The First Line of Defense to Avoid Experiencing a Scam: Preparation

Scammers are getting smarter—and bolder. And unfortunately, Latino communities are being targeted at higher rates than ever before. From impersonating grandchildren in distress to manipulating trust through phone and online scams, bad actors are using our cultural values—like family, generosity, and community—to try to take advantage of us.

But here’s the truth: Experiencing a scam is never your fault. The responsibility lies fully with the scammer. What we can do is arm ourselves and our loved ones with the knowledge to recognize the warning signs, shut down suspicious behavior, and share information that protects our comunidad.

I recently wrote about how to build your financial and personal support teams to be able to reach your financial goals faster. And the most important person on that team is you. Part of reaching your financial goals is to protect yourself from experiencing a scam, which are on the rise according to the Federal Trade Commission. 

In this post, we’ll break down what the risk factors are of experiencing scams, highlight the most common types of scams, and offer tips to help you stay one step ahead. Because protecting our money, our identity, and our dignity starts with staying informed and alert.

Scam Types and Risk Factors 

AARP reported that 40 percent of Black and Latino adults have been targeted by scammers, and 20 percent have lost money as a result. Of those that lost money, 60 percent lost money more than once. And we might not even have the full picture as Latinos are less likely to report a scam when it’s happened to them. 

Among the scams that are targeted to our community include utility, grandparent, government imposter, work related, and lottery scams, AARP reported. More recently, there has been a rise in the Immigration and Custom Enforcement impersonation scams, where bad actors will pretend to be ICE agents calling people and threatening deportation if they don’t make a payment or share personal information. 

Eva Vasquez, CEO of the Identity Theft Resource Center, recently shared on NerdWallet’s SmartMoney podcast that we are all susceptible to scams, and FINRA reported that risk factors are different for different types of scams. 

FINRA outlined four groups of scams: opportunity based scams, threat-based scams, consumer purchase scams. 

Opportunity-based scams are when the bad actors promise you something positive or rewarding, like a major return on an investment of just $500. These types of scams could also include the promise of a prize, a job, an advance loan fee, a fake check, or a romance. People who have a higher risk factor for experiencing these types of scams were single men, people who had some college education or a college degree, made more money, and/or are financially fragile. 

Threat-based scams are those in which bad actors say something bad has happened, whether you owe taxes and are going to be in serious legal trouble or something bad has happened to a loved one, and they demand you pay money to avoid legal consequences. One common threat-based scam you’ve likely seen is the toll road payment scam texts that have been common in recent months. You might have received a message saying you owe a toll and if you don’t make a payment, your license will be suspended or you need to make a payment to avoid fees and penalties. The scammers are trying to get you to click on a link to steal your personal information. 

Included under the threat-based scam umbrella are the “abuela scams” where people will pretend to be a grandchild or family member and claim to need money right away. These are getting more believable with artificial intelligence, some scammers even sounding exactly like your loved one. 

Consumer purchase scams are when bad actors offer services or products that don’t exist, like pets, health insurance enrollment, fake charities, or non-existent subscriptions. People who are at high risk are those experiencing higher rates of loneliness. 

Phishing scams happen when scammers impersonate a well-known company or business through email, text, or even websites. These phishing scams are designed to get your personal information. 

How to Protect Yourself 

Eva Vasquez said we need to stop speaking about scams as though they are somehow the fault of the person who experiences one. We need to erase the stigma of shame associated with going through a scam. You wouldn’t be ashamed if your house was burglarized or your car was stolen, and you’d probably call the authorities if either of those things happened. 

• Be skeptical. If something seems too good to be true, it probably is. If somebody is asking you to send $500 and you’ll get a return of $3,000, it’s probably a scam. 
• Check the link and the email domain. Phishing scams will look legitimate, but if you take the extra minute to look at the email domain, there’s usually one or two letters off. 
• Pause and verify. If you get a text asking you to pay a toll violation or your cable company is saying they need an extra payment, call the cable company to verify if you need an extra payment. If a family member is calling, messaging, or emailing you saying they urgently need money, call them to confirm.  
• Never deposit a check from someone you don’t know. Even if it “clears,” it can take weeks or months to bounce—and you’re responsible for the amount and any bank fees reddit.com.
• Avoid paying upfront for anything (equipment, training, etc.), even if somebody claims they’ll reimburse you.
• Only do interviews on official channels. If you’re offered a job and the recruiter or HR person asks you to meet via casual apps, insist that they meet via Zoom or another more reputable meeting software. Legitimate employers will not ask you for money to be able to start a job. 
• Do your research. If you are applying for a job somewhere, do your research. Google the company, ask for references, check job boards—legitimate companies don’t rely solely on unsolicited chats or texts. 
• Talk to somebody and stay connected. Loneliness is a common risk factor across all scam types. Connect with friends, loved ones, and your community on a regular basis. And be sure to talk about anything you might be considering doing with someone else. Your support network can also help you spot a scam.  

Just like you’d report if your house were broken into or your car stolen, if you experience a scam, report it. It’s not something shameful and you could potentially be helping other people. Scammers want silence so they can continue to take advantage of people. If you get suspicious calls or texts, report it to consumer.gov, and you can also contact the AARP Fraud Watch Network Helpline at 877-908-3360. 

Remember, the most important person on your support team is you. By staying alert, informed, and connected, you can shut down scams before they ever reach your wallets.