Consumers warned of financial scams

The Pennsylvania Department of Banking and Securities is warning that there’s more than just illness to worry about with the spread of coronavirus.

“Consumers should be on alert for increased fraud during major events such as the outbreak of COVID-19,” said Acting Secretary Richard Vague. “Scams are becoming increasingly more sophisticated and scam artists are taking advantage of people, making every attempt to separate you from your hard-earned money.”

In a statement released Tuesday, the department urged Pennsylvanians to be wary of potential financial scams trying to take advantage of the situation. The statement said consumers should be vigilant about protecting their finances and should not share financial or other sensitive information with anyone who contacts them unsolicited.

“We all wish we could expect everyone to act with integrity and credibility, but too many scam artists prey on our good intentions to trust,” Vague said. “Scam artists are manipulative and all of us must remain ever vigilant. With a few simple precautions, you can help detect and prevent this from happening to you or a loved one.”

The department cited the following typical characteristics of a scam:

• A sense of urgency and limited time offers — Scammers will attempt to prompt you into immediate action and catch you off guard. No government agency will call you asking for payment or take punitive action against you if you don’t act quickly.

• Payment with wire transfer or gift cards — Once information is provided, the money is essentially gone and you cannot get it back.

• Secrecy and the need to not tell anyone — Never make a decision without consulting a credible and trustworthy source.

• Low or minimal risks with guaranteed high returns — Be cautious of any offer that guarantees a high rate of return with little or no risk or does not disclose risk.

• Unsolicited offers, including social media avenues — A new post on your Facebook wall, a tweet mentioning you, a direct message, an email, a text, a phone call or any other unsolicited communication regarding an investment opportunity related to coronavirus.

Pennsylvanians should use caution to protect themselves from scams, the department said. If an unsolicited call is received, hang up.

Consumers should be on the lookout for the following red flags:

• Has someone contacted you unexpectedly? If you weren’t expecting a phone call or didn’t initiate the contact, it should be a red flag.

• Have they promised you something? If they’re offering you something that seems too good to be true, it’s a red flag.

• Have they asked you to do something? Are they asking you for money or account information? If you didn’t initiate the conversation, don’t provide it.

Anyone who thinks they may have been the victim of a scam or attempted scam should contact their local law enforcement agency.