Phone scams: How they work and what to look out for

The unfortunate answer is yes, there are many ways in which scammers can steal your money or your info by hacking into your phone, or convincing you to give information over a phone call or through a text. With so much of our personal data on our phones, it’s no wonder that they now put us at greater risk of being scammed out of our money or having personal data stolen. 

But, being aware of these phone scams and schemes will help you protect yourself from any scams that you may be exposed to. In this article we’ll look at: 

• How phone scams work

• Examples of common phone scams

• How to avoid phone scams

• How to identify a scammer on the phone

• What to do if you think you’ve been scammed 

Phone scams work by tricking people into sharing their personal or financial information. These scammers can be very creative and there’s a wide range of unique phone scams out there designed to take your money. There are a few different tactics they use to seem more legitimate. Some involve robocalls (recorded messages), while others are real people on the other end of the line often impersonating people or organizations you know or trust.

To make it even more difficult to spot a scam, callers can make it appear that they are calling from a different number than their own (a tactic known as “call spoofing”). This often means having the first three digits mimic your area code, so you assume it’s a local business you’ve recently interacted with or even someone that you may know.

The “one ring call scam” is where callers will dial and let it hang up after only one ring, often late at night. They call from a foreign area code and they usually call multiple times in one night. Their goal is to annoy you or frighten you into calling back. What their victims don’t know is that all they’re looking to do is pocket the expensive charges and fees from the foreign phone calls. 

Scammers often impersonate government organizations or well-known companies to convince you to give them information or send money. In some cases they might appear calm and friendly in order to encourage you to trust them, while others might be more threatening to pressure you into acting quickly. Similarly, someone pretending to be a friend or family member might claim there is an emergency and they urgently need you to send them money. 

If you receive a call from someone asking you to donate to a charity, never give credit card or payment information over the phone, even if you know the charity they claim to work for. If you’re interested in the cause they are fundraising for, ask for a website or other verifiable source where you can learn more before donating funds securely. Learn more about type: entry-hyperlink id: 7jg3LIwk7StRjTPoPPEOab. 

A scammer claiming to be from your bank calls and tells you there is a problem in relation to your account or card. They might ask you for your PIN or tell you to transfer money into another bank account that they have set up in order to keep it safe. In reality banks will never ask you for your account details (like your username or password), your security details, your PIN or ask you to move money to a different bank account.

A call to say you’ve won something might come as a nice surprise, but there’s a catch - you have to send money before the prize will be sent to you. No legitimate lottery will ask you to pay to receive something you’ve won. 

Phishing, no longer only used in email, is a phone scam that frequently happens in text messages schemes where the scammer pretends to be a bank, utility company, governmental agency, or another ‘trustworthy” organization looking to trick consumers into sharing their personal information. These can often be designed to look like automated messages, claiming that there is suspicious activity on your account or that there’s been an issue with payment. Sometimes, responding to these messages may lead the sender to try and install harmful malware on your phone, even if you don’t share sensitive information.

If you receive a suspicious text message, verify the number with the organization claiming to text you, or delete the message altogether and call the organization directly to discuss the issue. 

There have also been reports of third-party app developers tricking consumers into downloading their app by making it appear that they are affiliated with a well-known brand or app, while they are actually operating independently. When users download these apps, they often are unknowingly agreeing to a subscription fee (although major smartphone providers like Apple and Google both have password checks in place to help users avoid accidental subscriptions), or the apps may contain malware designed to mine your phone for sensitive info, send text messages using your number, or hack your photos or location information. 

Before downloading any app to your phone, be sure to check the developer and confirm that it’s affiliated with the brand it claims to represent. 

In order to keep your smartphone safe and avoid smartphone scams, make sure you have a password or passcode set on your device and never download suspicious apps or software. If you’re unsure about an app or app developer, check an open review platform such as Trustpilot to see what experiences other consumers have had with the app. 

