Title: Increase in Scammers Using Technology to Trick Americans Into Losing Money
Subtitle: Steps to Protect Your Finances and Personal Information
In the modern digital age, scammers are leveraging technology to swindle Americans out of their hard-earned money. However, there are precautionary measures that individuals can take to safeguard their finances and personal information. Recent data from the Federal Trade Commission (FTC) reveals a significant rise in consumer-reported fraud losses, reaching a staggering $8.8 billion in 2022, marking a 30% increase compared to the previous year.
One of the primary factors contributing to these losses is the prevalence of investment scams, particularly those involving cryptocurrencies, which accounted for over $3.8 billion in losses – double the amount reported in 2021. Surprisingly, while young adults between the ages of 20 to 29 reported more frequent monetary losses, older adults aged 70 to 79 experienced significantly higher losses when they did fall victim to scams. Retirees often possess valuable assets such as savings, pensions, life insurance policies, or property, which scammers target.
Scammers have adapted their techniques to exploit the digital economy, utilizing various channels such as social media, text messages, phone calls, and emails to contact their victims. Additionally, online payment platforms, applications, and e-commerce websites have become fertile grounds for fraud. Despite their evolving tactics, scammers frequently employ similar strategies to manipulate victims.
According to Kathy Stokes, Director of Fraud Prevention for the AARP Fraud Prevention Network, scammers typically create an emotionally turbulent state for their targets. This could manifest as fear, panic, or even excitement, coercing victims into making hasty decisions. Amanda Clayman, a financial therapist working with Zelle on fraud issues, advises individuals to pause for an extra three seconds when confronted with urgent requests as it is often a red flag to exercise caution.
To help individuals protect their money and personal information, here are some essential tips:
1. Familiarize yourself with common scams: Being aware of typical scams can act as a defense mechanism. Robocalls, in particular, are known to target vulnerable individuals, such as the elderly, people with disabilities, and those in debt. Experts urge recipients of unexpected robocalls or suspicious text messages to hang up and contact the relevant business or institution directly.
2. Beware of romance scams: Lonely and isolated individuals are often the targets of “romance scams,” which may endure over extended periods, sometimes even years. Warning signs include attractive acquaintance requests on platforms like Facebook, attempts to isolate victims from family and friends, and excessively quick progression into romantic relationships. The assistance of younger individuals in conducting image searches is advised to identify potential scam profiles.
3. Exercise caution with text and email scams: Many attempts to defraud consumers arrive via text or email, using various schemes such as claiming locked accounts or delayed package deliveries. Experts advise against clicking on any unfamiliar links and instead recommend visiting the official website or contacting the institution directly using listed contact information. Devoting a few additional seconds to verify messages can save considerable amounts of money.
4. Recognize common warning signs: Any mention of payment with gift cards should raise immediate suspicion. Legitimate entities would not request large amounts of gift cards or demand card numbers as a form of payment. The Internal Revenue Service (IRS) specifically does not accept gift cards, and individuals should exercise extreme caution when faced with such requests.
As scammers continue to exploit technology for illicit gains, it is crucial for individuals to remain vigilant. By staying informed about common scams, exercising caution with text and email communications, and recognizing warning signs, Americans can protect themselves from falling victim to fraudulent activities.