Learn how to avoid phone scams and what to do if you become a victim.

The telephone, whether it is a landline or a mobile phone, is a scammer's favorite tool for breaking into a potential victim’s life. Studies have shown that 36% of fraud complaints in which a contact method was identified began with a telephone call. According to data from the Federal Trade Commission (FTC), the median loss in scams that start with a call is $1,200, higher than for any other method of contact. The driving purpose for all phone scams, which can also include text messages, is to get your money or your personal information to commit identity theft. Don’t give them what they want.

Hallmarks of a Phone Scam

Phone scams come in all shapes and sizes, but they all tend to have similar characteristics. Here are a few red flags that may indicate the caller or texter is running a scam:

• You’ve won a lottery. The caller may say you’ve been selected at random to win a special offer or a cash prize, but there are a few fees that you must pay before your prize can be delivered to you. If you have to pay to get the prize, it’s not a prize.
• Law enforcement is on their way to pick you up. Scammers will impersonate law enforcement or a federal agency, and they can be convincing. Their goal is to scare you into paying a fee, fine, debt or tax with the threat that you will be arrested and/or have your Social Security number or credit/bank accounts frozen. Real law enforcement and federal agencies will not call and threaten you.
• You don’t have time to think about it or call a friend. Scammers will tell you that time is of the essence and that you have to take action right then. Take time to think over the offer and request written information about it before you commit to anything. Don’t get pressured into making a decision on the spot.
• You must pay with cash, a cash equivalent or a gift card. Scammers want you to pay in a way that makes it easy for them to get their hands on your money, and electronic money transfers, gift cards, prepaid cash or cash reload cards, and money transfer apps make it difficult, if not impossible, for you to get your money back. Anyone who asks you to pay with one of these methods is a scammer.
• The person who called you needs you to provide your personally identifying information (PII). It’s never a good idea to give out your Social Security number, account numbers or other PII to someone who calls you unexpectedly.

Common Forms of Phone Scams

Phone scams often take the following forms:

• Imposter scams: A scammer pretends to be someone you trust. It might be a government agency like the Social Security Administration, or the Internal Revenue Service, a family member, a love interest, someone you do business with like your bank, credit card company, or even Amazon, or someone claiming there is a problem with your computer. The scammer can have a fake name or number show up on your caller ID to convince you.
• Debt relief or credit repair scams: For a small fee, scammers will promise to lower your credit card interest rates, fix your credit, or get your student loans forgiven. Chances are you will lose your money and end up making your credit problems worse.
• Business and investment scams: Promises of big profits with their help to start your own business using their foolproof model and with their business coaching turn into huge financial losses and ruined credit.
• Charity scams: Scammers especially like to capitalize on current events and disasters to make you feel like you should donate right then. Don’t feel pressured to give immediately and always use the Florida Department of Agriculture and Consumer Services' Check-a-Charity tool to verify that the charity is properly registered in Florida.
• Extended car warranties: Scammers may give the impression that they represent your car dealer or manufacturer, and they may use phrases like “Final Warranty Notice” or “Notice of Interruption” to pressure you into buying a service contract or extended warranty. Really what they want is your personal information and possibly a down payment on a contract they won’t be around to honor.
• “Free” trials: These scams are often just a way to get you signed up for a service that delivers products and bills you for them every month, and it is often difficult to get the service canceled.
• Loan scams: Scammers target people with poor credit histories and guarantee loans or credit cards for an up-front fee. Legitimate lenders don’t make guarantees like that, especially if you have bad credit, no credit, or a bankruptcy.
• Prize and lottery scams: These prizes may come with a list of taxes, registration fees, legal fees, or shipping charges that you must pay before you can claim the prize. If you have to pay for it, it’s not a prize.
• Travel scams and timeshare scams: Up-front fees, hidden charges, and booking challenges are common characteristics of these scams.

Have You Been Scammed?

Scammers are not going to make it easy for you to get your money back, but no matter how you paid, the sooner you act, the better. The FTC makes the following recommendations:

• If you paid a scammer with a credit or debit card, you may be able to stop the transaction. Contact your credit card company or bank right away. Tell them what happened and ask for a “chargeback” to reverse the charges.
• If you paid a scammer with a gift card, prepaid card, or cash reload card, contact the company that issued the card right away. Tell them you paid a scammer with the card and ask if they can refund your money. The sooner you contact them, the better the chance they’ll be able to get your money back. Learn more about gift card scams.
• If you paid a scammer by wiring money through companies like Western Union or MoneyGram, call the company immediately to report the fraud and file a claim. Contact Western Union at 1-800-448-1492 or use the Western Union online fraud claim form. Contact MoneyGram at 1-800-926-9400 or complete MoneyGram's Report Fraud form online. If the money hasn't yet gone through to the recipient, you may be able to cancel the transaction and get your money back.
• If you paid a scammer using a money transfer app, contact the company behind the app. If the app is linked to a credit card or debit card, contact your credit card company or bank first. See more tips for using peer-to-peer payment systems and apps.
• If you gave a scammer remote access to your computer, update your computer’s security software. Then run a scan and delete anything it identifies as a problem. Learn more about protecting your personal information and data. 
• If you gave your username and password to a scammer, change your password right away. If you use the same password for other accounts or sites, change it there, too. Create a new password that is strong. Learn more about protecting your personal information and data.
• If you gave a scammer your Social Security number (SSN), visit IdentityTheft.gov to learn how to monitor your credit report to see if your SSN is being misused.
• If someone calls and offers to “help” you recover money you have already lost, don’t give them money or personal information. You’re probably dealing with a fake refund scam.