Avoiding 21st Century Snake Oil Salesmen

Scams, Frauds & Scam Baiters

Jun 30, 2024

(Historical interpreter, Ross Nelson, in Boerne, TX.)

I am officially taking a break from Facebook’s Messenger app. In the last month, Messenger has bombarded me with “opportunities” to click links about Middle East oil investments and cryptocurrencies. The app also invited me to learn how my FB friends received thousands of dollars in government grants. All of these messages were scams, fortunately, I didn’t take the bait.

Since retiring, I have spent more time leveraging social media for various projects. Most sites offer two-factor authentication (2FA). When someone is trying to change a password or email associated with your account, the site will use another contact method to ensure it is you. 2FA protects me from someone taking control of my accounts. This post focuses on a few scams others will be addressed soon.

Social media isn’t the only place where scammers are lurking. Sometimes they come directly to your front door. The “Storm Chaser Scam” happens whenever a weather event causes damage to homes in your area. Door-to-door salespeople swarm affected neighborhoods preying on the heightened emotions of leaking roofs, downed trees, and other emergencies. Work with your insurance company, ask friends for recommendations, and check the Better Business Bureau for complaints. Whatever you do, don’t get pressured into paying for the entire project before work begins!

State Attorney General's Offices prosecute scammers

This week I had the opportunity to preview the movie, Thelma. Its premise is a 90+ woman is out of $10,000 in an over-the-phone scam. The story is inspired by the experiences of writer-director Josh Margolin’s grandmother, Thelma.

Kiplinger Magazine highlighted the top 5 phone scams despite the “Operation Stop Spam Calls” initiative coordinated by the Federal Communication Commission (FCC), Department of Justice (DOJ), and Federal Trade Commission (FTC) last summer. Their concerted effort has decreased mortgage refinance, student loan, and auto warranty scam calls. The initiative has also led to more mobile phone carriers identifying increased calls as “Scam Likely” and “Potential Spam.”

The scammers’ current top 5 phone scams according to Kiplinger are:

(1) Amazon impersonators

(2) Fraudsters selling fake insurance policies

(3) Credit card scams

(4) Cryptocurrency scams

(5) Loved one in trouble scams, which happened in the movie, Thelma. Using artificial intelligence to replicate the person’s voice, scammers contact family members and friends with an urgent plea for help. They can also “spoof” or use the person’s phone number.

A few countries have gained notoriety for originating scam calls including China, Russia, Nigeria, India, and the Philippines. In 2023, more than 56 million Americans lost $25.4 billion to phone scams down from 2022 according to research by Truecaller! Being scammed can happen to anyone- young or old, rich or poor. I read financial journalist Charlotte Cowles' riveting first-person account of losing $50,000 to an Amazon over-the-phone scammer in The Cut.

https://www.thecut.com/article/amazon-scam-call-ftc-arrest-warrants.html

I think scammers use two techniques to commit their crimes: fear and a sense of urgency. Scammers scare people into thinking something terrible is going to happen if their potential victim doesn’t act immediately. Scam calls are not always personal. A fraudster can set up an automatic dialer to place millions of calls in a short period. Someone is going to pick up the phone.

Who are the Scam Baiters? I was listening to NPR’s Here and Now program on Thursday (6/27) and learned about people who are trying to identify people who are scamming others and slow them down or stop them. I went to YouTube to watch videos of scam baiters Jim Browning and Kitboga at work. Fascinating. I read the subReddits on r/scambaiting. Are the scam baiters vigilantes? I don’t have an answer. There’s not a lot they can accomplish because most of the callers are outside the U.S. Although, one scam baiter says, “the more time he can keep a scammer on the phone, the less time the scammer has to claim another victim.”