Avoiding scams is the best way to protect yourself, but what if you suspect you have already fallen for one? While it may feel like a dire situation, it’s not the end of the world. Taking fast action is key.
Don’t panic.
To feel confused, frustrated and even embarrassed is understandable. Those feelings are valid. But don’t let them stop you from taking the necessary steps to protect yourself. Many scammers are skilled manipulators who use clever tricks and even technology like artificial intelligence (AI) to create complex stories and build a false sense of trust. Falling for a scam doesn’t mean you’re stupid or gullible.
The hard truth is once a scammer takes your money or personal information, it can be very difficult, if not impossible, to get it back. It’s important to manage your expectations and understand that the steps below are to limit further harm – to yourself as well as other potential victims.
Key steps to take immediately
1. Stop all contact with the scammer. The most important thing you can do is cut off all communication immediately. Block their phone number or email address, and do not engage with any further attempts they make to contact you. Remember, scammers often create a false sense of urgency, so don’t give them time to talk you out of your suspicions.
2. Contact your financial institutions. If you sent any money, talk to your bank or other financial institutions as soon as possible. Depending on how the money was sent, the institution’s fraud department may be able help you or provide additional resources. If your payment involved gift cards, reach out to the company that issued the card. Unfortunately, the chances of recovering money, especially from gift cards or cryptocurrencies, are low, but reporting the scam can help authorities take action and prevent others from getting scammed. Let us know too, we will work with you to secure your accounts and information with us.
3. Change your passwords. Especially if you might have compromised any online financial accounts, update passwords that provide access to those assets. As I explain in a Money Talk Video, rely on passwords that are complex and different for each account. Consider using multiple-factor authentication and a password manager.
4. Report the scam to authorities. Start with your local police or sheriff’s office. They can document the crime and provide you with a police report, which can be helpful for further investigations or for insurance purposes. Also, report the scam to these federal agencies:
- The Federal Trade Commission.
- The FBI’s Internet Crime Complaint Center.
5. Freeze your credit. If you haven’t done so already, consider freezing your credit with the credit reporting agencies. With a freeze, someone who has stolen your identity cannot open a credit account in your name. It is a smart move even if you haven’t been scammed, especially with all the data breaches in recent years. Regularly monitoring your credit accounts is also a good idea. You are entitled to one free report every year from each of the major agencies.
6. Share your experience with others. It may feel like you’re oversharing or admitting to something you should be ashamed of, but the best weapon we have against scams is information. Scammers thrive in isolation and rely on our silence, but no one has to navigate this alone. When we break the stigma and look out for each other, we take away their power and make our community a more difficult target.
Here are a few links to some helpful resources:
- Department of Justice’s National Elder Fraud Hotline.
- The FBI’s Common Frauds and Scams.
- FINRA Investor Education Foundation’s Assisting Victims of Fraud.
- The Better Business Bureau’s Scams HQ.
Jason Scuglik is information systems administrator at Landaas & Company, LLC.
(Heads Up is an occasional alert on consumer and investment scams.)