Information Crimes are Difficult to TraceIt starts with a text message. A local toll road service notifies you that you must pay or be fined and potentially lose your driver's license. These "toll road scams" are part of a vast criminal network.1 |
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Experts estimate such scams defraud people into parting with $500 billion each year, putting it on par with the global illegal drug trade. These criminal organizations generally operate overseas and steal as much money from unsuspecting victims as possible.2 In the case of toll road scams, many people ignore the texts, especially those who don't use toll roads or don't have any in their area. Others make a point to check their toll-paying apps or associated websites rather than respond to the text, then discover that these charges are bogus. Unfortunately, many people are still tricked into paying the phantom toll. |
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So, what's the best defense against these scams? Don't respond. Keep in mind legitimate tolls are not paid via text message but through online portals or direct mail. Refunds are simply not in the cards, and answering the texts can make matters worse. Furthermore, law enforcement may not help much beyond taking your report. These scams are a massive problem worldwide, and unlike other illegal activities like drugs or stolen goods, there are no physical materials to discover or follow up. Companies providing the text services are also reasonably powerless, as the scammers operate from thousands of domains and can easily create more.1,2 |
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Cybersecurity firms report that searches for "toll road scams" have gone up 900 percent, indicating that this scam is widespread and affecting nearly everyone. A good thing about this prevalence is that many people are growing aware and spreading the word. However, these organizations can pivot to new schemes quickly. So, while this particular scam blitz may eventually peter out, you should remain wary of all suspicious-looking texts.1,2 The chart below shows the monetary impact of various scamming techniques in the United States, per the Federal Trade Commission. Texts are the second most reported scam and have the second-highest average dollar amount lost per transaction. |
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Glossary of Scam TermsIt's important to be aware of the language associated with scams. Here are a few phrases from the scamming world to tuck away for reference. Callback Scams: A voicemail message from an unfamiliar number threatens legal action. Don't call unfamiliar numbers back.3 IRS Call Scam: Scammers can pose as IRS agents demanding money or personal information. These criminals may "spoof" an actual IRS number. (Remember: The IRS. will never call you without sending you a letter beforehand.)3 Phishing: Phishing is an attempt to "hook" potential victims by throwing out emails at random that contain malicious software, links, or attachments. The "sender" may pose as a government agency or even a family member seeking emergency funds.3 "Pig-butchering": This is a scam that exploits a person's romantic or financial vulnerability. A relationship is solicited online that builds slowly over time, eventually pressing the victim into fake investment opportunities.2 Recovery Scams: In a recovery scam, a person who has already fallen prey to a scam is targeted again with offers to help them recover the money they lost. In these cases, the original scammers are simply coming back for a second helping.3 Smishing: An abbreviation for "SMS Phishing," smishing is a scam that involves engaging a victim via text messages. The toll road scam is one example.1,3 Spoofing: This involves using false caller ID information to make a target more likely to answer when the scammer calls. Common spoofs include local numbers, businesses, and government agencies.3 Voicemail Hacking: Hackers guess simpler or default passwords and set up new voicemail greetings on your phone to accept collect calls. From there, they use the phone to make international calls.3 |
1. CNBC, March 13, 2025 |
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.