An elaborate scam experienced by a young woman in metro Detroit isn't one you're hearing about every day. But experts warn it's simple enough to have a shot at growing in popularity — so watch out.
In late June, a 29-year-old woman agreed to donate $50 after she was approached at a Walmart by two young men who appeared to be high school students. They told her they were raising money to travel to tour some colleges and, according to the police report, asked if she would be willing to make a donation.
Per their suggestion, the woman used a tap-to-pay contactless payment system on her iPhone. But she later told police she simply assumed she was giving $50. She did not check the exact dollar amount on the payment system.
Later that evening, according to the report she filed with police, the woman discovered after reviewing her account that the transaction ended up being for $1,000 — not $50.
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It's an ongoing scam that all of us need to avoid.
Scammers bet on you being in a rush
You might be living in the moment, even appearing a little distracted. And someone might come up to you with a story — maybe they're raising money for a sick relative; maybe they need to cover the cost of a funeral; maybe they're collecting money for a charity, you name it.
Then, they'll ask for a relatively small donation, and they'll ask you to use tap-to-pay feature on your card or mobile wallet to steal money through your credit or debit card.
Scammers count on us tapping without checking how much is being charged or the business name receiving the payment, experts warn. And they're going to rush you through the process — or know you're in a rush to get your shopping done or get your dinner on the table.
It's a real in-person scam that's costing consumers real money.
One consumer lost $537 on one of these tap-to-pay scams when buying candy in a supposed door-to-door fundraiser for special needs students, according to a Better Business Bureau alert. Another victim lost $1,100.
Prepare a 'refusal script'
Amy Nofziger, senior director of victim support for the AARP Fraud Watch Network, explained that scammers are catching people off guard. The con artists know how to distract you and then quickly charge more money than you've agreed to pay by exploiting tap-to-pay technology.
As more reports of fundraising-related scams arise, though, it's essential to become more guarded when someone approaches you in a seemingly innocent way on the street or going door-to-door in your neighborhood.
"Just like we prepare ourselves with personal safety when we're out in public, people need to prepare themselves for financial safety when we're out in public," Nofziger says.
Be aware that if you're out in a parking lot, she said, someone might come up to you and give you a sad story about something and ask for a donation.
"Have a refusal script," Nofziger advises.
Be prepared to say something like, "I do not give money to unknown organizations or people I don't know."
Or, just walk on by, as superstar Dionne Warwick would tell you. Keep moving, do not engage and hold tight to your phone or tap-to-pay cards when you start to hear a stranger sharing their sob story on the street.
A red flag of a tap-to-pay scam is that the person attempting it often refuses to take cash, Nofziger says. If you give cash, you might lose $5 or $10 to a crook. But if you offer money via a mobile wallet, the risk is much higher.
Nofziger says we might start to see some more in-person fraud because most people are now well-trained to not answer calls from unknown numbers. Or if they do pick up, they're more likely at some point to hang up on someone calling out of the blue and claiming you owe money for your taxes or utilities.
But we're more uncertain when someone is standing in front of us.
"It's harder to say no," Nofziger says. "That's why we have to practice our refusal script and our no."
She urges people to call the AARP Fraud Watch Network helpline at 877-908-3360 if they suspect a scam or if they've lost money to a scam. Fraud specialists can help guide you on what steps to take next.
If you think you’ve been scammed, report the charges to your bank or card company as soon as you realize you've lost money. You want to stop more fraud from taking place and to see if a refund is possible.
