Phone Scams

These phone calls deceive individuals into participating in fraudulent schemes, often promising fake products, services, or investments. Also called telemarketing scams, this fraud can take many forms, but some common ones include the following:

telephone boiler room

  1. Impersonating a government agency or law enforcement to threaten the victim with arrest or fines unless they pay a fee.  See Imposter Scams. 
  2. Pretending to be a legitimate business, like a bank or tech support, to steal login credentials, credit card numbers, or other sensitive information.
  3. Offering a fake prize or investment opportunity requires the victim to pay an upfront fee or provide personal information to claim it.
  4. Using a recorded message to prompt the victim to call back a premium rate phone number, resulting in a large phone bill.

These scams can lead to significant financial losses and compromise personal information, putting victims at risk of  identity theft. Scammers may collect personal and financial information. Falling for phone scams can cause emotional distress, embarrassment, and financial hardship.

Caller ID spoofing

To perpetrate phone scams, criminals trick the caller ID to make the phone call look legitimate and official.  Caller ID spoofing allows someone to display a phone number different than the actual number from which the call was placed.  Thus, it appears that they are calling from a specific location or a legitimate government agency such as the IRS, law enforcement, border protection agency, Amazon, PayPal, or anyone the fraudster wants to impersonate.  These Caller ID spoofing apps are readily available on smartphones. 

  • Callers go to great lengths to keep you on the phone.
  • Callers make the event or opportunity extremely urgent.
  • Callers say someone will pick up the money.
  • Callers direct the victim to mail the money, deposit the money into an unknown bank account or cash app, or buy Bitcoin or gift cards. See Gift Cards and Other Untraceable Payment Methods.  
  • Just hang up. Or don't answer and let the caller leave a message so you can decide whether to call them back. 
  • Register your phone number on national and state Do Not Call lists to reduce unwanted calls.
  • Use caller ID and call-blocking apps to screen and block unwanted calls.
  • Do not trust that the number on your Caller ID is correct.
  • Ask for the caller's name, organization, and contact information, and verify their identity independently.
  • Don't share personal or financial information unless you made the call using contact information from official publications, correspondence, or websites.
  • Be skeptical of high-pressure sales tactics, urgent demands for payment, or offers that seem too good to be true.
  • Don't make hasty decisions or payments during a call. Take time to research and consider offers.
  • Discuss the call with friends and family before agreeing to anything.
  • Educate yourself and family members about common tactics used in fraud.
  • Cease Communication: Immediately cease all communication with the scammer and block their contact.
  • Contact Your Bank: If money was sent, contact your bank or financial institution to report the fraudulent transaction.
  • Monitor Accounts: Regularly monitor your financial accounts for any unusual activity or unauthorized transactions.
  • Report the Scam  to local authorities and the appropriate online fraud reporting agencies. See How to Report Fraud.
  • Secure Your Accounts: If you share personal information, change your passwords and enable two-factor authentication where possible. See Cyber Crime Prevention for more information.

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