Prizes, sweepstakes, and lotteries, along with business and job opportunities are the most common bait used to rip off consumers, especially older consumers.
Here’s a staggering number: reported fraud losses in the U.S. in 2021 increased more than 70% over 2020 to more than $5.8 billion. It seems fraudsters are taking advantage of the vulnerabilities that have come along with a global pandemic.
Newly released data from the Federal Trade Commission shows impostor scams and online shopping scams top the list of 2.8 million consumer reports of fraud. Prizes, sweepstakes, and lotteries; along with business and job opportunities round out the top five fraud categories. And here’s another staggering number: impostor scams created an additional $1 billion loss in 2021 compared with 2020. Consumers over the age of 60 lost larger amounts of money than those under 60, with people in their 80s losing an average of $1,500.
Since impostor scams top the list of fraudulent activity, consumers should take extra steps to protect themselves.
Typically, impostor scams start with an unsolicited phone call, text, email or through social media. To reach older consumers, scammers will send their bait, such as a letter of significant lottery winnings, through the mail. A common tactic is impersonating organizations, agencies, and people you would typically believe or trust. Beware of anyone who states a sense of urgency or consequences if you don’t immediately pay.
Do your due diligence and confirm independently whether an agency or business is legitimately trying to reach you. Hang up and call the agency or business directly to see if there is any real issue you need to deal with.
I have personally received fraudulent calls on my landline where the caller ID has the name of my bank. Scammers use spoofing tools that allow the caller ID to look as if a government agency or specific business is calling in. Hang up on any unsolicited calls with offers of helping to fix computer problems. Often, they will ask you to make a payment or to allow them to remotely access to your computer. This is a classic scam.
Older adults easily fall for scammers, so if you oversee the care of an aging parent or friend, make sure to talk to them. Warn them to avoid answering calls from numbers they don’t recognize, and that if someone asks for personal information they should hang up. If a relative calls them asking for money because they have an emergency, they should hang up and call the relative directly. This way if there is a legitimate emergency you will be able to find out by calling the family member directly.
If you are a victim of fraud, report it immediately to the FTC reporting portal. Your report will be shared with over 3,000 law enforcers. The FTC uses these reports to investigate and bring cases against fraud, scams, and bad business practices. To find out where to report-specific scams and fraudulent activity, usa.gov offers a directory of reporting resources.
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Jeanette Pavini is an Emmy Award winning journalist specializing in consumer news and protection. She is the author of “The Joy of $aving: Money Lessons I Learned From My Italian-American Father & 20 Years as a Consumer Reporter.” Jeanette is a regular contributor to TheStreet. Her work includes reporting for CBS, MarketWatch, WSJ Sunday, and USA Today. Jeanette has contributed to “The Today Show” and a variety of other media outlets. You can follow her money saving tips and ways to give back on Facebook: Jeanette Pavini: The Joy of $aving Community. Find links to her social media and her book at JeanettePavini.com.
