Every year, millions of Americans are victimized by phone, internet, and in-person scams. The FBI and the Global Anti-Scam Alliance estimate that just over $1 trillion was lost to criminals in 2024 alone. Here are some of the more prominent scams to watch for in the coming months.
Imposter Scams
The Federal Trade Commission estimates that nearly 20% of those targeted by this scam lost money. These scams often target the elderly by impersonating family members, love interests, company representatives, or government agents. The criminals either pretend to be the person they are impersonating or they use AI, which can closely mimic the voice and inflection of the person they are trying to duplicate. Once the criminal has fooled the victim, they ask for or demand money as well as access to accounts.
How to protect yourself: Don’t trust every phone call, email, or text message you receive. Instead, hang up and call the person or individual back using a phone number you know and trust.
Credit Repair Scams
Credit repair scams target people with damaged or low credit scores, offering to fix their credit fast. Those criminals take the person’s money and do nothing (or very little) to help improve their credit. Additionally, a person’s credit card details are often stolen and sold to the highest bidder.
How to protect yourself: While it won’t be overnight, you can do your own credit repair for free. Simply download a copy of your credit report at annualcreditreport.com, look for duplicate accounts, inaccuracies, or any active accounts that should be closed. Fix errors by reporting them to Equifax, Experian, and/or TransUnion.
Phishing and Smishing Scams
All emails and text messages could be scams waiting to happen. Email scams (phishing) and text scams (smishing) use links or attachments that could affect your computer or take you to a fraudulent/fake website. That site is designed to trick you into sharing your login name and passwords.
How to protect yourself: Carefully review all emails and text messages. Are you certain the sender is authentic? If not, delete it and call the company or individual directly to authenticate the message.
Cryptocurrency Scams
The idea of a currency that is digital AND just like cash can seem ideal to a lot of people. However, cryptocurrency is not backed by the government and is prone to scams. These include people using cryptocurrency to defraud victims out of their belongings and money. Criminals will also promise big profits if you buy a large amount of cryptocurrency.
How to protect yourself: Don’t accept cryptocurrency as payment unless you are certain you know the person or entity sending the payment. Additionally, don’t buy into cryptocurrency unless you are okay with losing the money.
Employment Scams
This scam uses legitimate job postings to steal money and personal information. Criminals set up fake job openings and then invite people to a virtual interview. After the quick interview, the victim is offered the job, but with that offer comes recruitment and employment fees. Other fees may include the cost of a computer, equipment, and other electronics. However, because the job is not real, the criminal will simply pocket the money and the job seeker’s Social Security number.
How to protect yourself: Do your homework. If a job offer sounds too good to be true, it probably is. If a company is asking for money to begin your employment, it may be time to look elsewhere.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.