How to Spot a Phone Scam Before It Costs You
Phone scams cost Americans over $39 billion each year. The good news: most fraudulent calls share the same warning signs. Once you know what to look for, you can protect yourself and the people you care about.
1. They Create Urgency
Scammers pressure you to act immediately — "You'll be arrested if you don't pay now," "Your account will be closed in 10 minutes," "This offer expires today." Legitimate organizations give you time to think, verify, and consult others.
2. They Request Unusual Payment Methods
No government agency, utility company, or legitimate business will ever ask you to pay with gift cards, wire transfers, cryptocurrency, or money orders. If a caller insists on these payment methods, it's a scam.
3. They Ask for Personal Information
Callers who ask for your Social Security number, bank account numbers, or passwords without a verified prior relationship are almost always scammers. Hang up and call the organization directly using a number from their official website.
4. The Number Looks Local but Doesn't Match
Modern scammers use "neighbor spoofing" — displaying a phone number with your area code to increase the chance you'll answer. Use CallerIQ to look up any unfamiliar number before returning a call.
5. The Caller Claims to Be from a Government Agency
The IRS never calls to demand immediate payment. Social Security never suspends benefits by phone. Medicare never asks for your number to mail you a new card. These agencies contact you by mail first.
What to Do When You Suspect a Scam
- Hang up immediately — no need to explain yourself
- Look up the number on CallerIQ
- Report it to the FTC at reportfraud.ftc.gov
- Block the number on your phone
If you think you've already been scammed, contact your bank immediately and file a report with your local police department.