Phone scams cost Americans billions every year. Learn how the most common scams work — and exactly what to say (and not say) when you get one.
The Federal Trade Commission receives millions of fraud reports every year, and phone scams consistently rank among the top methods. Unlike email phishing, phone scams exploit real-time social pressure — a caller can keep you on the line, escalate urgency, and prevent you from thinking clearly in ways that a written message cannot. Understanding how these scams work is the most effective defense.
The IRS impersonation scam is the most reported phone fraud in the country. Callers claim you owe back taxes and will be arrested within hours unless you pay immediately via gift card, wire transfer, or cryptocurrency. The real IRS never calls demanding immediate payment, never requires a specific payment method, and never threatens arrest. If you receive this call, hang up.
Social Security scams follow a similar pattern: a caller claims your Social Security number has been 'suspended' due to suspicious activity and you must verify your number to restore it. Once you provide your SSN, the caller has everything needed to open credit accounts in your name. The Social Security Administration will never call to suspend your number or demand verification over the phone.
Medicare fraud calls typically target seniors, claiming there's a new Medicare card, benefit, or equipment available — but they need to verify your Medicare number first. Your Medicare number is as sensitive as your Social Security number and should never be given over an unsolicited call. Legitimate Medicare communications come by mail.
Bank impersonation scams have become increasingly sophisticated, with callers spoofing your actual bank's phone number so it appears legitimate on caller ID. They claim fraudulent activity on your account and ask you to 'verify' your account number, PIN, or one-time passcode. Your bank will never ask for your PIN or a one-time code over the phone. If you're concerned, hang up and call the number on the back of your card.
The best technical defense against phone scams is a call-blocking app like RoboKiller or Hiya, which identify and block known scam numbers before your phone rings. But technology isn't foolproof — the most important defense is knowing that any call demanding immediate action, payment via gift card, or personal information is a scam, regardless of who the caller claims to be.
Safety 1st Editorial Team
This article is credited to Safety 1st Editorial Team. Safety 1st Consumer Protection has republished this content with attribution.