Fraud Fighter Tips from AARP Arkansas

Sweepstakes Scams
Who wouldn’t want to win thousands or even millions of dollars, or the chance to go on a luxury vacation? There are many legitimate sweepstakes and contests out there, and the idea of winning some fabulous prize can be mighty alluring. Criminals get that, and they exploit our excitement to score that big check or dream trip.

When a sweepstakes or a contest is fraudulent, there is often a big red flag: you must first pay upfront fees or taxes to get your prize. No legitimate sweepstakes or contest requires upfront payment. Another clue is if you are asked to share sensitive information to receive your prize, such as your Social Security number or bank account information. Again, this is something perpetrators do, not legitimate entities.

If you find yourself reacting to an out-of-the-blue communication with a heightened emotion, and it comes to you with great urgency, let that be an indicator or a fraud attempt. Take an “active pause” – consider what you are being confronted with, what you might know about it, and then react with intention. That moment of deliberation could be what keeps you safe.

Look Out for Fake Checks
Checks might seem like something from the past, but scammers often use fake checks in their crimes so they can exploit the time it takes for them to bounce. During that waiting period, scammers will ask you to act on those funds. But once the check bounces, any amount you acted on is gone. This tactic shows up in several scam types from fake job and work-from-home scams (the fake check is to purchase equipment from the “employer” or for you to wire orotherwise send funds to “vendors”), to a seemingly innocent overpayment you received where you’re asked to send part of the money back.

It’s important to know that, just because the check looks like it cleared, it doesn’t mean it has – it can take time for a bank to validate a check, but the federal rules are to make the amount available, usually within 24-48 hours. Use caution when accepting a check: ensure it is validated by your bank and reject seeming overpayments where you’re asked to pay back the overage to the sender.

How to Make Yourself a Harder Target
Criminals are always looking for ways to get your personal information to use in criminal activities. The good news is that there are many steps you can take to help protect your data and minimize its value to criminals. Here are three:

Create stronger passwords: Better protect yourself by using strong and unique passwords or passphrases or consider using a password manager to store and generate strong passwords securely.

Use multi-factor authentication: A second layer of defense to your accounts makes it harder for cybercriminals to gain access. Check account settings for two-factor authentication, two-step verification, or multi-factor authentication, and follow the setup instructions.

Keep your operating system updated: Sometimes those updates are to patch a known vulnerability; set yours – and your antivirus protection - to update automatically.

World Elder Abuse Awareness Day
The impact of elder financial abuse is profound. While abuse can come from known perpetrators like caregivers or family members, scams carried out by strangers are also a major threat. In fact, the Federal Trade Commission estimated that criminals stole as much as $61.5 billion from adults age 60 and over in 2023 alone. With World Elder Abuse Awareness Day coming up on June 15, it's a timely reminder that we can take steps to prevent the financial exploitation of older adults.

Encourage older adults in your life to add a trusted contact to their financial accounts. This person won’t have access to make transactions but can be notified if there’s suspicious activity or if the account holder can’t be reached.

Freezing credit is an important way to prevent unauthorized accounts from being opened in their name. Additionally, help reduce exposure to phone-based scams by setting up robocall and text message blockers through their mobile carriers or reputable apps.

Small actions like these can go a long way to protecting the financial well-being of older adults and ourselves.

Toll Road Scams
If your phone’s been lighting up with messages saying you owe a road toll, you’re not alone. Criminals are blasting out fake texts pretending to be from government agencies or toll services. Their goal? To scare or rush you into clicking a link, handing over personal info or making a payment.

Here’s what you need to know: legitimate toll agencies don’t collect payment via text message, and they won’t threaten you over a missed toll.

If you get a message about unpaid tolls, do not respond or click on any links—even if it looks legit. Instead, check your account using the state tolling agency or transponder company's legitimate website or phone number—not information from the message.

Medicare Fraud
To protect yourself, protect your Medicare number. Don’t share it with anyone who contacts you out of the blue. Be wary of offers for free medical equipment or services that you are told Medicare will cover. The only equipment or services Medicare will cover are those that are prescribed by your doctor.

Review your Medicare statements regularly and report anything suspicious to your medical provider. If your concern persists, contact Medicare at 1-800-MEDICARE.

Travel Scams  
Travel scams are heating up just in time for summer, from bogus deals to fake booking sites and other schemes. Here is how to spot some of the most popular vacation scams.

