Financial scams are becoming increasingly sophisticated, with organized gangs and transnational crime enterprises targeting individuals of all ages. Millions of people are unknowingly scammed each year, resulting in unrecoverable losses measured in the billions of dollars. Older individuals are often targeted due to cognitive decline, while teenagers and young adults fall victim because of their online shopping habits and job searches. Even members of Gen Z can fall prey to fraudulent emails, text messages, and phone calls.
Awareness of common scams is key to lowering susceptibility to victimization. Criminals use various tactics to steal identities and assets, such as the government impersonator scam, sweepstakes and lottery scam, phishing emails and texts, computer support scam, romance scam, and grandparent scam. For example, in the government impersonator scam, individuals are threatened with arrest or frozen bank accounts if they don’t pay an outstanding tax liability immediately. The IRS will never demand payment over the phone, text, or email, so this should raise a red flag.
Another common scam is the sweepstakes and lottery scam, where individuals are told they’ve won a prize but must send money to unlock it or pay taxes. This is often followed up with a fake check that bounces after the fraudster has already collected the victim’s money. Phishing emails and texts appear to be from a legitimate source like a bank or retailer, asking for personal information. It’s important not to click on suspicious links and instead visit the company’s website directly to verify any requests for information.
The computer support scam involves pop-up messages claiming an account has been compromised and asking for remote access or payment for repairs. It’s safest to ignore these pop-ups and install an ad blocker for added protection. Romance scams target individuals through online dating and social media, with con artists setting up fake profiles and requesting money for emergencies. The grandparent scam preys on a grandparent’s love by using a grandchild’s voice to request money for a supposed emergency. Confirming the caller’s identity with a codeword or passcode can help avoid falling victim to this scam.
To protect against financial scams, individuals should take the time to learn more about identifying common scams and prevention tips. The Federal Trade Commission website offers valuable resources, accepts reports of fraud and identity theft, and outlines action steps for victims. By staying informed and being cautious of suspicious communications, individuals can reduce their risk of falling victim to financial scams.
