Scammers employ various tactics such as deception, manipulation, intimidation, emotional abuse, undue influence, and empty promises to trick victims.

While anyone can fall prey to a scam, certain vulnerable groups are more likely to be targeted.

These include seniors, individuals overwhelmed by debt, people with limited English proficiency, and those with lower education levels. Scammers often use emotional appeals to make victims feel they are part of an exclusive group offered a once-in-a-lifetime deal.

Scammers also use several persuasion techniques to manipulate their targets:

Authority Power: A scammer may claim that an investment opportunity has been vetted by well-known organizations, such as the Federal Reserve Bank or the New York State Banking Department.

Familiarity: The scammer tries to quickly build a trusting relationship by referencing the victim’s local community, giving the impression of common ground.

Contrast: Scammers often present inflated regular prices and offer discounts, claiming that the consumer is receiving an exceptional deal, even though the original price is exaggerated.

Tips to Protect Yourself from Scams

The New York State Department of State Division of Consumer Protection continuously updates resources to help the public recognize and prevent scams. These guidelines are essential to keep up with the latest trends in fraud prevention.

Preventing Advance Fee Loan Scams

Know the Law: It’s illegal for anyone to require payment in advance for a loan or credit.

Avoid Guarantees: Ignore offers that promise guaranteed loans for an upfront fee.

Legitimate Lenders: Real credit offers do not demand upfront payments. Any fees should be deducted from your loan amount after approval, not before.

How to Avoid Charity Scams

Verify Charities: Donate only to recognized and registered charities. Verify their status with resources like the New York State Department of State, the IRS, and the Better Business Bureau.

Watch for Urgency: Beware of callers pressuring you for immediate donations. Legitimate charities won’t demand instant contributions.

Avoid Cash Donations: Always write checks to the charity, not to an individual. Use credit cards or checks for a record of your donation.

Check Security: If donating online, make sure the website is secure and protected by antivirus software.

Ask Key Questions: Inquire if your donation is tax-deductible and what percentage goes toward the cause, as opposed to administrative costs.

Beware of Fake Solicitations: Be cautious of unsolicited calls, emails, or mail requests. Don't respond to unsolicited emails or click on links in these emails, as they may lead to fraudulent sites.

Steering Clear of Door-to-Door Sales Fraud

Know Your Rights: In many areas, door-to-door solicitors must have a license. Check your local regulations to understand when and how solicitation can occur.

Legitimate Salespeople: A credible salesperson will provide identification, explain the cancellation policy, and offer written materials.

Know the Cancellation Period: Under New York State law, you have three business days to cancel a door-to-door sales contract.

Protecting Yourself from Health Insurance Fraud

Never Sign Blank Forms: Avoid signing blank insurance claim forms or authorizations for health services.

Review Your Benefits: Always check your insurer’s explanation of benefits to ensure you received the services listed.

Guard Your Information: Only provide your insurance or Medicare identification number to those who provided the services.

Avoiding Investment Fraud

Do Your Research: Thoroughly investigate any investment opportunity to ensure it aligns with your financial goals, lifestyle, and income level.

Read All Documentation: Always review the prospectus or any materials provided before making any investment decisions.

Verify Credentials: Confirm that the broker, investment advisor, and their firm are properly licensed or registered with the U.S. Securities and Exchange Commission (SEC).

Don’t Rush: Be cautious of high-pressure tactics that push you to make quick decisions.

By leveraging the trusted names and reputations of legitimate companies, scammers attempt to trick consumers into sharing personal information!