Although there are always going to be new scams popping up, the best thing for you to do is to try and stay up to date on different reported phone scams, and to always be cautious, particularly when it comes to your mobile device, or anywhere that personal or financial information is stored. 

So, how can you avoid falling victim to phone scammers? 

• Don’t give out personal or financial information 

• Never use gift cards or wire transfers as payment 

• Ignore the calls

• Filter calls

• Hang up 

• Don’t give in to pressure or threats

• Confirm the call is legit 

• Don’t assume a local area code is trustworthy
  

Generally speaking, you should never give personal or financial information to someone over the phone unless you can easily verify that this person is a legitimate representative of the business they claim to work for. As a rule of thumb, government officials will almost never ask for personal or financial information over the phone, so it is best to be wary of anyone claiming to be a government official pressuring you to give this information. 

Similarly, anyone from a financial institution or service that demands you pay money to release or track down funds should be met with a healthy amount of skepticism. If you believe that the call is legitimate, get in touch with your bank or financial institution through a formal channel (corporate phone number, website, or retail location) before sending money. 

Any organization who calls you asking for payment via gift card, wire transfer, crypto should raise suspicion. 

You can always go the old fashioned route and let suspicious or unknown numbers go to voicemail where possible. 

There are apps such as NoMoRobo and RoboKiller that will filter spam calls for a small monthly fee. These days, many wireless service providers also offer a spam filtering service for free or for an additional fee per phone number.

If you suspect that a call might be a scam, hang up and research the caller before going any further. 

If someone is pressuring you to act quickly when it comes to making a payment or sharing your information over the phone, end the call to get in touch with that agency or company directly. Putting pressure on people, sometimes by suggesting they’ve broken the law by failing to pay for something, is a trick scammers often use to play to people’s fears, making them more likely to act without thinking. You have a right to take your time before making any decisions so don’t give in to threats . 

Use a publicly available phone number or go to a physical location to confirm the legitimacy of the phone call. 

If you’re questioning the legitimacy of a company represented by a caller, you can check their Trustpilot profile page to see what experiences other consumers have had with this company. Similarly, if you’ve had a phone call with a legitimate company, you can share your experience with other Trustpilot users by leaving a review. 

One of the biggest tactics used in phone scams is “call spoofing” — where the caller makes it appear that they are calling from a different number than their own. This often means having the first three digits mimic your area code, so you assume it is a local business you’ve recently interacted with or even someone that you may know.

Stay alert and don’t assume that a call from a local area code is from someone you can trust.

If you receive a call from an organization or company that you’re unsure is legitimate, here are some steps you can take to verify their identity, or spot signs of a scammer:

It may sound simple, but asking someone to verify their name, company affiliation, and location is enough to scare off some phone scammers. It also allows you information to cross reference with a reliable source. 

If not, have the caller explain in detail why it is critical that information be shared over the phone. If it sounds suspicious, hang up. 

If the caller is pushy or aggressive, this is a warning sign. A legitimate telemarketer or company representative should be willing to call back at a time that is convenient for you and allow you time to investigate their reason for calling. 

Most companies where you are an existing customer should be able to provide you with information that would only be available to a company representative. For example, if you get a call from a utility company, ask them to confirm your most recent statement amount or payment date. With a bank, you can ask them to confirm the last place you used your debit or credit card. 

If something doesn't feel right, you have every right to end the call.

If you suspect you may have fallen victim to a phone scam and you’ve sent money or think your bank account might be compromised, contact your bank and explain the situation. If you’ve given out any personal details like passwords, change them right away. Alert your local consumer protection agency and your wireless service provider. Depending on your location, you may have certain rights that entitle you to compensation.

Most governments also have local agencies to help report and stop these phone scams, so if you Google “Report financial scams” you should find the correct one for your location. 

Trustpilot is a review platform that is open to all. The companies and profile pages referenced in this article are provided for informational purposes only and are not recommended, endorsed by, or representative of the views of Trustpilot. The Trustpilot companies linked in this post are expected to abide by Trustpilot’s Guidelines, but have not been reviewed for compliance.