Is that person asking for your information who they say they are? If something feels off, it probably is. Here’s how to tell.
Quick takeaways
- Get familiar with types of imposter scams and what they all have in common (a person acting like someone they’re not).
- Understand what red flags to look for, such as words that trigger fear or urgency.
- Take proactive steps to protect yourself when something feels off.
Picture this: You receive an email with an alarm-ringing subject line about your account. The message goes on to say your account will be suspended unless you act immediately via a provided link. It seems odd your account would be canceled, but you also don’t want to lose access.
Do you click the link?
While our hyperconnected world makes it easy to take care of financial tasks in just a few clicks, it comes with a need for greater vigilance about who we share information with, what we respond to, and, yes, what links we click on.
While you may have a strong password and generally follow cybersecurity best practices, we can all be vulnerable to imposter scams.
What is an imposter scam?
$1.1B
The amount Americans reported losing in 2023 to scams impersonating well-known businesses and government agencies.
An imposter scam is when a person calls, texts, or emails you acting as if they’re someone they are not—typically a person of authority—to obtain your personal or financial information. These are also referred to as fraud scams or impersonation scams.
In short, that person is not who they say they are. Fortunately, there are ways to detect these scammers and prevent a financial setback.
“Protecting your financial health starts with being savvy and understanding how scammers operate,” says Meg Anderson, vice president and chief information security officer at Principal®. “Knowing the warning signs not only safeguards your own assets but also contributes to a safer and more secure financial environment for everyone.”
Let’s go over ways to protect yourself together.
Get familiar with common scams.
According to the Federal Trade Commission (FTC), fraudsters most commonly impersonate well-known businesses and government agencies—such as the Social Security Administration, IRS, and Medicare—accounting for $1.1 billion in losses for Americans in 2023.
Once primarily done via phone call, imposters are increasingly using text and email communication in attempt to get you to send money or obtain your information.
These scammers may say you owe money to the IRS or other government agency. They could also pretend to be a company you’re familiar with, say your internet provider, or present as a charity asking for donations.
Other common methods include fake account security alerts, subscription renewals, problems with the law, package delivery issues, and giveaways, discounts, or money to claim.
You can learn more about trends in scams on the FTC’s website.
Listen and look for red flags.
There are some telltale signs of a scam—whether it’s conducted via email, text, or phone call.
- Words that trigger fear or a sense of urgency (e.g., “urgent,” “attention needed,” “warning”)
- Requests for personal information including your Social Security number, date of birth, Medicare ID, credit card numbers, and bank numbers
- Grammatical errors, misspellings, or awkward phrasing, which can be found nearly anywhere, such as email copy, URLs, signoffs, and email addresses
- Requests to wire money or pay with a gift card
- An ask for secrecy
Get a call or email from Principal? We will never ask you for your password via email or phone.
Protect yourself.
If something feels off, it probably is. Some tips to stay safe include:
- Confirm the legitimacy of who is trying to reach you. Hang up or refrain from clicking that link in the message. Look up and use the service numbers or emails on official websites or statements you receive to confirm the source.
- Don’t rely on caller ID. People can impersonate phone numbers through a technique called ID spoofing.
- Never share personal information, including a password or verification code, until you’re 100% sure who you’re speaking to.
- Report scams. You can report all types of fraud to the FTC.
Security for your Principal retirement accounts
Principal offers a customer protection guarantee to reimburse participants of employer-sponsored retirement accounts for losses from unauthorized activity occurring through no fault of their own.
If you suspect someone is impersonating Principal, call our fraud hotline at 800-642-3788 or report unethical or fraudulent activity online.
What’s next?
If you haven’t already, check that you have access to your Principal account and set up multi-factor authentication as an added layer of protection.
