Navigating scams in stressful times
Scammers are opportunists who thrive in the chaos of stressful times. And I don’t know if you’ve noticed, but this world can be STRESSFUL –emphasis on the full.
Whether you're navigating how to deal with an economic downturn, dealing with a natural disaster, or just trying to keep up with the lemons life loads into a slingshot and shoots at your head, it's easy to let your guard down. Don’t, though. Lemons are actually an effectively painful weapon. Scammers know this and are ready to load the lemon gun. They craft messages that tap into your fears and desperation, inducing a level of stress that makes it all too easy to fall into their traps.
Stress impairs judgment, making us more likely to act impulsively and be exploited by high-pressure situations that demand immediate action. Understanding this can help you slow down and think critically when you find yourself or the world at large in tense moments.
The COVID-19 pandemic: a plague of fraud
The COVID-19 pandemic was more than a health crisis—it was also a financial crisis that became a breeding ground for scams. Amidst the uncertainty, fear, and divisive messaging surrounding this time, scammers took advantage of people’s concerns about their health, finances, and future.
Scammers exploited the pandemic by setting up fake COVID-19 testing sites to steal personal information, offering fraudulent vaccines and at-home tests, and flooding inboxes with phishing emails posing as official health organizations or offers for relief funds. These scams preyed on the urgent need for information, financial assistance, and healthcare services.
Protect yourself from healthcare scams
• Check Official Sources
Verify information through reputable health organizations like the CDC or WHO rather than clicking on any links.
• Contact Healthcare Providers Directly
If an offer seems too good to be true—like early vaccine access—call your healthcare provider to verify its legitimacy.
• Report Scams
If you suspect a scam, report it to your local consumer protection office or use online tools like the FTC’s scam reporting page.
Economic downturns: The false promise of easy money
In times of economic downturns, you might be wondering how to prepare for a recession. If your brain’s search engine is Googling, "Should I take my money out of the bank before a recession," keep this in mind: Scammers are well aware of your fears. They will use this to their advantage by promoting fraudulent investment schemes or urging people to move their money into fraudulent accounts.
During the 2008 financial crisis, many people were desperate for ways to recover lost savings. Scammers took advantage by promoting fake investment opportunities and debt relief services. They promised quick returns or easy fixes, playing on people's desperation.
If you’re not sure how to spot a fake investment–and some make it very difficult to recognize the ruse–stick to well-known, reputable financial advisors or institutions when seeking help.
Protect yourself from economic scams
• Consult Financial Advisors
Before making any financial moves, especially when the fate of the economy seems less than certain, consult with a trusted financial advisor.
• Research Investment Opportunities
Always take the time to research and verify any investment opportunity. Stick to well-known financial institutions rather than new, unknown entities.
• Stay Updated
Keep informed about the economy through credible news sources rather than relying on unsolicited emails, messages, or biased finance pages.
Natural disasters: Charity scams in disguise
Natural disasters bring out the best in the helpers but the worst in the scammers. After catastrophic events like hurricanes or earthquakes, fake charities spring up to exploit people’s humanitarian values. These scams divert funds away from legitimate aid organizations and into the pockets of fraudsters.
After Hurricane Katrina, numerous fake charities and aid organizations began appearing. According to Forbes, at least 15 dupes of the American Red Cross website were created to solicit donations, and after Hurricane Sandy hit, a fake charity made up of con artists named Hurricane Sandy Relief Effort took $600k in donation funds for themselves rather than actual victims. Always check if a charity is legitimate before donating, especially in the aftermath of a disaster.
Protect yourself from disaster + charity scams
• Verify Charities Using These Resources
IRS Tax Exempt Organization Tool
• Donate Through Trusted Channels
Donate directly through established organizations’ websites or well-known platforms like GoFundMe.
• Get Assistance From Official Sources
Check with FEMA for official federal assistance to avoid falling prey during a time of desperation.
Political upheaval: fear and division as weapons
During election seasons or political unrest, scammers exploit the heightened emotions and division. They might send out fake registration forms to initiate voter fraud or impersonate government officials asking for personal information. During election seasons, it’s crucial to stay informed from trusted sources and verify any communication claiming to be from the government.
Protect yourself from political scams
• Guard Personal Information
Be wary of unsolicited requests for personal information, especially during tense political periods.
• Verify Communication
Always verify any government-related communication by contacting the organization directly using official channels.
• Learn About Voter Rights + Registration
How to register to vote in Arizona is a straightforward process. Visit official sites rather than solicited links. To learn more about voting in Arizona, you can also visit the site for the AZ Secretary of State.
• Stay Informed
Keep up with political developments through trusted news sources. Search out unbiased news sources and information through sites such as AllSides and VoteSmart.
Stay vigilant, stay calm
Have we scared you? Don’t be scared. Be vigilant, be skeptical. Sometimes it seems like all this talk about fraud and scams is a big bowl of paranoia soup, but it’s important to stay ahead of it in order to avoid getting burned by the hot broth of fraud. By being vigilant and aware of your resources, you can outsmart the scammers. A little skepticism can go a long way in keeping you and your finances safe.
Outsmart scammers + help others do the same! Report fraud or suspicious communications.
August 25, 2024
Published by SunWest Credit Union
