By NYLAG Financial Counselor Kamron Rustamov
In 2023, New York ranked #8 in a list of the “Top 10 Most Financially Scammed States in the U.S.” compiled by Forbes using data from the Federal Trade Commission. At the time, New Yorkers were said to have lost $64.9 million to fraudsters.
Fraudsters are now taking advantage of the latest sophisticated technologies to stay one step ahead and prevent raising red flags. But don’t worry, you’re not alone in this fight. We’re here to equip you with the knowledge and tools to outsmart these scammers. Whether you’re online or on the phone, remember these tips to protect your hard-earned money.
1. Scams targeting immigrants.
Here are some things that immigrants seeking legal and immigration services must watch out for.
A. Fake attorneys: individuals falsely pose as lawyers to offer immigration advice without a proper license.
What you should do: Verify the status of their license before treating them as an attorney. You can look up whether someone is an attorney registered with the New York State bar through the New York State Unified Court System. Enter their name at: https://iapps.courts.state.ny.us/attorneyservices/search?1
B. Fake identity documents like social security cards, driver’s licenses, and passports. It is a crime to use false identification that has not been issued by a government entity.
- What you should do: Consult with an attorney to review your legal options to obtain these documents.
C. Construction companies exploiting immigrants by withholding wages after completing work.
- What you should do: Verify the employer and the status of the job offered to you before beginning the job.
- Temporary Construction Workers in New York have many rights and employers have many obligations to provide under the law to these employees. For more information visit: Temporary Construction Workers Rights
The Manhattan District Attorney’s Office is a safe place to report a crime like fraud. Anyone regardless of their immigration status or national origin can safely report a crime to the Manhattan DA.
- You can learn more at the Manhattan DA’s Office. You can also reach out to the NYC Immigrant Affairs Helpline at (212) 335-3600.
2. Phishing scams
“Phishing” is a digital scam where fraudsters steal personal or financial information by posing as trusted entities.
- You may receive an “urgent message” claiming issues with your accounts, pretending to be your bank, mortgage servicer, or cell phone provider.
- Another common tactic is a phone call from a scammer posing as a government agency representative. They might claim to be from the Social Security Administration or IRS, even manipulating their caller ID to appear legitimate.
These messages often include links to fake login pages that mimic the real ones. Although the website may look legitimate, when you enter your credentials, they capture your username and password to defraud you.
Here is what you should do:
- If you receive a text, email, or link prompting you to log into your account, it’s best not to click it. These messages could contain viruses designed to steal your personal information. Instead, manually navigate to the website to ensure it is the real one.
- Never respond to e-mails or pop-up messages that ask for personal or financial information, especially if it’s an unexpected request. This simple rule can help you avoid falling victim to such scams.
3. Grandparent Scam
Scammers may call you pretending to be a relative, maybe a grandparent, to ask for emergency financial assistance. You may receive a call from a phone number that looks familiar. Phone numbers can be spoofed. Spoofing is altering a fraudulent phone number, email, or website URL to make it appear legitimate. The imposter calling may use AI technology to clone your family members’ voice and likeness.
You may get a call from a family member stating they are injured, in an accident in another country, or in jail and need money immediately to get out. They may pressure you to act fast to transfer this money.
This is what you should do:
- If you ever get a call like this, hang up and call your relative yourself.
- Be vigilant that voices and likeness can be cloned, and fraudsters are using sophisticated technologies to manipulate people.
4. Identity theft and advance fee fraud
Some fraudsters may impersonate foreign government officials asking you for help wiring large sums of money out abroad. Victims share their bank account information and other personal information for promised payouts, but it is a scam. Many victims report that their accounts were drained, and their credit cards were maxed out.
- Never provide any banking, or other personal information for that matter, to anyone. If it seems too good to be true, it most likely is.
In conclusion, remember three key points to steer clear of fraudsters:
- Never share personal or bank account details, especially with unfamiliar individuals.
- If it sounds too good to be true, it probably is.
- Be wary of sophisticated scammers who replicate legitimate websites; avoid clicking on links from your bank and instead visit the website or app directly to verify any notices.
Still have questions?
If you are concerned about the legitimacy of anyone who has contacted you or if you need support, talking to a financial counselor may be helpful. Financial counseling can help you figure out what to do if you are a victim of fraud or refer you to additional help from reliable sources. Financial counselling is free and confidential. Connect with a NYLAG financial counselor.