New Jersey residents are defrauded of hundreds of dollars each year, with Hispanic residents being especially at risk due to language and cultural barriers, experts say.
"One of the challenges with the Latino community is for those that have limited English proficiency," said Carla Sanchez-Adams, senior attorney at the National Consumer Law Center. "As a result, there might be...scammy products that are targeted to that community."
Sanchez-Adams explained that other communities with language barriers whose members may be lower income or are new to the country and don't understand how U.S. institutions work might also be at greater risk for fraud.
The impact of fraud can be devastating, especially for the Hispanic community, which tends to be lower income, she said.
"If you're losing that amount of money, that means maybe you can't pay rent, you can't pay childcare, you can't eat, you can't get gas, you can't get groceries," Sanchez-Adams said.
Mosaic spoke to Sanchez-Adams about financial fraud and how to avoid it. Here is what she said.
Q: What are common tactics to look out for?
A: Fraudsters might pretend to be government agencies like the Internal Revenue Service(IRS) and ask for personal information. A fraudster might also pretend to be the FBI and accuse their victim of a crime, saying they need financial information to resolve the issue or find the actual perpetrator of the crime. Immigrants, especially those who are undocumented, might not have a bank account and rely on platforms like Venmo or Cash App to hold their money, which is less secure than a bank account. So when the money is lost, it's unrecoverable. Many fraudsters will prey on victims using urgency to pressure someone to send money.
Q: How can you avoid fraud?
A: Do not click on any link texted or emailed to you that you don't recognize, even if it says it's your bank or utility company. Instead, go directly to your bank or utility company to see if there is an issue. The same goes for phone calls. Never make a spur-of- the-moment decision and transfer money to someone. Fraudsters prey on fear and emotions, so stay calm and give yourself time before making any decisions.
Q: If you are defrauded, what should you do?
A: If you've already transferred the money through Cash App or Venmo, there aren't too many options to get the money back. But if you report the loss quickly to local law enforcement, the Federal Trade Commission or the FBI, you're more likely to recover lost funds. If you send the money via credit card or check, your bank might also help you get your money back.