You’re sitting at home relaxing when your phone rings. You look at the caller ID and it’s a number you don’t recognize. Should you answer it?

Phone scams are more prevalent than ever these days. Scammers use ever more sophisticated tactics to try and trick people out of their hard-earned money.

In this guide, I’m going to take an in-depth look at the most common phone scams circulating today. More importantly, I’ll share real-life strategies and tips for identifying these scams so you don’t get duped.

The Stats on Phone Scams Are Staggering To show just how serious the phone scam problem has become, here are some startling stats:

• Americans lost $609 million to phone scams in 2022 (Source: TrueCaller)
• Also, about $8.8 billion in total was lost to fraud in 2022 (Source: FTC)
• TrueCaller also report that Florida, Nevada and Delaware have the highest rate of phone scams per capita
• Tax scams are by far the most common phone scam according to FTC.

Now let’s dive in and look at the 9 most widespread phone scams you need to watch out for.

9 Phone Scams You Need to Know About in 2024

Phone Scam #1: The IRS Scam

This is hands-down the biggest phone scam around. A scammer will call you up claiming to be from the IRS and say that you owe back taxes. The caller will threaten that if you don’t pay immediately via gift cards or wire transfer, the police will arrest you.

Warning Signs:

• Caller ID shows IRS
• Aggressive caller demands payment right away
• Threatens arrest if you don’t comply

How to Handle It:

Know that the real IRS will never demand payment over the phone or threaten arrest. They will contact you first by mail. Just hang up.

Phone Scam #2: The Tech Support Scam

You get a call from someone claiming to be a technician from Microsoft, Apple or some other tech company. They say there’s a problem with your computer that they need to fix remotely. Once they’ve gained access to your machine, they can install malware or steal personal info.

Warning Signs:

• They use branded names like “Microsoft Windows Support”
• Claim there’s an urgent problem with your device
• Ask for remote access or to download software

How To Handle It:

Tech companies like Microsoft never make unsolicited calls about computer problems. Hang up and report it to the real company.

Phone Scam #3: The Unclaimed Prize/Lottery Scam

“Congratulations! You’ve won a free vacation or cash prize!” That’s how this call usually starts out. But to claim your winnings, you need to pay upfront fees or taxes first via wire transfer or gift cards. Of course, there is no prize.

Warning Signs:

• You didn’t enter any real lottery or contest
• They pressure you to pay fees to claim your “winnings”
• They use fake names like “National Sweepstakes Bureau”

How to Handle It:

You can’t win a legitimate prize or lottery that you didn’t enter. It’s a scam to get your money. Just hang up.

Phone Scam #4: The Charity Scam

After a major natural disaster or crisis, scammers move quickly to take advantage. They call up pretending to represent a legitimate charity organization and ask for donations via cash, wire transfers or gift cards.

Warning Signs:

• Pushy for an immediate donation with no information sent first
• Follows natural disasters or crises closely
• Thanks you for a donation you never made

How to Handle It:

Before donating to any charity by phone, get their exact name, web address and credentials. Then research them yourself instead of donating over the phone.

Phone Scam #5: The Loan Scam

With this scam, you get a prerecorded call saying “Congratulations! You’re eligible for a low interest loan!” Then you speak with a live person who says you need to pay an upfront fee via wire transfer or gift cards to receive the loan.

Warning Signs:

• You didn’t actually apply for a loan
• They want you to pay upfront fees
• Intense pressure to take the offer right away

How to Handle It:

Legitimate lenders will never ask you to pay money upfront before granting you a loan. It’s an advance fee scam to take your cash.

Phone Scam #6: The “Can You Hear Me?” Scam

This is a very sneaky one. The scammer calls you and simply asks “Can you hear me?” If you say “yes”, they record your voice and hang up. They can use your voice signature to authorize unwanted charges on your account.

Warning Signs:

• Caller just asks “can you hear me?”
• Doesn’t identify themselves or their company
• Hangs up after you respond yes/no

How to Handle It:

Never respond “yes” to this question from an unidentified caller. Just hang up.

Phone Scam #7: The Bank Account Scam

A scammer pretending to be from your bank calls and says there’s been suspicious activity on your account. They may know details like your name, address and partial account number to seem legitimate. Then they’ll try to get you to “verify” your account details.

Warning Signs:

• They have some of your personal/account details
• Ask you to verify or provide your full account number
• Claim your money is at risk unless you verify info

How to Handle It:

Banks will never ask for account details over the phone like this. Just hang up and call the number on your bank’s website.

Phone Scam #8: The Relative in Distress Scam

You get a frantic call from someone claiming to be a relative saying “I’ve been arrested/in an accident, and I need money for bail/rent a room.” It’s really a scammer trying to scare you into sending them cash.

