This is a Scam
Fraudsters are savvy; here’s how to protect you, your business, and your family
My phone rang the other day, and the caller ID read that it was the U.S. Patent and Trademark Office (USPTO) calling. I answered only because I submitted a trademark application just a few months ago and anticipated a decision sometime this Spring.
The gentleman on the other end of the line announced himself politely as an agency representative. He congratulated me on the trademark application's provisional approval and shared all of its information, including the application number, my phone number and my home address.
Then things got weird.
The representative instructed me that USPTO must collect $400 via credit card today to move the application forward for final approval.
“Via credit card? Today?” I asked. “That seems highly unusual.”
“Yes, Mr. Schurman. We need to secure this information today to move this application forward,” he replied. “You can confirm the number I’m calling from your caller ID.”
At this moment, I realized very quickly that I was in the midst of a phishing attempt, the fraudulent practice used by scammers to reveal personal information, like credit card details.
No One is Immune
According to the Federal Trade Commission (FTC), Americans lost $10 billion to scams of all shapes and sizes last year. According to Interpol, people lost $1 trillion worldwide. An important takeaway: No demographic or geographic location is immune. Yet, some are more likely to be targeted and fall victim.
According to data from YouGov Profiles, the most common type of fraud is bank or credit fraud. Overall, 26% of Americans—that’s over 63 million adults—have experienced this.
One of the more significant factors influencing susceptibility to financial scams is age, with older Americans aged 55 and over being particularly susceptible at a rate of 35%. In contrast, those in the younger 18-34 age bracket are less likely to have been victims of this type of scam.
According to the Federal Trade Commission (FTC), scammers frequently target older adults, particularly those over the age of 65, due to perceived vulnerabilities associated with cognitive decline, loneliness, and limited familiarity with modern technology. This demographic also tends to be more trustworthy.
“Older generations are going to [fall for] standard phishing schemes through email, or where they get you on the phone, and tell you that your children and grandchildren are in trouble,” says Jonathan H. Swanburg, president of TSA Wealth Management, in a recent interview with TIME. “The younger generation may just see an ad on Facebook, or Instagram, or TikTok for some investment that's going to pay you 10% a month with no risk.”
While financial scams can hit people of all ages and from all educational and economic backgrounds, those with lower education and income levels may be particularly susceptible. The Financial Industry Regulatory Authority (FINRA) suggests that limited financial literacy and awareness can make individuals more vulnerable to deceptive tactics employed by scammers. People in households earning less than $50,000 per year are also twice as likely to have been scammed as middle-income and upper-income adults.
A new AARP report, The Fraud Crisis in America: How Adult Consumers Feel, What They Know and Their Actions That Pose Risk, released two weeks ago, suggests that race plays a role too. “Black respondents are the most likely to have been fraud victims: 56 percent versus the average 42 percent.”
Smarter Scams
Scammers have evolved to use more sophisticated tactics to steal money and personal information from their victims.
“Scammers impersonate IRS personnel, police, survey takers, relatives, delivery people and well-known companies to threaten you or gain your trust,” according to Experian. “They use scare tactics related to your Social Security number, criminal record or account before asking for your personal, account or credit card information.”
They even use artificial intelligence (AI) to impersonate family and friends. They do this by manipulating videos and recordings found on social media to produce realistic-sounding voice recordings or even videos. So, those seemingly innocuous Instagram reels and TikTok videos can be weaponized.
For example, the “Grandparent Scam” typically starts with a call from someone—human or machine—claiming to be your grandchild or someone reaching out on their behalf who needs your help urgently. They will say that your grandchild was in an accident or jail and that they need money right away.
If someone contacts you claiming to be a grandchild or another family member urgently needing quick money, resist the urge to act immediately. Regardless of how dramatic the story sounds, take a moment to gather information. Your best protection against this scam is verifying the facts before taking action.
Fight Back
There’s no surefire way to guard against scammers and their growing sophistication. However, there are best practices recommended by cybersecurity experts, law enforcement agencies, and consumer protection organizations.
Verify Caller Identity: This advice is commonly given by various consumer protection agencies and law enforcement organizations, such as the Federal Trade Commission (FTC) in the United States and similar agencies worldwide. It's a fundamental principle of protecting oneself from phone scams. So what happens when you get a call where the caller ID checks out, as I did? Hang up and call the main number listed on the official website.
Educate Yourself: Cybersecurity experts and organizations dedicated to raising awareness about online threats, such as the Anti-Phishing Working Group (APWG) and the Cybersecurity and Infrastructure Security Agency (CISA), widely advocate staying informed about prevalent scams and learning to recognize their tactics.
Use Security Measures: Recommendations to use antivirus software, firewalls, spam filters, and two-factor authentication are standard cybersecurity practices advocated by experts in the field, including organizations like the Electronic Frontier Foundation (EFF) and security software companies like Norton and McAfee.
Practice Caution with Links and Attachments: This advice is rooted in cybersecurity best practices to avoid falling victim to phishing attacks. Scammers use this method to trick individuals into divulging sensitive information or installing malware. Cybersecurity experts, organizations, and government agencies worldwide promote it.
Trust Your Instincts: Trusting your instincts and being cautious when something seems suspicious is a general principle of personal safety that applies to various aspects of life, including online interactions. While specific to online scams, this advice aligns with broader skepticism and critical thinking principles.
“These are sophisticated, multinational operations,” Australian Minister for Financial Services Stephen Jones said in a Sky News interview earlier this year. “The people involved are more likely to have a psychology degree than a prison sentence.”
Be vigilant, and be smart.
Have you or someone you know fallen victim to a scam? If so, we’d love to hear from you for future stories on this subject. Message me and let’s talk.