17 Common Scam and Fraud Terms You Should Know

Common Scam and Fraud Terms

1. Call spoofing: Call spoofing, also called neighbor spoofing, is when a fraudster falsifies the information that shows up on your phone's caller ID. A scammer could use this tactic to more convincingly pass themselves off as someone you might know or as the Social Security Administration or some other government agency.
2. Data breach: A data breach is when an unauthorized person accesses a company's confidential, protected data to view, copy, transmit or expose the sensitive information. Full names, dates of birth and Social Security numbers are types of information commonly stolen in data breaches.
3. Hacker: In the world of scamming and fraud, a hacker is someone who gains access to your computer, phone, tablet or other device to access your personal information. A malicious hacker might use your information to commit identity theft, gain access to your accounts or steal your bank information and money.
4. Identity theft: Identity theft is the crime of stealing another person's personal information, such as their Social Security number, and then using it without their permission. Thieves may use the information they steal for various types of fraud, such as applying for credit in someone else's name, filing a fraudulent tax return, stealing a victim's savings or selling data to other fraudsters.
5. Mail fraud: Mail fraud is a crime in which a fraudster mails documents to perpetrate a scam, such as a fake notice of a sweepstakes prize. The scammer's goal is to steal information or money.
6. Phishing: Phishing is a crime in which scammers attempt to manipulate a victim into disclosing personal information such as a Social Security number, bank account number or password. Phishers commonly target people via email, phone calls and texts.
7. Smishing: Smishing is phishing that takes place via text message, also called SMS. Because fraudsters can spoof phone numbers, smishing scams can be convincing and may appear to come from trustworthy senders. In fact, the fraudster may be after your personal information or may attempt to install malware on your device.
8. Vishing: Vishing, short for "voice phishing," happens when a scammer tricks you into revealing sensitive information through a phone call or voicemail message. You may be targeted in a call claiming to be from your bank and instructing you to urgently send money or your Social Security number, for example.
9. Quishing: Quishing is phishing that happens using QR codes. People use QR codes every day; you might scan one when you order at a restaurant or download a parking app. But cybercriminals can co-opt legitimate QR codes, replacing or altering the code so that it sends you to a malicious site. The QR may lead to a site that downloads malware to your device, or it could lead you to a spoof website that steals your passwords or payment information.
10. Imposter scam: Imposter scams are a type of fraud in which the scammer pretends to be someone else, using an illusion of trustworthiness or authority to trick a victim into handing over payment or sensitive information. For example, in grandparent scams, the scammer pretends to be the victim's grandchild, often convincing the grandparent to send emergency money. Imposter scams are the most common type of fraud.
11. Social engineering: When fraudsters manipulate victims by leveraging human psychology against them, it's referred to as social engineering. They may create a sense of urgency by claiming something bad will happen if the victim fails to act right away. Or, they might claim to be law enforcement, relying on the fact that people often feel pressured to listen to perceived authority figures.
12. Deepfake scams/AI spoofing: New tech enables scammers to be more convincing than ever. AI can be used to create audio or video impersonations that are difficult to tell apart from authentic communications. In one example of a deepfake scam, a fraudster could clone the voice of your boss and instruct you to send over valuable company passwords. It may be virtually impossible to tell the fake voice from your real boss, which may throw a victim off enough to convince them to act.
13. Robocall scams: Robocalls are calls that deliver recorded messages. Robocall scams use these recorded messages to trick you into giving away sensitive information or payment.
14. Skimming: Skimming is when a scammer steals credit card information using a device called a skimmer, which thieves attach to card readers at ATMs, gas pumps and other points of sale to read the information in a card's magnetic stripe. When scammers similarly pilfer the information in a card's EMV chip, the theft is called shimming.
15. Spyware: Spyware is malicious software that collects information about a user's computer activity without their knowledge. Scammers can use spyware to spy on a user's keystrokes and use the data they capture to commit identity theft.
16. Malware: Malware is a digital security threat that infects your computer, phone or tablet and adds malicious code to take it over or relay information back to the hacker that implemented it. Scammers typically use malware to steal information.
17. Wire or money transfer: Scammers often try to convince their targets to send money via a wire or money transfer because it's difficult to trace and almost impossible to get back. Consider any request for payment via this method a red flag, and don't wire money to anyone you don't know.

How to Protect Yourself From Scams

While it's true that phishers use increasingly sophisticated techniques to steal information, it's also true that you can avoid many of their attempts if you know what to look out for. Here's how to protect yourself from identity theft and reduce the risk of being targeted.

Guard Your Personal Information

Immediate requests for money transfers or your Social Security number are a sure indication that you're dealing with a scammer. Avoid phishing scams by safeguarding your sensitive information.

Don't give out your Social Security number or bank account number to anyone who calls and asks you for it. A legitimate banker or government official won't call and request this information. If someone you think is official calls and asks you for identifying information, hang up and call back using the number listed on the organization's official website.

Set Up Strong, Unique Passwords

Using the same password across your devices and financial accounts places you at a higher risk of losing your key information to a fraudster.

Instead, use unique and complex passwords with a combination of letters and numbers. Using a password manager can be an easy way to securely keep track of your passwords.

Review Your Credit Reports Regularly

Make it part of your routine to regularly check your credit reports for discrepancies. You can get free copies of your credit reports from all three major consumer credit bureaus at AnnualCreditReport.com. You can check your Experian credit report and FICO^® Score^{☉ Θ} for free through Experian.

If you encounter information you believe may be the result of fraud, dispute the information with the appropriate credit bureau right away.

Handle Sensitive Mail Responsibly

Check your mail every day and bring all letters inside to help prevent mail theft. Shred anything with personally identifying information on it before tossing it, and store documents you intend to keep in a secure place.

You can also opt out of credit offers and choose to receive electronic statements from your utility companies and credit issuers to limit the amount of sensitive mail you receive.

The Bottom Line

Scammers thrive on surprise—an alarming phone call, a confusing message, a threatening letter, a malicious link in a seemingly innocent email. If you know what to expect and stay up to date on the tactics of scammers, you'll be much harder to target.

If you're worried a scammer has accessed your information, you have the right to place a fraud alert on your credit reports. The alert asks lenders to confirm your identity before issuing you any new credit. You also have the right to freeze your credit, which blocks access to your credit history.

Lastly, report any attempts at phishing using the Federal Trade Commission's official reporting site to help law enforcement track and prevent identity theft.