Scammers often create fake vacation rental listings, then pressure you to pay upfront through wire transfers, gift cards, or other hard-to-trace methods. If a host asks you to pay outside the platform, it's a scam.

Be skeptical of steeply discounted offers and use a credit card for stronger fraud protection. If something feels off, take the time to verify before making any payments. Also, learn about any new-to-you travel site before booking by searching the company’s name along with the word “scam” or “complaint” or “review” to read about other people’s experiences.

Spotting Fake QR Codes
QR codes are everywhere – from restaurant menus to package tracking. But where there is innovation, there are criminals exploiting them for fraud. QR codes are now being used by scammers to lead you to phishing websites, where they may steal sensitive details like banking info, login credentials and more.

Before acting on a QR code in the real world, check for signs of manipulation (a sticker over the original QR, for example). And you don’t have to use a QR code – if you’re at a restaurant, ask for the printed menu. Also, look at emailed or texted QR codes with suspicion; the point of them is to link you to a website when you’re not otherwise online.

Just like when clicking links, it is important to use caution when scanning QR codes to ensure the source is trustworthy.

Summertime Door-to-Door Scam
Summer is officially here, which means door-to-door sales crews are too. But buyer beware because what they’re selling isn’t always legit.

These scams can take various forms. Sometimes, they involve solar panels for your home at a can’t-be-beaten price, or they involve students selling magazine subscriptions to help fund their school programs. Other times, they involve construction workers who say they stopped by because they just happened to be working in the neighborhood. One thing they all have in common is pressure to sign up or pay upfront.

Any “deal” that you have to sign up for right away or that you have to pay for in advance is likely no deal at all. Your best bet is to proactively seek out the services you need. And consider making a deal with yourself to never do a deal with someone before you’ve had time to do your research.

The Latest in Amazon Impostor Scams
Criminals love to impersonate big businesses, and the bigger the better. One of the largest targets of impostor scams last year was Amazon. According to the Federal Trade Commission, 44,000 reports about scammers using Amazon's name were filed last year, with $19 million reported lost. Here are two of the latest versions of an Amazon impostor scam to be on the lookout for.

Complex scams that involve an Amazon impostor, a bank impostor and someone pretending to be a law enforcement investigator are trending. These scams have a heightened sense of legitimacy because the victim believes they are speaking to different independent entities who are all confirming the same threat. In reality, they are talking to multiple criminals who are all part of the same scheme.

False membership renewal messages are another trending form of Amazon impostor scams. Because many customers aren’t aware of when their membership expires, these messages can seem legitimate. The criminals also create real-looking websites where you can share your payment information.

Whenever doing business, renewing a membership or dealing with a suspicious charge with any retailer, it is safest to do so at their official website or through their official customer service lines. Do not rely on links or phone numbers emailed or texted to you. These run a higher risk of being connected directly to a crook.

Homebuyers and Owners Beware
In today’s tight real estate market, there is often pressure to act quickly when you find that perfect place. Scammers know this and are waiting to pounce. Here are three things to be aware of when shopping for a home.

Wire fraud can happen when a criminal impersonates a real estate or title company and asks you to send the closing costs to them. Before wiring any funds, contact your real estate company and confirm the account information, routing instructions and total amount needed.

Criminals are also in the market to take advantage of those at risk of foreclosure. Beware of anyone promising to make your mortgage payment issues go away -- especially if they ask for an upfront fee.

Lastly, if you are looking to rent a home, make sure to visit in person before paying a deposit. Rental scams happen often, with criminals creating legitimate-looking websites offering great deals on homes that aren’t really up for rent.

Digital Delivery Scams
If you’re like many Americans, the arrival of a package at your doorstep is a common occurrence. In the age of digital shopping, it has become harder than ever to keep track of what is coming when and from whom. This new reality has led directly to the rise of the digital package delivery scam.

These scams start with a text message claiming that your package has been kept on hold because of an issue with your address, insufficient postage, or nobody was home to receive it. This type of impostor scam will claim to be from the U.S. Postal Service, UPS or FedEx delivery, to name a few, and will include a link to a website that looks legitimate.

Once there, you’ll be asked to verify personal information like your address or login credentials, or pay a postage or delivery fee. According to the Federal Trade Commission, Americans reported $330 million in theft from text scams in 2022, more than double the reported losses from the year before.

To avoid these scams, never click on links or call phone numbers from random text messages. If you think there is an issue with a package you’ve ordered, go directly to the retailer or shipper’s website and check for yourself.