It’s almost impossible to keep up with the numerous scams and frauds in the world, all aiming to separate people from their money or personal information.
Social Security Administration officials know that many of these scams prey on older, trusting residents, so they have set Thursday aside to remind everyone to stay on their toes and beware of scams.
National Slam the Scam Day, organized by the Social Security Administration and the Office of the Inspector General, offers precautions and advice on how to prevent being the victim of a scam.
How scammers get you
Scammers will often pretend to be from an organization that you know, such as the Social Security Administration, the IRS or Medicare, the Federal Trade Commission said. If you are not sure, hang up and call the agency using a phone number not provided by the caller.
They’ll say there’s a problem or prize, that action needs to be taken immediately and that payment needs to be done in a specific way, such as wiring money or cryptocurrency.
Block unwanted calls and text messages, and do NOT give out personal and financial information in response to unexpected calls.
You should also resist the urge to act immediately, as “honest businesses will give you time to make a decision,” the FTC said.
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“Never pay someone who insists you pay with cryptocurrency, a wire transfer service like Western Union or MoneyGram, or a gift card. And never deposit a check and send money back to someone,” the FTC said. “Stop and talk to someone you trust. Before you do anything else, tell someone — a friend, a family member, a neighbor — what happened. Talking about it could help you realize it’s a scam.”
The cost of scams
Americans lost $8.8 billion to fraud and scams in 2022. In New Jersey consumers reported losing $231 million during the same time, according to the Federal Trade Commission, which is up 77% from 2021.
There were 48,226 scams or cases of fraud in New Jersey in 2021.
Stop! That’s a scam
- Sometimes it’s hard to tell as scammers pretend to be from government agencies, including the Social Security Administration, even using official logos. If you didn’t call them, be wary and ask yourself, “Why is the Social Security Administration” or another government agency contacting you out of the blue?
- Beware if a prize is mentioned.
- Beware if you are told to “act immediately.”
- A sure sign of a scam is if you are asked to pay for something with a gift card, internet currency, a pre-paid debit card or cash, especially by mail or cash transfer service.
- Report it if you are threatened with arrest or legal action if you don’t immediately send money.
- If you are promised an increase to your benefits or have a problem resolved if you pay a fee or move your money into a protected account, be wary, it’s most likely a scam.
- Be cautious if someone tries to gain your trust by providing fake “documentation,” false “evidence,” or the name of a real government official.
“Scammers are counting on you being uninformed of their deceptive tactics so that you will fall prey to their ruses,” said the Office of the Inspector General in a statement.
National Slam the Scam Day is an initiative created in 2020 to raise public awareness to combat Social Security-related scams. The Social Security Administration and the Inspector General partner with other government agencies, nonprofit organizations, and the private sector to increase awareness about how to spot government imposter scams and avoid becoming a victim.
Common scams
The most common type of fraud is imposter scams, accounting for a third of New Jersey fraud reports last year, according to federal data.
In those types of scams, the person poses as another individual or group and convinces a victim to send them money.
“This is the most common form of fraud reported to the Federal Trade Commission,” AARP says.
Those between the ages of 18 and 59 typically lost around $500 to fraud — that shot up to $800 for those aged 70 to 79, and $1,500 for those over 80, according to FTC statistics.
Tax season scam
Preparer fraud: The scammer sets up a business, real or virtual, as a tax preparer and promises big refunds, warns the AARP. For a fee, they will fill out your return with exaggerated deductions and credits, with your name on the return. But, when the refund comes, it will go into their account, not yours and by the time you realize it, they will be long gone.
Signs your tax preparer may be a fraud
- They refuse to sign the return or enter a Preparer Taxpayer Identification Number. The Internal Revenue Service (IRS) requires both.
- They charge a fee based on how much your refund will be;
- They ask you to sign a blank or incomplete tax form;
- They file the return without allowing you to review it;
But the crime can get worse: “If that person is willing to lie [to get your business], they probably are willing to use your information to steal your identity,” says Rosario Mendez, an attorney with the Division of Consumer and Business Education at the Federal Trade Commission.
Signs your tax return was hijacked
- You can’t e-file because of a duplicate Social Security number.
- You get a letter from the IRS asking about a suspicious return you didn’t file.
- You get an IRS notice that an online account has been created in your name, and you didn’t create it.
- You get an IRS notice that you owe additional taxes.
- IRS records indicate wages from an employer you didn’t work for.
- You’ve been assigned an Employer Identification Number (EIN) that you didn’t ask for.
Report the scam and help others
If you’re looking to report a scam, call your local police department or visit, www.ssa.gov/scam for more information and follow SSA OIG on Facebook, Twitter, and LinkedIn to stay up to date on the latest scam tactics.
Staff Writer Daniel Munoz contributed to this article.
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