Busting Open Six Common Scam Myths

Scams are deceptive schemes designed to trick people into giving away money, personal information, or access to their accounts. Understanding how scams work is one of the best ways to recognize warning signs early, protect yourself, and avoid common misconceptions.

Myth One: Scams are Really Obvious 

It can start with something as ordinary as a message that looks familiar. Someone receives a text that appears to come from their bank, warning them of suspicious activity and urging them to act quickly. In the rush to protect their account, they click the link, enter their information, and only later realize money has been taken. Stories like this are a reminder that scams are not always obvious at first glance. Fraud today can be surprisingly sophisticated. In imposter scams, fraudsters may pretend to represent trusted organizations, including banks, government agencies, or major companies, to gain a person’s confidence. One of the biggest warning signs is urgency: a sudden investigation, an unexpected account problem, or pressure to act immediately. When a message creates panic and demands quick action, it may be part of a scam.

Myth Two: Only Older Adults Fall for Scams

Older adults can be the target of financial scams. Criminals tend to focus on people who have retirement savings, live alone, are less familiar with newer technology, or face age-related cognitive changes. But that does not mean scams only affect mature citizens. Younger adults, including people who consider themselves confident online, also report losing money to fraud. A scammer does not choose a target because of age alone; they look for a moment of urgency, distraction, trust, or confusion. That is why anyone can be vulnerable and why the next myth matters. According to Summit Credit Union, people ages 18 to 59 were 34% more likely than those age 60 plus to report losing money to fraud. Of course, this statistic does not consider which ages are most likely to underreport scams. Despite the absence of that fact, older adults tend to report higher median individual losses. While all ages must protect against scams, older adults must be extra vigilant to safeguard their life savings.

Myth Three: Scammers Get Victims Exclusively from Social Media

Social media is a breeding ground for scams, with escalations of scams being reported. Social media can be entertaining, but it also gives scammers easy access to personal details. A public birthday post, a pet’s name, a vacation photo, or a comment about a favorite store may seem harmless on its own. But in the wrong hands, those small details can help a scammer make a message sound personal, believable, and urgent. Still, social media is not the only place scammers gather information. They may also use public records, data breaches, leaked passwords, or even compromised accounts belonging to people you know. With these details, they can make phishing messages or phone calls feel familiar and trustworthy. Protecting your privacy helps, but scammers can still combine information from many sources to build trust.

Myth Four: Scammers are Always Pushy

Some scams use pressure, threats, or urgent demands. But not every scammer starts by sounding aggressive. Many begin by appearing helpful, patient, or kind. For example, a caller may claim to be from a trusted company and offer to fix a computer problem, recover money, or protect an account. The friendly tone is part of the trap: once trust is established, the scammer may ask for payment, personal information, or access to a device. Sometimes, people innocently and unknowingly offer up this information to the scammer.

Myth Five: Public Wi-Fi is Mainly Safe to Use

Public Wi-Fi can be convenient, but it is not always secure. A traveler might log into a bank account at an airport, hotel, or coffee shop without realizing that the network is fake or poorly protected. Scammers can use unsecured connections to capture sensitive information, send users to fake websites, or trick them into entering passwords. When using public Wi-Fi, avoid accessing financial accounts or sharing private information unless you are sure the connection is secure. It is best to avoid sensitive transactions until you are on a trusted and fully secure network. Otherwise, you risk having hackers intercept your communications with the potential to steal your passwords or credit card details and cause you major headaches.

Myth Six: Caller ID is Very Accurate

Caller ID can be faked. This tactic, known as spoofing, allows a scammer to make a call appear as if it is coming from a local number, a familiar bank, a business, or even a government agency. Unfortunately, this unscrupulous practice is becoming increasingly common. For example, a person may see the name of a familiar institution on the screen and assume the call is legitimate. Here’s new advice: Instead of trusting caller ID, if you answer the phone and get an inquiry, you are now urged to hang up and contact the organization directly using a phone number from an official website, statement, or a trusted account record. Always refrain from sharing any information with the caller. This highlights the sophisticated nature of scams and why people should not automatically rely on caller ID to verify the caller’s identity.

How to Protect Yourself from Scams

Ø  Stay informed about new and emerging scams by following AMAC’s Scam Watch (link needed) and by signing up for alerts from your local Attorney General’s Office. Note that State Attorney Generals play a key role in investigating and prosecuting scams - which are serious criminal matters.

Ø  Keep your guard up. Scams can be convincing, so it is okay to hang up on a suspicious caller, ignore a questionable text, or report a suspicious email. You do not need to be polite to unknown callers, particularly if your safety is at risk.

Ø  Verify before trusting. Be skeptical of unexpected calls, emails, or texts, and never share personal or financial information with someone who contacts you out of the blue.

Ø  Watch for red flags (common signs of scams). Be cautious of anyone demanding sensitive information or requesting payment by gift card, cryptocurrency, wire transfer, cash, or other hard-to-recover payment methods. Never share any account numbers or passwords. Hang up or block potential scammers.

Ø  Monitor your accounts regularly, including bank statements and credit reports. If someone contacts you about a possible problem, do not click links or call numbers they provide. Instead, use official channels to check your account status.

Ø  Report suspected scams to the appropriate organization. A good starting point is ReportFraud.ftc.gov, the federal government’s website for reporting fraud, scams, and bad business practices.  As always, if you are being threatened or have lost funds due to theft, contact the police.

How to Protect Yourself from Scams

Scams succeed when they feel urgent, familiar, or trustworthy. They are not always obvious, they do not target only one age group, and they can arrive through social media, public records, phone calls, texts, emails, or fake caller ID. The best defense is to slow down, verify independently, protect your personal information, and report suspicious activity. Staying informed and cautious can help protect your money, your identity, and the people you care about. Remember that if you suspect a scam, it’s best to disengage with the contact and report the potential scam rather than risk giving away your valuable private information or losing your hard-earned money.

Disclosure: This article is purely informational and is not intended as a substitute for professional advice.