5 common scams hitting Birmingham, including AI fraud + how to spot them

Sponsored

Scammers are getting more creative, from fake social media opportunities to AI-generated voices that sound like someone you know. And as the holiday season approaches, financial scams could become even more common as people look for extra cash or shop for gifts.

To help Birmingham-area residents protect their money and personal information, we spoke with AmFirst‘s Loss Prevention team about the scams they’re seeing and how to avoid becoming a victim.

Their biggest advice? Stay vigilant, verify unexpected requests and don’t be embarrassed to ask for help if something goes wrong.

5 common scams to watch out for in Birmingham

1. Social media scams targeting young adults

AmFirst says scammers are targeting young people on platforms like Instagram with fake opportunities, promising photography gigs and promotional partnerships, especially for people with a significant follower count.

Someone might reach out complimenting your photos and offering to purchase them or pay you to promote a product. They may then send a fraudulent check and ask you to send money elsewhere. If you send the funds before the check is rejected, you could be left responsible for the money you transferred.

• Tip: Be cautious of unexpected offers that involve depositing checks and sending money back or to someone else. Verify the person and the opportunity before sharing account information or accepting payment.

2. Impersonation scams targeting older adults

AmFirst’s loss prevention team is seeing cases across Birmingham involving scammers who pose as legitimate service providers, including companies offering medical alert services.

A caller might claim they can help set up a service but ask for online banking credentials in the process. Once they have a username and password, they can potentially access the account and begin transferring money.

AmFirst specialists also noted that elder fraud can involve caregivers, people acting under power of attorney or other individuals who exploit a position of trust.

• Tip: Never share online banking passwords with an unsolicited caller. Contact the company directly using a verified phone number if you’re unsure whether an offer or request is legitimate.

3. AI voice scams + text bots

Artificial intelligence is giving scammers another way to gain victims’ trust. AmFirst specialists described a recent case in which someone received a call from a voice generated to sound like their cousin.

These scams can make an urgent request for money seem more believable, especially when the caller sounds like a family member or close friend.

• Tip: If someone calls asking for money, verify their identity through a separate, trusted channel. Call the person using a number you already have or contact another relative. If the request came through an app, reach out outside that conversation before sending anything. Consider creating an emergency family password with your family to ensure that you are speaking with a family member and not a fraudster.

4. Holiday loan scams

With the holidays approaching, AmFirst expects fraudulent loan offers to remain a concern. Fake lenders may advertise quick cash online, appealing to people who need extra money for gifts, travel or other seasonal expenses.

These offers can lead consumers to share sensitive personal or financial information with scammers.

Tip: Research lenders before applying for a loan, and be wary of unsolicited offers that promise fast cash. If you suspect you’ve shared information with a fraudulent company, contact your financial institution promptly.

5. Cell phone cloning

Cell phone cloning is another fraud trend to watch, particularly among older adults who may not realize their phones can be targeted.

Cell phone cloning and SIM swap fraud occur when a scammer takes control of your phone number or device credentials to intercept calls, texts, and two-factor authentication (2FA) codes. As scammers find new ways to access personal information and accounts, understanding the risks associated with your phone is an important part of protecting yourself from fraud.

• Tip: Be cautious about unexpected messages, links and requests for personal information. If you notice unusual activity on your phone or accounts, contact your mobile carrier and financial institution to investigate.

What to do if you’ve been scammed

Fraud can happen to anyone, regardless of age or how carefully they manage their money.

Scammers often spend time researching their targets and building trust before making a request. One specialist we spoke to even recalled a romance scam that unfolded over three years before the scammer began attempting to obtain money.

To avoid falling victim to fraudulent activity, here are a few things AmFirst recommends:

• Consider a credit freeze. Contact the major credit bureaus to learn how to freeze your credit, which can help prevent someone from opening new credit accounts in your name.
• Protect your personal information. Never share banking passwords or verification codes with unexpected callers or messages.
• Verify before you send money. Take a moment to independently confirm requests involving money, even when they appear to come from someone you know.
• Contact your financial institution quickly. If you think you’ve been scammed, explain what happened + what information you shared. Acting quickly may help limit further losses.

If a member reports suspected fraud, AmFirst works hard to find out how to address the situation and prevent further loss.

“When we receive a fraud case, our options are essentially to prevent further losses, recover the funds or, unfortunately, sometimes take a loss. Every situation is different, so we look at the circumstances and determine the best way to respond.

That may mean monitoring online activity, blocking suspicious transactions, recommending that a member open a new account or taking steps to secure an account while we investigate.

Loss Prevention Team, AmFirst

If something feels off, pause and verify before acting. And if you think you’ve been targeted, reach out to your financial institution for help.

Not an AmFirst member? Click here to get started.

Sponsored by:

AmFirst is federally insured by the NCUA