Fraud has become big business, with global losses estimated to reach $1 trillion in 2024. Almost one in three Americans have been scammed, with an average loss of $1,600 per victim.
Now more than ever, you need to stay vigilant to protect your personal and financial information. Here are the top scams targeting consumers and how you can avoid them.
Email Is the No. 1 Platform Used for Fraud
Email scams use the same old tricks in new ways. They can convince you into giving out personal information, infect your device with harmful software, or promise big winnings for a small fee.
A Phishing Refresher
Phishing emails appear to come from real companies or people you know. They ask you to click on a link to change your account information or confirm a transaction. Once you click, you’re directed to a fake website designed to steal your personal data.
Malware scams are emails that come with attachments. If you open one, it installs malicious software on your device. This software can then be used to steal your data, track your online activities or even hold your files for ransom.
Don’t Take the Bait
To protect yourself from phishing ploys, never click links or open attachments in emails from people you don't know. Even if the email is from someone you know, check the email address and look for any warning signs, like spelling mistakes or the sender making their request seem urgent.
In addition, strengthen your email accounts. Use a strong, unique password and enable two-factor authentication. This extra layer of security requires a second form of identification, such as a code sent to your phone, making it much harder for scammers to gain access to your account.
Fake Check Scams
Check scams continue to plague unsuspecting individuals, often targeting seniors. Scammers send counterfeit checks to potential victims, convincing them to deposit these checks into their bank accounts. The scam often involves asking the victim to return some of the money they deposited, usually by wire transfer or another way that doesn’t protect them. They often use excuses like overpayment or a prize. They tell victims to keep the remaining funds as a reward or compensation.
Once the victim deposits the fake check, the funds are available in their account. However, it can take several days for the bank to discover the check is counterfeit. By the time the bank identifies the fraud, the scammer has already received the returned funds, and the victim is responsible for the full amount of the fake check.
Don’t Deposit, There’s No Free Money
Be highly suspicious of any unexpected checks come your way, especially those followed by requests to return a portion of the funds. It’s always a scam. Check if any checks you get are real by contacting the company or person who issued them directly. Additionally, be wary of any urgency or pressure to act quickly, as scammers often use these tactics to prevent victims from carefully assessing the situation. Look for discrepancies such as mismatched addresses, misspelled words or low-quality printing on the check.
Imposter Scams
Imposter scams occur when scammers impersonate trusted entities to exploit the trust of individuals via phishing emails, texts and phone calls. For instance, a scammer might pose as an IRS agent, demanding immediate payment for overdue taxes under the threat of legal action. Alternatively, they might mimic a bank's customer service line, requesting account details to verify information due to a security breach. Legitimate agencies would never ask you to pay what you owe by buying gift cards, picking up cash from your porch or purchasing Bitcoin.
The Imposter’s Threats Aren’t Real
To protect yourself from imposter scams, be wary of unsolicited communications. Legitimate organizations will never ask you for sensitive financial details through an email, phone call or text. If you receive a suspicious request, contact the organization directly using a known and trusted phone number or website to confirm its authenticity.
AI Voice Cloning Scams
AI voice cloning scams use advanced artificial intelligence technologies to replicate the voices of individuals with astonishing accuracy. These complex scams are designed to make you think you’re talking to friends or relatives, government officials or the police.
Don’t Fall for Urgent Requests
One of the signs of an AI Cloning scam is getting a sudden or urgent phone call asking for personal information or money. Check the caller’s identity yourself by calling back on a known number or talking to them through a different way.
Fake Job Scams
Scammers exploit the desperation and hope of job seekers by creating fraudulent job postings promising high salaries with minimal qualifications. These deceptive listings often use fabricated company names or impersonate legitimate businesses to lure unsuspecting victims.
One of the red flags of a fake job scam is the request for sensitive personal information during the application process. Scammers may ask for information like Social Security numbers, credit card information, or bank account information. They say they need this information to check your background or set up direct deposit. Additionally, they may ask for upfront payments, often disguised as "processing fees" or "training costs.”
Always Verify Job Offers
Do your research before applying for jobs by making sure the company and job postings are legitimate. Never pay a fee for a job or equipment, and don’t provide your Social Security number, bank account or credit card numbers. If you encounter a suspicious job posting, report it to the relevant authorities or the legitimate company.
Online Marketplace Scams
Online marketplaces have revolutionized the way we shop, offering convenience and a vast range of products to choose from. However, this digital shopping experience comes with its own set of risks, particularly in the form of online marketplace scams. Fraudulent sellers on popular e-commerce platforms will try and entice you with unrealistically low prices for highly sought-after items, only to disappear once they get your payment.
Shop Safely
Thoroughly research sellers and read reviews critically, looking for any inconsistencies or signs of manipulation. Use secure payment options like credit cards or PayPal for an additional layer of protection. Always be wary of offers that seem too good to be true.
Investing in Cryptocurrency Scams
Investing in cryptocurrency remains popular, enticing seasoned investors and novices with the promise of big returns. Scammers use social media to spread false information and trick potential victims into believing in the legitimacy of their investment opportunities. Additionally, they often impersonate genuine companies or well-known figures within the cryptocurrency sphere to gain trust.
Be Aware of Red Flags
Investment opportunities that seem too good to be true usually are. Promises of guaranteed high returns with little to no risk should immediately raise suspicion. Legitimate investment opportunities will typically provide detailed information about the risks involved and the potential for loss. Another key sign of a scam is the pressure to act quickly or the requirement to provide personal information or funds upfront without proper verification.
Romance Scams
These scams involve fraudsters creating fictitious online personas to manipulate their victims. By using social media platforms and online dating sites, scammers identify potential targets and make contact, often through genuine-seeming profiles and compelling backstories. The first interactions are meant to build trust and emotional investment. Scammers know how to understand human psychology well to make a strong connection.
Over time, these fraudsters gradually introduce financial requests. Some may ask for money directly, citing emergencies or hardships that require immediate financial assistance. Others may ask for private financial information, like bank account details or credit card numbers, pretending to need help with a transaction or investment.
Don’t Be Blinded by Love
To safeguard against romance scams, approach online interactions with a healthy dose of skepticism. Conducting background checks, using reverse image searches to verify profile photos and being cautious about sharing personal details can all help reduce risk.
Fake Parcel Delivery Texts
Fake parcel delivery scams usually involve text messages that look like they come from well-known delivery companies like UPS or FedEx. They ask you to pay a fee to get a package you didn’t expect. The primary objective of these messages is to trick you into either installing malware disguised as a parcel tracking app or directing you to fake websites designed to steal your personal and financial information.
Always Verify Texts
If you receive this type of text, contact the company directly through a trusted phone number or website. Be careful of any requests to download apps or visit websites. Never give personal or financial information unless you know the request is real. Additionally, consider enabling two-factor authentication for any accounts that may be targeted by such scams to add an extra layer of security.
The Gift of Common Sense
Guarding against fraud is part of protecting your financial well-being. Scammers rely on catching you off-guard or using intimidation tactics so you’ll make a decision that could negatively affect your finances.
Practice these simple steps to stay safe:
- Never share passwords, credit card or Social Security numbers unless you are sure the recipient is legitimate and needs it.
- Be careful of unexpected phone calls, emails or text messages asking for personal information.
- Never blindly click on links in emails or texts, even if they seem to come from a familiar source. Hover over the link to see the actual destination URL.
- Before making a purchase online or providing information to a new company, research their reputation through online reviews and consumer protection websites.