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Top Fraud Trends and Protecting Yourself

In today's digital age, the risk of falling victim to various forms of fraud is higher than ever before. According to the Federal Trade Commission, consumers reported a loss of which was a 30% increase in comparison to the previous year. Fraudsters are continually evolving their tactics to exploit vulnerabilities in the systems we use daily. Education is the most important safeguard to not fall victim to scams. Let’s explore the top 3 forms of fraud and how you can protect yourself.

Phishing Attack

Phishing attacks remain one of the most popular forms of online fraud. These scams involve fraudulent emails, messages, or websites that trick individuals into revealing sensitive information like passwords, credit card numbers, and personal details. This form of fraud claimed the top spot for highest per person losses at an average of $1,400. Phishing has two other closely related types of fraud that have the same intention but will try through mediums other than email. Smishing is a form of phishing but through text message and vishing is a form of fraud that occurs through fraudulent phone calls.

Protecting yourself:

• Always verify the sender's authenticity before clicking on links or downloading attachments.

Online Shopping Scams

Online shopping sales exceeded $800 billion in the U.S in. 2022 and over $5.5 trillion worldwide. With that much revenue and the holiday season upon us, scammers are becoming more interested in e-commerce fraud. This form of fraud accounted for nearly $400 million in loss to U.S. consumers. Fraudsters set up fake online stores to steal credit card information and personal details. According to a study done by the Better Business Bureau, 40% of online shopping scams originate from a link or ad on social media.

Investment and Cryptocurrency Scams

As digital currencies gain popularity, so do cryptocurrency scams. Cryptocurrency is a highly unregulated market which gives fraudsters free reign. One reason investment scams are popular is because the lack of knowledge about investing is preyed upon. These types of scams usually involve promises of high returns and low risk in a short amount of time. In 2022, investment scams accounted for more than $3.8 billion in loss to consumers which was more than any other category.

Protecting yourself

• Conduct thorough research before investing in cryptocurrencies or any investment opportunities.
• Know when to consult an investment advisor.
• Be cautious of unsolicited investment offers and “get rich quick” schemes.
• Only use reputable cryptocurrency exchanges and wallets.

Staying observant and informed is essential in safeguarding yourself against the ever-changing landscape of fraud. By staying informed about the top fraud trends and implementing security measures, you can significantly reduce your risk of falling victim to scams. Remember that education, awareness, and precautions are your best allies in the fight against fraud.

Sources:

• https://public.tableau.com/app/profile/federal.trade.commission/viz/FraudReports/FraudFacts
• https://www.aarp.org/money/scams-fraud/info-2019/online-shopping.html
• https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/
• https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-show-consumers-reported-losing-nearly-88-billion-scams-2022