Cybercrime is on the rise, according to the FBI, with criminals now using artificial intelligence (AI) tools to conduct sophisticated phishing and other scams. Whether the goal is to gain personal information or actual money, these scams can be very convincing — even involving voice or video cloning of family or friends — and can cause serious damage. Here we offer 7 tips to protect yourself and 7 red flags to be on the lookout for. 

Note: While Houzz does contact customers by phone, we never call or message anyone out of the blue to request payment or password information. Email privacy@houzz.comto report a phishing attempt or to verify the authenticity of a Houzz communication.

7 Tips to Avoid Fraud

1. Be wary of — and filter out — unsolicited communications.

These can be phone calls, emails, text messages or social media messages. They might claim you owe fees, have a package stuck at a shipment facility or are late paying an invoice; that your personal or financial information has already been compromised and you need to fix it; or any number of other scenarios. Keep a log of services you subscribe to or have requested as well as shipments scheduled to arrive, and never clink on links in messages unless you have verified the identity of the sender. Clicking on links can introduce malware into your phone or computer even if you don’t provide any personal info.

To reduce the number of possible fishing attempts, consider using any spam filters built into your phone or email, or consider installing a filter created by a trusted third-party company. 

2.  Contact the sender directly.

If you’re not sure whether or not a message is legitimate, search for verified contact information and reach out directly to the company. Be aware, however, that some scammers have been able to redirect phone calls and website traffic, or have set up fake websites that look legitimate, so still use extreme caution when giving out personal information or making payments. If it looks like the message has come from someone you know — whether in video, voice or text form — use the contact info you have for that person to reach out to them separately. 

3. Deny password, code and social security number requests.

Most legitimate companies do not ask for login information (user name and password) or social security numbers over the phone, although some do require PINs. Keep a record of ones that require PINs. Also, with two-step verification becoming more popular, scammers will try to get you to share verification codes with them — never share a code that has been texted or emailed to you with anyone else, as this can provide them with access to the account being verified.

4. Use complicated passwords and two-step verification.

The longer and more complicated a password is (such as using a combination of letters, numbers and punctuation marks), the harder it will be for scammers to figure out. Also, don’t use the same password across multiple sites, and consider regularly changing the passwords to your accounts. As long as no one else has access to your device, using two-step verification (such as having a code sent to your device) can increase security as well.

5. Ask a lot of questions.

If you are unsure whether or not someone reaching out is legitimate, ask questions such as, “Can I call you back?” (then check whether the number provided matches the one of the official company website) or something only the legitimate company or person would know. A scammer might grow impatient, might not have appropriate-sounding answers or might just hang up or otherwise cease responding.

6. Check it out.

The government lists several well-known types of fraud in the “Scams and fraud” section of its USA.gov website. Fraud.org publishes an annual report with the top scams of that year. The Federal Trade Commission provides consumer alerts regarding scams. Snopes has a searchable collection of articles on not just scams and fraud but rumors, folklore and more.

7. Report scam attempts.

The more people who report fraud, the more it helps law enforcement and the general public stay ahead of scammers. Many companies have a way to let them know about fraud involving their name or services. You also can use the government’s own scam reporting tool too.

7 Red Flags to Watch For

These will help you recognize a phishing attempt or other type of scam.

1. Unexpected contact.

If a person or company contacts you out of the blue by phone, text, or email about an invoice, order, delivery or charge you didn’t know about, that’s a big red flag.

2. Questionable phone number, email address, grammar or formatting.

The text message or call might be coming from someone who says they’re with an American company but has an international phone number. The email might look personal or made up (for example, teamresponse224@outlook.com) instead of an official email address with the company’s name after the @ symbol. Also, there might be misspelled words or poor grammar, or the message might look unprofessionally formatted.

3. Everything is urgent.

Scammers will create a false sense of urgency and use pressure tactics like rude or pushy language to get you to act. Be wary of phrases such as “right now,” “urgent” and “act immediately.” 

4. An unusual way to pay.

A scammer might ask you to send gift cards or cryptocurrency, use a payment app, set up a wire transfer or use another method that is hard or impossible to trace, by which you cannot reverse a transaction or recover the funds.

5. You’ve won or inherited something.

You might be asked to pay a “small handling fee” to be sent a (nonexistent) prize or your share of an (also nonexistent) inheritance; you might be promised a high return on an investment; you might be asked to cash a large check and send the person a small amount as a finder’s fee or other fee (in which case they will then cancel the check and/or use your bank account info to siphon money). If anything involves sending money to someone you don’t know, just say no.

6. Threatening language.

Scammers may tell you that you owe money and then threaten to call the police, a credit agency or a lawyer if you don’t pay immediately. Or they may get angry and be verbally abusive.

7. Someone you met online wants money. 

A person you met on a dating app or social media might shower you with sweet talk and then ask for money — such as for a grandparent’s or child’s emergency care, or for a sudden and unexpected hardship. Whether you’ve met the person in real life or not, it’s likely a scam.

If you suspect that someone is trying to scam you in any way for any reason, slow down, take a deep breath and take the time to verify. Remember, you’re in charge when it comes to your money, and it’s your right to verify bills, claims and other financial matters no matter how urgent anyone says it is. See number 6 in the “7 Tips to Avoid Fraud” section above; you can even call the police if something doesn’t seem right or you feel personally threatened.

To learn what we at Houzz do to keep your information safe, please visit our Privacy Policy here. To report a scam to Houzz, email privacy@houzz.com.