7 Don’ts to Avoid a Scam Effectively

John received a call from a stranger. The person told John that he owed the bank $9000 credit card debt. John replied that he did not have credit cards from that particular bank.  The other person on the line told him that there was a possibility of identity theft.  The caller told him not to panic but gave John a phone number purported to be the central bank. John called the number as instructed. Someone at the other end took the call and told him that there were many cases of identity theft.    John was desperate and the person purported to be a bank employee told him to transfer all his money from his accounts and deposit it into a new account. He requested for all his bank account numbers and got authorization from John to allow them to act on his behalf.  As John could not think of a better way, he did as told. A few days later John tried to call the same number but he couldn’t get through. John immediately checked his bank accounts and discovered to his horror that all his money was missing.

When you are in that situation, there are 7 things you don’t do:

1.       Don’t be panicky: Stay cool and calm when you are confronted by a strange telephone call. You can’t see the other person and the other person cannot see you. Whatever it is, the message is subject to verification.

2.       Don’t talk: Just listen and allow the person to finish talking. In this way the caller perceives you to be a”cool” person and not easily get cheated. When you get excited and interrupt, you may disclose more information.

3.       Don’t respond: It is not appropriate to respond in a telephone conversation about debt. Normally a bank will deal with it in writing like sending you a notice of demand. 

4.       Don’t disclose: Do not disclose your personal information over the phone. When you are dealing with a bank, they have already got the necessary information. There is no need for you to tell.

 

5.       Don’t cooperate: There is no need to follow instructions because it is not the right procedure especially since the caller is unknown to you.

6.       Don’t decide immediately: Put down the call and allow yourself a few minutes to think it over before you decide to do anything.

7.       Don’t keep it to yourself: It does not matter if you have avoided the scam or if you are unfortunate to be scammed, tell others the story to avoid more people getting duped.  

Adapted from an article in Feminine 540/20.3.11 205  

What Is the Granny Scam - How to Avoid it

This is a post by David Bakke, a writer for the Money Crashers personal finance blog. Money Crashers is a financial resource site and home of the top personal finance blogs list.

As soon as you learn about the latest scam and how to avoid it, another one is waiting just around the corner. Criminals are always coming up with new ways to try to steal your money. Though it's tough to spot every financial scam (including common Craigslist scams), it's important to watch out for yourself and for your older relatives, and keep yourself educated as best you can. The latest con, known as "the granny scam," specifically targets the unsuspecting elderly.

What Is the "Granny Scam?"

The granny scam targets older people, mostly grandparents, in an attempt to defraud them of their money. Instigators usually telephone their marks, claiming to be a grandson or other relative. They may claim one of a variety of things:

• They were just arrested
• They were in a car accident
• They were involved in some other serious medical emergency

Many times, crooks will claim that they've gotten into trouble abroad and are afraid to call their parents, asking to keep the request a secret. Next, the criminals coerce their prey into wiring them money to help them out of their situation. By the time the grandparent follows up, they learn that not only are their grandchildren safe and sound but also that their money is gone. To add insult to injury, some successful con artists will even call back after the scam works and double dip for more money. Some scammers are even using social networking sites to acquire information. It's not too difficult to get names, photos, and personal information, including the names of family members. Just as in instances of identity theft, criminals will use this data to their benefit, making their fraudulent claims sound credible.

How to Avoid Becoming a Victim

You don't need to be a senior citizen to be in danger. The swindlers are clever and can trick even the most vigilant people out there. But even if you think you're safe, make sure that your older relatives are informed. When a desperate call comes in, follow these steps:

1. Remain calm. A seasoned criminal will act frantic, trying to lead the grandparents into joining the panic. Swept up at the moment and worried for their young relative's well-being, a deceived victim will send the money without considering whether the claim is legitimate. It is crucial to remain calm, ignore the pleas for secrecy, and contact another family member as soon as possible to ensure that the emergency is real.
2. Ask specific questions. Now that you're calm enough to take control of the conversation, verify the identity of the caller by asking questions that only your grandchild or relative would know the answer to. Use obscure facts from that person’s life, such as the name of a family pet or where they went to grade school.
3. Get a contact number. Lastly, tell the person on the line that you will call them back. Simply ask for a contact number. This innocuous request is likely to throw a con artist off the normal script, usually ending the fraud attempt.

Final Thoughts

Criminals will try just about anything to separate you from your money, and the "granny scam" is one of many ways that these people target the elderly. If someone causes panic and attempts to reach into your pockets in the name of a family emergency, check out their story in full. Be 100% certain that you are actually dealing with one of your relatives before sending funds to anyone. Do you have additional tips for avoiding the granny scam? What other scams exist that target the elderly?

Related page:
Scams