Many Local 4 viewers call Help Me Hank about the various scams going around metro Detroit -- the IRS Scam, the Utility Shutoff Scam, or the College Grant Scam.
Recently, the Federal Trade Commission made it easier than ever to spot phone fraud and hang up on the crooks before they can steal your money.
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The commission has banned the three payment methods most often used by con artists. If someone calls with a phone solicitation, they cannot ask you to use a money transfer, a cash reload card, or to create electronic checks. Each method is difficult, if not impossible, to track and that's why so many scam artists will demand payment using one of those methods.
"They get the money very quickly, they can get it in cash and they can get it essentially anonymously," Susan Grant, director of consumer protection and privacy at the Consumer Federation of America, told NBCNews.com. ""Also, consumers don't have any dispute rights with these forms of payment to get their money back once they realize they've been scammed."
For consumers, it takes some of the guesswork out of trying to determine if the caller is a scammer or a legitimate business. With these rules in effect, no legitimate business or government agency is going to call you and demand payment using one of these forms.
As Help Me Hank has warned you in the past, the method of payment can be one of the biggest red flags when you get that disturbing phone call. The new rules from the Federal Trade Commission make it easier than ever to spot a scammer and end the conversation as quickly as possible.
As always, if you have any doubts about the story you've been told, you can always find a legitimate phone number for the IRS or your utility, to do more research on any claims.
Fighting Scammers: Four Steps That Work for Every Scam
Working with the Better Business Bureau of Southfield, Help Me Hank has come up with a four step strategy that can beat any scammer.
1) IGNORE!
It's really important that you get caller ID and train yourself to ignore any call if you don't recognize the number. Just don't answer! If it's someone you know, they will leave a message and you can call them right back. Every time you pick up a call from a scam artist, you are telling that scammer you are a live target. The same goes for strange emails, delete them! And, never click on links in emails from someone you're not 100 percent is a friend or legitimate business.
2) RESIST
If you answer a call and someone is demanding money or personal information, resist their offers or their threats. It should become obvious that something's not right, depending on which buttons their trying to push.
"If they're really just trying to prey on my emotions or my fear, that's when you should just immediately hang up!" advises Melanie Duquesnel, CEO for the local Better Business Bureau in Southfield.
She says you never want to share personal information or make a payment, during that first point of contact, especially when that call comes out of the blue. You can listen (without sharing any of your information) but always remember to hang up and do more research!
You can also come up with a "refusal script" in your head that you can use on any scammer or aggressive sales person to reject their offers. Come up with a way to tell them you always do more research on any offer and it's just a standard procedure that you don't do business without 24 hours to consider the offer.
"You can come off politely, but at the same time firmly," said Duquesnel.
3) VERIFY!
If the caller says something that catches your attention, makes you nervous, or seems worth checking out, do further research to see if what they're saying is true. Remember, never call the numbers they give you for that extra research. Find a legitimate number to call. If you keep calling them back, you could be hearing more lies.
Another good idea, google some of the key facts of the story you've been told. There is a lot of information online about scams that are making the rounds. Victims often post their stories, including the names of the scammers, the phone numbers they've used, and other details that can help you spot a scam.
Be sure to go sources beyond that first call before you spend any money.
"The initial call is never homework. If someone calls you and says 'Hey, you've won a million dollars!' and you consider that your homework, I'm going to say absolutely not! You have flunked out of the how to avoid a scammer class," said Duquesnel.
4) NOTIFY!
Finally, if somebody tries to scam you, tell other people so they can be on the lookout. Share you story with friends, family, and even social media so others know what kind of scams are currently making the rounds and how to spot them.
If you lose money, do not be embarrassed to tell someone. They might be able to help you stop further losses, and again, they will be on the lookout for these fast-talking criminals. It's also important to notify local police when appropriate, the IRS, the Federal Trade Commission, or whatever agency might be able to offer you assistance.
Anyone can fall victim to a scam artist, if the scammer finds the right button to push to pressure them into surrendering their money.
"You must inform. You must share and in doing so you save somebody else," said Duquesnel.