The 4Ps of Imposter Scams: Preventing Financial Fraud

Imposter scams fall into one of the biggest categories of financial fraud, according to statistics. In this type of fraud, a criminal contacts you and says (deceitfully) that they are from your bank, credit card company, or a government agency, such as the IRS. The imposter then uses a variety of approaches and tactics to not only fool you (their target), but also to convince you there is a problem that must be resolved…right away. It’s a very effective scheme and one that causes billions of dollars in consumer losses every year. Fraudsters often pretend they’re from the Social Security Administration (SSA) in order to target senior citizens who might be living alone and are not aware of beating imposter scams or how they work. And, of course, to steal as much money from them as they can. One day each year, the Social Security Administration runs a campaign to raise awareness of consumer fraud, especially regarding Social Security–related scams. Their “Slam the Scam” Day campaign provides resources for consumers and organizations to educate the public and provide resources for victims of fraud. In actuality, the SSA provides anti-fraud resources year-round for consumers. This includes this report entitled “Protect Yourself from Scams,” which you can find at SSA.gov. Another one of their ongoing resources is “Scam Alerts.” These are short and helpful bulletins that provide advice to help people stay alert and safe. In one of their Scam Alerts for the 2024 campaign, the SSA covered the tactics that con artists use in their effort to scare, trick, and ensnare victims. We call them the 4 P’s of an imposter scam. Here they are: Each of the 4 P’s of an imposter scam can be a warning sign of a potential scam. You might at first think you’re talking to someone from your bank. But the second they mention some problem with an account, or say you need to make a payment, the scam is easier to spot and avoid. Keep this one fact in mind and you’ll likely be prepared. Most organizations rarely reach out to consumers, customers, or members. When they do, it’s usually with a routine message (change of terms, a sale, etc.) and not an urgent problem. Awareness of the 4 P’s and of scammers’ tricks drastically reduces your chances of becoming a victim. All of us are potential targets of a scam, but being scam-savvy prevents us from becoming victims. For more insights into scam awareness, visit EasyPrey.com and follow the Easy Prey Podcast, hosted by Chris Parker.