Baeza: Don’t be fooled — Protect yourself from financial scams in Arizona

The pandemic has sparked a new chain of financial fraud activity, and Americans have lost more than $530 million from COVID-related scams — Arizonans alone have reported more than 12,000 fraud cases and have lost more than $11 million.

Types of recent scams range from fraudulent government checks related to the coronavirus stimulus, to cryptocurrency scams, travel scams, and phone call-based identity scams.

Corporate check scams have become increasingly more frequent. Individuals receive payment for a new job, an overpayment for something sold online, or prize money. Throughout the COVID-19 pandemic, the government issued checks to many individuals.

This occurrence presented a new opportunity for scammers to mislead people. The goal of the defrauder is to convince the recipient to deposit the fraudulent check and later send some of the money back.

How to protect yourself: If you are suspicious about a check, ask yourself, did you expect it? Did you receive specific instructions on how to deposit it? Were you asked to return the money using a money order, gift card or wire transfer?

These are all signs of suspicious activity, and the check should be destroyed. If it looks like a government-issued COVID-19-related check, visit the IRS website to verify its authenticity.

Identity theft is another popular way to con someone. The objective of this type of fraud is to steal directly from an individual’s bank account, access their credit cards, apply for mortgages or act in another fraudulent way using someone else’s identity. If you feel that you are a victim of identity theft, there are several resources available to assist you.

Identitytheft.gov and idtheftcenter.org are two reliable websites that can provide information on a personalized recovery plan as well as other valuable information.

In general, being aware of suspicious activity, checking bank and credit card accounts regularly, and knowing what to look for is crucial to protecting your finances, credit cards, and overall identity.

A few recommendations and best practices for avoiding scams include:

• Never share personal or financial information via email, text message or over the phone.
• Regularly update your passwords and make them strong using unique symbols and words. Keep computer programs updated.
• Be cautious when online shopping. It is best to use a credit card versus a debit card when making online purchases, and only shop at a company’s site directly. Avoid clicking on links that may have been manipulated.
• Be cautious when giving to online charities and beware of impostor calls such as people posing to be grandchildren or other family members.

While some of these things seem like common knowledge, people still get fooled and taken advantage of. Having this information top-of-mind helps. If in doubt, seek advice from a trusted financial institution or adviser.

Editor’s note: Angelica Baeza is manager, digital marketing, at TruWest Credit Union.