Need to Knows About Fraud

I recently attended a seminar and a webinar about consumer scams and risk reduction strategies to avoid becoming a victim. Below are eight key take-aways:

Fraud Statistics- Approximately three million fraud reports were filed with the Federal Trade Commission in 2025 with reported losses of $15.9 billion. The five top fraud categories were imposters, online shopping, internet services, business and job opportunities, and investments.

 

Government Impersonation Scams- These are imposter scams where scam artists pretend to be from government agencies like Social Security and the IRS. They often demand payment with gift cards or wire transfers and threaten to cut off benefits. Other scammers request personal information that the government already has to “verify” an account. If contacted, hang up or delete immediately.

 

Account Monitoring- It is wise to monitor financial accounts regularly to ensure that there are no errors or irregularities that might indicate identity theft. Use two-factor authentication (2FA), such as biometric data or a texted code, to further strengthen account security.

 

Checking Account Fraud- Paper checks contain a bank account routing number and account number that can be misused if mail is stolen or gets into the wrong hands. Experts advise receiving money, paying bills, or sending money using secure digital payments such online bill-pay platforms and peer-to-peer apps. Always store checkbooks in a secure place (e.g., locked desk drawer).

 

Tech Support Scams- These typically start with pop-up windows that claim that a computer has a virus. The pop-ups contain a “tech support number” and instruct victims to call it. Next, scam artists ask for remote access to the computer to “fix” a problem that does not really exist. They then request payment and personal information for their “service” and have access to sensitive personal data.

 

Scam Prevention Tips- Personal decision rules can help prevent scam opportunities. Examples include letting “potential spam” calls go to voice mail, never letting your credit card out of your sight, never clicking on links from unknown sources, and never sending money to someone that you have not met in person, which is a key part of “romance scams.”

 

Red Flags- A common red flag of scams is being contacted out of the blue and pressured to act fast because an “opportunity” is a limited time offer. Poor grammar and spelling, the use of words like “guaranteed” and “risk-free,” and being asked to pay in an unusual way (e.g., Bitcoin ATMs) are other scam indicators. Common scam targets are older adults and youth and young adults.

 

Tech Tune-Ups-Experts recommend using strong passwords (e.g., JZv5Cmjt! vs. password2468), locking a smart phone when it is not in use, not keeping sensitive personal and financial data on a smart phone, keeping anti-virus software and security updates current on a computer, and not using unsecured public Wifi hotspots (e.g., at airports).

 This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.