Introduction:
Text message fraud has become a significant concern, with the Federal Trade Commission (FTC) reporting $330 million in losses due to scams in 2022. HR professionals and insurance brokers must be vigilant about this issue, given the high open rates of text messages (98%) compared to emails (20%). In this article, we highlight the common text message scams identified by the FTC and provide essential tips for safeguarding against these fraudulent activities.
1. Copycat Bank Fraud Prevention Alerts:
Fraudsters send texts posing as banks, urging recipients to call a provided number regarding suspicious activities or verify transactions. Responding or calling the number connects victims to scammers who extract personal information or authorize fraudulent bank transfers. HR professionals and brokers should caution employees and clients against responding to such texts and encourage them to directly contact their banks using official channels.
2. Beware of "Free Gift" Scams:
Scammers impersonate well-known companies, promising recipients free gifts or rewards. When recipients click the link provided and pay a small shipping fee using their credit cards, they unwittingly share their credit card information with scammers. Educate employees and clients about the risks of clicking on suspicious links and advise them to verify such offers directly through the company's official website or customer service.
3. Fake Package Delivery Problems:
Fraudsters pose as delivery companies, notifying recipients of supposed issues with their orders. These texts lead to fake websites, soliciting credit card information to cover re-delivery fees. To protect against such scams, individuals should verify delivery statuses through official channels and never share sensitive information via text.
4. Exercise Caution with Job Offers:
Scammers target job seekers on employment websites, offering fake job opportunities. Some solicit down payments for materials related to the job, thereby gaining access to victims' account information. HR professionals should guide job seekers to be cautious and research potential employers thoroughly before sharing any personal or financial details.
5. Verify Amazon Security Alerts:
Fake Amazon security alerts deceive recipients into verifying items or confirming their accounts through provided links. This results in scammers acquiring sensitive information. Encourage employees and clients to directly log into their Amazon accounts using official platforms to verify account status and dismiss suspicious messages.
Conclusion:
As text message fraud continues to rise, HR professionals and insurance brokers play a vital role in safeguarding their employees and clients against scams. By understanding the common text message fraud types and educating individuals about best practices, such as verifying offers through official channels and never sharing sensitive information via text, we can collectively combat this growing threat. Encourage victims to report text message fraud to the FTC via www.reportfraud.ftc.gov or by forwarding the suspicious message to 7726. Let's work together to protect ourselves and others from falling victim to these deceptive tactics.
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