When it comes to money, playing offense and defense is essential. Unfortunately, hidden in plain sight are many financial dangers, including scams targeting Latinos. Protecting yourself and your family is one of the most important things you can do to protect your savings and investments.
Scams can happen to anyone, but Latinos are often targeted because scammers take advantage of trust, language barriers, and a desire to help families or improve their lives. In addition, embarrassment or fear of going to the police will stop them from reporting it.
According to a recent study by AARP, about 40% of Latino adults have been targeted by scammers.
These scams can steal money, personal information, and even confidence in banks and other essential institutions. You can protect yourself and your loved ones by learning how these scams work and what to watch for.
So, let’s discuss.
Why Scammers Target Latinos
Latino families work hard to support their futures and, in many cases, loved ones back home. Scammers know this and often use tricks like speaking Spanish or pretending to be from trusted organizations.
Some people may not be familiar with the U.S. financial system, making it easier for scammers to take advantage of them.
About 30 years ago, my then-stepmother’s father called, upset that someone had scammed him out of $5,000. At the time, he thought he could buy a “winning” lottery ticket from a man who said he couldn’t cash for some reason. I forgot how much the ticket was supposedly worth, but the amount he paid would have been only a fraction of the winning.
It turns out it was a bogus ticket.
While he lost the money, it taught me a lesson. If it’s too good to be true, then it probably is. artists know this, so they entice their victims with the benefits if they just play along. People begin to see dollar signs, and they forget all common sense and reasoning. When this happens, you are a prime target for scammers.
Scams Happen every day. Latinos Are Particularly Vulnerable.
What happened to my then-step-grandfather is fairly common. Like many others, he was too afraid to report what had happened to the authorities. Fortunately, it didn’t ruin him financially, but the loss hurt and was devasting.
Common Scams Targeting Latinos
When Latinos do report, they report higher incidences of government impostor scams, utility scams, and grandparent scams compared to other groups.
Below are some common scams that target Latinos.
1. Fake Immigration Services
Some scammers pretend to be immigration experts or government officials, offering to help with visas, green cards, or citizenship for big fees. Often, they do nothing or disappear after being paid. If you have a parent or family member with limited English-speaking skills, talk to them about this type of scam.
How to Avoid:
Always check if someone is approved by the government to help with immigration.
Use the USCIS website to find licensed professionals.
2. Fake Job Offers
I probably get a dozen or so emails and voicemails every month targeting me to get a job, but the job first requires me to invest in training.
Fake job offers are common. These scammers promise high-paying jobs but ask for money upfront for training, equipment, or applications. Once you pay, the job disappears.
How to Avoid:
Research the company before paying any fees. Legitimate employers don’t ask for money.
Use trusted job websites like Indeed.com, Better Business Bureau, and TrustPilot.
It’s so easy these days to check out sources. Don’t be afraid to do so. Additionally, never rush into anything. If people seem pushy, then that should be a giant red flag.
3. Money Transfer Scams (Remittances)
Many Latinos send money to families abroad, and scammers use fake remittance services to steal funds or add hidden fees. This scam has existed since the first person sent money back home through wire services.
How to Avoid:
Stick to trusted services like Western Union. Others you may want to consider are Wise or Remitly.
Compare fees and exchange rates before sending money.
How Scammers Trick People
Apurate!
Scammers often use trust and language to get what they want. They might speak Spanish to sound familiar or pretend to be from a government agency. They also use fear and urgency, saying things like, “Act now, or you’ll lose your chance!”
Scammers often use clever tricks to steal money by exploiting trust, fear, or urgency. They might pretend to be officials from government agencies, trusted businesses, or even family members in need.
Scammers frequently create a sense of urgency, pressuring victims to act quickly without thinking, such as paying immediately to avoid fines or secure a once-in-a-lifetime deal. They may also use fake websites, emails, or phone calls to appear legitimate, often speaking in Spanish to build trust. These tactics make it harder for people to spot the scam, leading to significant financial losses. Staying informed and cautious is key to avoiding these schemes.
How to Stay Safe
Get Your Phone Number of the Do Not Call Registry
The National Do Not Call Registry is an important first step in stopping unwanted calls. You can easily sign up your phone at https://www.donotcall.gov/
Verify Before You Pay:
Always double-check offers, especially if someone asks for money upfront. Verify – look them up online and call back later.
Protect Your Information:
Don’t share personal details unless you’re sure the person or company is legitimate.
Report Scams:
If you think you’ve been scammed, contact the Federal Trade Commission. If you are too afraid, tell someone in your family or friend and see how they can help. Sometimes, having a trusted friend or family member to discuss this with is key to getting further help.
Contact Your State Attorney General’s Office
Every state has an attorney general’s office, which handles complaints about fraud, scams, and unfair business practices.
What You Can Report:
- Consumer fraud (e.g., scams, false advertising, predatory lending).
- Identity theft or data breaches.
- Unethical practices by businesses or landlords.
How to File a Complaint: Visit your state’s Attorney General’s website or contact their Consumer Protection Division.
Protect Yourself and Your Family
Scams can be scary, but with the right information, you can stay safe. Talk to your family about these tricks, and encourage them to double-check offers before giving away money or information. By sharing this knowledge, we can keep our community stronger and safer.
I hate bullies. Scammers are a particular type of bully who wakes up every morning and tries to figure out how to ruin someone else’s life. Protecting yourself (your money, health, and financial stability) is a key to Smart Latino Money practices.
