Every year, thousands of Americans lose money to numerous scams. In 2024 alone, the Federal Trade Commission received 2.6 million fraud reports, equating to a total loss of $12.5 billion. According to their data, one in three people involved in a scam lost money, while 44% of those who lost money from scams were between 20 and 29.
Understanding which scams are most prevalent is key for knowing how to avoid them. According to the FTC, these were the five most common scams in 2024.
Imposter Scams Remain Top Problem
Among all the scams that target the public, imposter scams remain the most prevalent. Imposter scams work by impersonating someone you would trust – like a law enforcement agency or government service – to convince you to send money in the form of gift cards or cryptocurrency. While they may claim it’s to satisfy a fine or secure your funds, the only result is theft from your bank accounts.
How to avoid: Law enforcement and government agencies will never call you on the phone to inform you of a problem or create a resolution. If you have doubts about the legitimacy of any caller, hang up and call back the official listed number to verify any information.
Online Shopping Scams Still Relevant
Online shopping has changed the way we buy everything from clothes to computers and everything in between. But with the meteoric rise of social media advertising, it can be difficult to discern which websites offer legitimate deals, and which ones are only out to steal your credit card information. One wrong step and your identity could be compromised.
How to avoid: Before buying anything, be a smart consumer by doing your research. If you clicked through on a social media ad, check that the website matches the retailer’s name. Look for high-pressure tactics, like short countdown timers, misspellings, or a website that doesn’t look right. If it feels too good to be true, close the site and go through a legitimate seller.
Business and Job Opportunity Scams on The Rise
More and more of us are going to the Internet to look for our next jobs, but even that can be dangerous. Between fake job postings and “recruiters” reaching out by text offering positions that require candidates to pay for their own materials, there were 105,000 reports of job and employment scams in 2024, costing victims over $500 million.
How to avoid: Use a spreadsheet or another form to keep track of all the positions you have applied for at which company. If you don’t recognize the company reaching out to you, or can’t find their recruiter online or using LinkedIn, don’t respond – it could very easily be a scam.
Investment Scams Reach All-Time High
In the current economy, everyone is looking for a place to safely grow their money. Scammers know this and will take many different routes – ranging from romance scams to social media – to steal money from unsuspecting investors hopeful to secure their financial future. In 2024, Americans lost $5.7 billion to investment scams.
How to avoid: If you’ve never met them in person and can validate their expertise and success, then it may not be a smart move to trust their investing advice. When it comes to securing your investing money, always work with a financial advisor with verifiable credentials through the Securities and Exchange Commission and BrokerCheck by FINRA.
Internet Service Scams Remain Prevalent
Have you ever gotten a call from someone claiming to be from your internet service provider, offering to cut your bill in half if you can verify your account information, including your Social Security Number? If they ask you for personally identifiable information or a code texted to you, they aren’t trying to lower your bill – they may be trying to steal your identity instead.
How to avoid: If someone claims to be calling from your internet provider and is demanding information, don’t give it to them and hang up. Instead, call your provider directly to determine if the offer was valid, or just a scam all along. It’s better to be safe than sorry.
If you are concerned about being the victim of fraud, the SESLOC Fraud Center can help you learn more about common scams, how to recognize them, and how to avoid them. If you do become tied up in a scam, the Fraud Center provides resources to report your fraud and work to get your identity back. SESLOC members with HomeFREE CheckingTM are protected by our Fraud Detection and Notification System on debit and credit card, as well as access to an Identity Theft Program from NXG Strategies1. It’s just another way we help members save.
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