BBB Tip: How to avoid impostor scams

Utility company impostors typically call or knock on your door, claiming to be representatives from the local water, electric, or gas company. In the most common scenario, the fraudster will say a payment is overdue, and the utility will be shut off if you don’t pay immediately.

You receive a text message allegedly from a bank, alerting you of fraudulent activity on your account. You may or may not have an account at that bank. The con artists might even know your account number. They use a variety of messages and techniques, but the desired outcome is the same. They want you to give them information, the key to your money.

There are many ways to tell if a call about tax debt is a fraudulent IRS call. According to the IRS, people with overdue taxes will always receive multiple contacts, including letters and phone calls, from the IRS first. The IRS will also notify taxpayers before sending their accounts to a private collection agency. Be cautious and skeptical if you get a call first and have no idea you owe taxes.

Also called the grandparent scam, this scheme involves the impersonation of a friend or family member in a fabricated urgent or dire situation. Emergency calls prey on a person’s kindness and willingness to help. Con artists impersonate their targets’ loved ones, make up an urgent situation, and plead for help and money. Thanks to social media sites, these people can offer plausible stories and incorporate nicknames and real travel plans to convince their targets.

This is a version of an emergency scam. However, the scammers ask for a small favor instead of describing a major crisis. It can be easy to fall for these cons because the stories are believable, and the money amounts are much lower. For example, in this scam, a "friend" needs money for groceries after misplacing their wallet. Just like with an emergency scam, always check directly with your friend before sending any cash.

A tech support rep calls you at home and offers to fix a computer bug you haven’t even noticed, or a popup warning appears on your screen instructing you to dial a number for help. In this con, scammers pose as tech support employees of well-known computer companies and hassle victims into paying for their “support.”

You message or tag a business on social media regarding a recent purchase or transaction, and you receive a reply from what appears to be a customer service representative from the business. They may reply in the thread, pretending to be the business, or ask you to direct message them to resolve the issue. If you see that the account was recently created, has spelling errors, and the social media handle doesn't look legitimate, do not message the account or provide personal or financial information.

Many of these scams target small businesses. Scammers call, text, or email to collect unpaid “dues,” promise to lower your credit card balances, or email dangerous links or attachments they claim are related to “complaints." While a BBB office may contact a business for various reasons, you should never give personal or financial information over the phone during an unsolicited call from someone you do not know. End the call or close the email, and call the BBB office at the number listed in the BBB.org Directory.