Phone return scam targets new device buyers with fake refund calls

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An alarming message has arrived in our inbox about a scam that many people have never seen. Before we get into it, here's an email Gary sent us from Palmetto, Florida:

“This just happened to my friend. This is the first time I have heard about this scam. She bought new phone from Spectrum. 2 days later they called her and said they were from Spectrum and said they accidentally gave her a refurbished phone and not a new one and asked her to send it back, which he did.

“However, that evening she had a feeling that something was wrong. The next day she contacted UPS and Spectrum and confirmed it was a scam and luckily was able to get her phone back. But UPS told her that they had actually changed the return address and the address it was going to once it was shipped. She's just damn lucky she got her phone back. But like I said, this is something new. No one I spoke to had heard of this yet,” the message reads.

This experience shows how quickly scammers evolve. It also highlights how important quick action can be when something goes wrong.

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Fraudsters time the call right after the new phone is delivered to make the story seem real. (Cyberguy.com)

How this new phone return scam works

You can avoid this scam if you know what steps criminals use to carry it out. Here's how they work.

1) Fraudsters track recent purchases

They start by looking at recent phone or cell phone carrier purchases through data leaks, phishing, or stolen shipping information. Since they know when the phone was delivered, they can accurately time the call.

2) They call and tell a compelling story.

Next, they pretend to represent Spectrum or another telecom operator. They claim there was a mix-up and claim the customer received a refurbished device. Since the call is directly related to an actual purchase, the story seems plausible.

3) They pressure the victim to send the phone.

After that they send a prepaid label that looks official. Once the victim sends the phone, they change the destination using UPS or FedEx tools or hacked accounts. As a result, the device is quickly redirected.

4) They take steps to reduce doubts.

Sometimes they even send a second message or call to confirm receipt. This extra touch delays the moment when the victim realizes that the package has been sent to a different address.

5) Quick action saved Gary's friend.

Gary's friend sensed something was wrong. She immediately contacted UPS and Spectrum, allowing them to intercept the shipment before its final delivery.

FAKE AGENT PHONE SCAMS SPREAD QUICKLY Across the US

How to protect yourself from phone return scams

These simple steps will help stop this scam at an early stage and save your new phone safe.

1) Confirm every return request

Always check with your carrier via their official phone number or website chat before shipping your device.

2) Ignore tags sent by callers.

Consider any tag that appears outside of your verified online account to be suspicious as scammers are using it to redirect packages.

3) Dispatch only after confirmation of address.

Use your own shipping and only ship the phone after you have confirmed the correct return address with your carrier.

4) Monitor your blood pressure

Fraudsters use phrases such as “We made a mistake” or “We will credit your account to encourage quick action.” Slow down and acknowledge before you do anything.

5) Add your carrier account PIN.

Create a PIN and enable two-factor authentication (2FA) to protect your account from unauthorized access.

Man holding iPhone 14

The fake return labels look official, leading victims to believe they are sending the phone back to the carrier. (Reuters/Thomas Peter/File Photo)

6) Use powerful antivirus software.

Powerful antivirus software blocks phishing sites and dangerous links that scammers use to steal account information. It also alerts you to fraudulent calls and messages related to known threats.

The best way to protect yourself from malicious links that install malware and potentially access your personal information is to install powerful antivirus software on all your devices. This protection can also alert you to phishing emails and ransomware, keeping your personal information and digital assets safe.

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7) Use the personal data removal service

The data removal service removes your information from people search sites that reveal your address, carrier information, and phone number. Reducing this vulnerability reduces the number of targeted fraudulent calls.

While no service can guarantee complete removal of your data from the internet, a data removal service is indeed a smart choice. They don't come cheap, and neither does your privacy. These services do all the work for you, actively monitoring and systematically removing your personal information from hundreds of websites. This is what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk that scammers will link leaked data to information they can find on the dark web, making it harder for them to target you.

THIS IS WHAT YOU ARE DOING WRONG WHEN SCAMMERS CALL

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8) Check your account for new orders or changes.

Fraudsters sometimes add fake orders or create refund requests on your carrier account. Reviewing your activity can quickly reveal interference. Check your operator account for new orders or changes. Look for return requests, shipping labels, or changes you didn't make.

9) Turn on parcel delivery alerts.

Most carriers and shipping companies allow you to enable text or email alerts. This makes it more difficult for scammers to redirect your package without your knowledge. Enable UPS, FedEx, or USPS delivery alerts. Real-time updates help you detect route changes before your device gets too far.

10) Protect your delivery login

Fraudsters often use stolen UPS or FedEx credentials to change addresses. Protect your UPS or FedEx accounts with strong passwords. This limits the unauthorized access that scammers rely on. Consider using a password manager that securely stores and generates complex passwords, reducing the risk of password reuse.

Next, check if you have email has been compromised in past violations. Our #1 best password manager includes a built-in breach scanner that checks to see if your email address or passwords have appeared in known breaches. If you find a match, immediately change any reused passwords and secure those accounts with new, unique credentials.

UPS truck

Taking quick action with UPS or the carrier can help stop fraud before your package ends up in the wrong hands. (iStock)

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11) Don't read label numbers out loud over the phone.

Some scammers ask victims to read tracking numbers or label information. They use these codes to seize cargo. Never give tracking numbers or label information to anyone who calls you. Fraudsters use these numbers to redirect packages.

12) Report a fraud attempt

Your report helps carriers investigate such attempts. Report any suspicious calls to your carrier's fraud department. Your story can help protect other clients from the same scheme.

Kurt's key takeaways

Phone return scams continue to spread because scammers lurk any time people feel rushed or distracted. When a new device comes out, most of us feel excited and eager to set it up, giving criminals a narrow window of opportunity to strike. By following a few simple steps to review each return request, you can shut down the entire scheme before it even reaches your door. Slow down, check the details and trust your instincts if something doesn't look right. Your caution can prevent you from losing your brand new phone due to a convincing lie.

What scam attempts have you or someone you know encountered recently that others should be aware of? Let us know by writing to us at Cyberguy.com.

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