up immediately. Call your grandchild or another family member directly on a phone number you know is correct to verify the situation. Never send money to someone you can’t see or verify.

The “Urgent Problem” Scam

This scam creates a sense of panic by pretending to be from a well-known company or a government agency.

How it Works: You might get an email that looks like it’s from Amazon, saying there’s a problem with your recent order and asking you to click a link to fix it. Or you might receive a phone call where a person claims to be from the Social Security Administration saying your number has been compromised and you must provide information. Similar frauds are carried out using the names of utility companies, banks, toll roads, parking authorities and others. The way they create a sense of urgency is to threaten things like turning over your account to collection, shutting off your utilities, returning your package, threatening arrest or other pressures. A devious twist on this scam is to send you a message that you’ve ordered some expensive equipment (think computer, phone, gaming device, etc.) and they need more information to make sure it isn’t fraud. Since you didn’t order this, you may think that they’re being helpful, but they are really trying to hurt you.
The Trap: In these frauds, the email link given to you in the message takes you to a fake website that looks real and asks for your personal details. Alternatively, if you call the phone number they gave you, a person will use threats to scare you into giving away your information or money.
What to Do: Remember, legitimate companies and government agencies will almost never contact you out of the blue to demand personal information or money. If you receive one of these messages, do not click on any links. The FBI suggests ⁽¹⁾ that you look up the company’s official phone number or website. You also could use contact information you know to be true (like on a bill, letter or envelope you have received in the past). Then contact the company or agency in that way to ask about the issue.

The “Computer Virus” Scam

This scam takes advantage of your concern for the security of your computer or device.

How it Works: You may be browsing the internet when a window suddenly pops up on your screen. It flashes warnings and says, “Your computer is infected! Call this number immediately to speak with a technician from Microsoft or Apple.”
The Trap: When you call the number, the person on the other end will try to convince you to give them remote access to your computer. Once they are in, they can install harmful software, steal your private information, and then demand a large payment to “fix” the problem.
What to Do: Legitimate companies like Microsoft and Apple do not send these kinds of pop-up warnings. If you see one, close your web browser. If you can’t, turn your computer off and then back on. Never call the number or give a stranger access to your computer. If you’re not using your computer’s virus scanning and malware blocking programs, have a trusted person turn these on. The same is true if you think your computer may be infected. Talk with someone you know and get help to have your computer checked by a legitimate business (preferably local to you).⁽²⁾

The Online “Friend” Scam

This scam preys on our natural desire for friendship. The scammer creates a fake personality who pretends to be interested in you.

How it Works: You might meet someone on social media or in an online game. It may look like an accident that you met. One example is receiving a text “misaddressed” to you asking how you’re doing, or saying the sender will be late. After you respond to let them know that they’ve reached the wrong person, they respond in an embarrassed, but charming way. The conversation goes back and forth in what might look to you as an encouraging start to a friendship. This personality seems kind and encouraging. One common tactic is that they might congratulate you for overcoming the difficulties you’ve encountered in your life or for the success you’ve earned. After building a bond for weeks or months, they will suddenly have a serious problem. They might claim to be a non-US citizen who needs money for an immigration issue (usually saying that they’d like to see you in person), or a business owner who needs funds to get their goods out of customs. Another tactic is to pretend to be an entrepreneur or foreign government official who says that as their friend, you deserve to get in on their profitable venture. The types of tales that fraudsters tell are only limited by their own scheming imaginations.
The Trap: The scammer’s stories are designed to pull at your heartstrings and make you feel a duty to help or convince you that they want to share their opportunity with you, their good friend. They may say they can’t access their own money or that they will pay you back as soon as their problem is solved. The request for money is often urgent and uses methods that are hard to trace, like gift cards or wire transfers.
What to Do: Be very careful with online relationships, especially if you have never met the person face-to-face. No matter how much you trust someone you have only met online, never send money (in any form) to them or give them any bank account information. If a new online acquaintance asks you for these, it is a clear sign of a scam.

How to Protect Yourself

Take a moment to pause. This is key! Scammers want you to act without thinking. Before you respond to any urgent request, take a deep breath and give yourself time to verify the situation.
Never share personal information. Be very careful about giving out details like your Social Security number, bank account information, or passwords over the phone or by email.
Be suspicious of unusual payment requests. Scammers often ask for money in ways that are hard to trace, such as with gift cards, money wire services, or digital currencies such as Bitcoin. This is a major warning sign.
Talk to someone you trust. If something feels wrong or too good to be true, or just off a little, talk to a family member, a friend, or us. A second opinion can often help you spot a scam before it’s too late.

Scammers are literally everywhere and nearly everyone has been exposed to them. A number of people close to us have been scammed, including clients and family members. We’d like this never to happen again.

We’re available to discuss concerns you may have. And if you think you may have been scammed, please also call us. We can help you to protect your investment accounts and direct you to further help. If you would like to ask us for our opinion on a message you’ve received, call us at (402) 991-3388. Allow us to help you.

If you’d like to read more about how to protect yourself against scams, we recently posted this article on our website. Also, if you think this information would be helpful to protect your friends, feel free to post a link to these articles on our website in your social media feed at: https://www.am1st.com/insights/

Eric Ball, CFA
Managing Director & Chief Investment Officer
America First Investment Advisors, LLC
Omaha, Nebraska

Disclaimer: This article is for informational purposes only and does not constitute personalized financial advice. It does not claim to deal with every type of scam, nor does it prescribe every protection you should take. Consult with a qualified financial advisor before making any investment decisions.