5 Ways To Save Yourself Up to $20K in Fraudulent Losses

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Financial fraud is a growing problem in the United States, and one that shows little sign of slowing down as scammers take advantage of more sophisticated methods and technologies — including artificial intelligence.

Consumers reported losing more than $10 billion to fraud in 2023, according to the Federal Trade Commission. That marked the first time fraud losses passed that benchmark and represented a 14% increase from the prior year.

Investment scams alone totaled more than $4.6 billion, the highest of any individual category. The second-highest reported amount came from imposter scams, with losses of nearly $2.7 billion reported. Consumers reported losing more money to bank transfers and cryptocurrency than all other methods combined.

“Digital tools are making it easier than ever to target hard-working Americans, and we see the effects of that in the data we’re releasing today,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, wrote in a February 2024 press release. Following are some hard numbers on how popular scams might affect Americans.

Survey Results on Financial Fraud

GOBankingRates delved deeper into the topic of financial fraud in a survey of 1,141 U.S. adults. Among its findings: About 39% of Americans have been the victims of financial fraud. Of those who have been victims, here’s how much they lost:

• $0.01-$250: 25.76%
• $251-$500: 19%
• $501-$1,000: 18.12%
• $1,001-$2,000: 13.1%
• $2,001-$3,000: 4.15%
• $3,001-$4,000: 3.06%
• $4,001-$5,000: 2.84%
• $5,001-$10,000: 4.8%
• $10,001-$20,000: 4.59%
• $20,000 and over: 4.59%

For those who lost money due to identity theft, a financial scam or financial fraud, here is how they were reimbursed:

• Full amount: 45.63%
• Some, but not all: 23.8%
• Lost all of it: 30.57%

Battling financial fraud requires a commitment to learning what to look for and how to avoid it. Here are five ways to save yourself up to $20,000 in fraudulent losses, according to the FTC:

1. Block unwanted calls and text messages. Your smartphone probably has a function that lets you block calls and messages from people you don’t know or trust. Take steps to block unwanted calls and to filter unwanted text and email messages.
2. Don’t give personal or financial information in response to a request that you didn’t expect. As the FTC noted, honest organizations won’t call, email or text to ask for personal information such as your Social Security, bank account, or credit card numbers. Even if you get a communication from a company you do business with, don’t click on any links. Instead, contact them using a website you know can be trusted or look up their phone number.
3. Resist pressure to act immediately. Honest businesses will give you time to make a decision. If someone pressures you to pay them or provide your personal information, they are probably a scammer.
4. Be wary of certain types of payment requests. Never pay someone who insists that you can only pay with cryptocurrency, a wire transfer service such as Western Union or MoneyGram, a payment app or a gift card. Also, never deposit a check into someone else’s account unless you know and trust them.
5. Speak with someone you trust. If you are unsure about a transaction request, tell someone you know and trust about it. Chances are one of them can help you determine if it’s a scam — especially those who have been fraud victims themselves.

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