Warning Signs:

• Caller doesn’t identify themselves by name
• Claims an emergency situation out of nowhere
• Insists you wire cash to help them ASAP

How to Handle It:

Ask some questions that would be hard for a scammer to fake an answer to, like “What’s my mother’s maiden name?” Don’t ever wire cash based on this type of panicked request.

Phone Scam #9: The Robocall

While robocalls are annoying, some are actually scams trying to get you to speak to a live person to sign you up for shady services, fake vacation deals, or get your credit card number.

Warning Signs:

• Call transcript repeats if you don’t respond
• Asks you to press 1 or another digit to speak to someone
• Claims you’re a “winner” who has to take action

How to Handle It:

Ignore robocalls and never press any numbers. If you do engage, you may get more calls from scammers who know your number is active.

How to Protect Yourself From Phone Scams: 10 Tips

1️⃣ Don’t answer calls from unknown numbers. If it’s important, they’ll leave a voicemail. Scammers rarely leave voicemails these days.

2️⃣ Install a call blocking app like Truecaller, Hiya or RoboKiller on your smartphone. These apps can automatically block millions of known scam numbers.

3️⃣ Sign up for the National Do Not Call Registry to cut down on legitimate telemarketing calls. While it won’t stop scammers, it reduces overall call clutter.

4️⃣ Never give out personal info like account numbers, passwords or your Social Security number over the phone unless you initiated the call to a trusted source.

5️⃣ Don’t trust your caller ID. Scammers can easily spoof any number they want using caller ID spoofing to disguise their real identity.

6️⃣ If you get a weird call, don’t engage — just hang up. Scammers will try to keep you on the line as long as possible to wear you down.

7️⃣ Be extra cautious about any call requesting payment via gift cards or money transfers like Western Union. These are favorites of scammers.

8️⃣ Use online resources like the FTC’s Consumer Information site to verify charity legitimacy before donating over the phone.

9️⃣ Ask the caller to give you information — never provide any first. Scammers want to get you talking so you’ll slip up and reveal personal info.

🔟 Talk to your kids about phone scams and how to handle suspicious calls. Older adults are often preyed upon, but anyone can fall victim.

A Story About My Mom and a Phone Scam

I want to share a personal story about how my own mother almost fell victim to a phone scam last year. It shows just how sneaky and persuasive these scammers can be — and why you always need to stay vigilant.

My 72-year-old mother got a call that looked like it came from my cell phone number. When she answered, a young man was breathing heavily on the line.

Then he said in a muffled, frantic voice: “Mom, I’m in serious trouble. I accidentally rear-ended another car while driving and the other driver is saying I was drinking. They called the police and I got arrested for DUI. I need to pay $5,000 right away for bail or they’re going to keep me in jail.”

My poor mother was completely caught off guard. At first she thought it really was me in trouble. The caller even called her “Mom” and was pleading for her help, saying he had no one else he could call. It sounded so convincing.

Then the “bail bondsman” got on the phone and told my mother she needed to go to a store right away and purchase $5,000 worth of Amazon gift cards. Once she got the gift card numbers, she was supposed to read them over the phone to get “me” out.

Fortunately, my mother’s instincts kicked in at this point and she realized something was off. We have a family code word for emergencies, and this caller didn’t use it. She told them she needed to call them back and hung up.

When my mom tried calling my phone number, it didn’t even ring — it was out of service. That’s when the truth hit her: it was all an elaborate relative in distress scam. She instantly felt relief that I was safe, but was disgusted at how easily she was almost duped out of $5,000.

The Bottomline on Avoiding Phone Scams

Phone scams aren’t going away anytime soon. If anything, the scammers are only getting smarter and more sophisticated each day. Their tactics are becoming harder to detect as they take advantage of new technology and personal information.

That means we need to stay one step ahead of them by:

• Educating ourselves on the latest scam techniques
• Questioning any unsolicited phone requests for money or personal info
• Discussing phone scams with friends and family to raise awareness
• Using call blocking apps and services to filter out untrustworthy numbers

Scammers are counting on people to fall for their cons due to fear, haste, or just basic human nature to trust others. If we stay vigilant and keep our guard up, we can avoid becoming the next victim.

Remember, if something seems suspicious or too good to be true during an unsolicited phone call, it’s absolutely okay to hang up. No legitimate company will ever try to rush or pressure you during normal business.

When in doubt, hang up and verify through official channels that a request is valid. Better to be rude and safe than polite and scammed out of your hard-earned money.

Recommended Article: Common Online Scams: How to Spot Them and Protect Yourself