How a phone scam led to a huge loss
According to McPherson, the trouble started when she received a phone call from a 1-800 number associated with Wells Fargo to alert her to a serious problem. "Wells Fargo bank informed me there was fraudulent activity," she said. "They will call you if there's fraudulent activity on your account, so I didn't think there was anything out of the ordinary. I've had this happen before."
The scammer told McPherson she'd have to transfer her money out of her account to keep it safe while an investigation was carried out. McPherson believed she'd confirmed that she was actually talking to her bank, so she followed their instructions and emptied her bank account, sending the money via Zelle and a Chase digital wallet.
Although she thought moving the funds would protect them while Wells Fargo investigated the fraud, the reality is that the money disappeared into the accounts of the scammers.
Adding insult to injury, she also explained that the scammers mocked her for falling for their tricks. "Once you're done talking to them, they're all laughing in the background. They are telling you that you’ve been scammed and laughing."
Sadly, McPherson is one of many who have fallen victim to scams in which thieves pretend to be trusted organizations, including financial institutions or government agencies. These scams are called phishing or spoofing scams, and the FBI's 2024 Internet Crime Report revealed 193,407 complaints about them during the year, with victims collectively losing over $70 million.
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Boost your savings nowHow to protect yourself from this scam
Scammers engaged in phishing and spoofing use many tricks to prompt you to act including:
- Calling or texting to tell you your account has been compromised and you need to take action to fix the situation — which often involves sending money or providing personal details
- Sending emails and links to fake websites to convince you to enter your financial credentials, such as forms to "reset" your username or password, because it's fallen into the wrong hands
- Threatening you with arrest, loss of funds, or other harmful consequences if you don't send money immediately
- Claiming you're overdue on a payment and that you'll lose account access if you don't act
Scammers often create a sense of urgency and fear, prompting you to act fast before you have time to think.
Since they can make it look like they're calling from a legitimate number or sending an email from a legitimate source, you can't trust the caller ID or the name on an email. You need to be vigilant in protecting yourself, and there are a few best practices to avoid falling victim to a scam like McPherson did. Specifically, you should
- Avoid answering any phone calls from unknown numbers
- Hang up immediately if someone says they're calling from a bank, government agency, or other trusted source. Find the phone number yourself and call back instead
- Never give out sensitive personal details or passwords over the phone — legitimate companies won't ask for things like PIN numbers, social security numbers, or phone verification codes. Make sure to only enter such information on verified digital platforms
- Never follow a caller's instructions to transfer money, regardless of the threats you hear on the phone
- Avoid clicking on any links in suspicious emails. Always navigate to websites yourself instead by typing in the website address in your browser
By taking these steps, you can keep your savings safe and won't find yourself with the money you worked so hard to work for wiped away like it was for McPherson.
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