Published by: USA Today
Online scams have been around for decades but consumer protections remain limited while scammers get more sophisticated, experts say.
The Federal Trade Commission, the federal government’s arm that is in charge of enforcing consumer protection laws reported that Americans lost more than $6 billion to fraud in 2021, and more than 2.9 million people reported losing a median of $500.
In the first three quarters of 2022, consumers lost more than $6 billion, a median of $650. That number is likely to increase once the FTC includes data from the last quarter of 2022.
Identity theft and imposter scams took top spots in both years. Here’s how to protect yourself:
What is identity theft?
Identity theft occurs when someone steals personal and sensitive information such as your name, address, credit cards, bank account numbers, or medical insurance card numbers and uses the information to buy with stolen credit cards or open new ones, open utility accounts, or steal a consumer’s tax refund.
How do you identify an imposter?
Imposter scams have increased during the pandemic. A scammer pretends to be someone you can trust and convinces you to send money. This could be someone pretending to offer a job, a love interest, or even someone from the IRS.
It could also be someone who pretends to be someone else on social media, like an artist, and preys on people’s emotions and vulnerability and offers free services, only to eventually ask for money.
Kathy Stokes, director of fraud prevention at AARP, said scams grew during the pandemic as more people headed online.
And today’s scammers are no longer just loners carrying out a scheme behind a computer, she said. Many scams are now run by “transnational conglomerates” with offices and employees all around the world.
Stokes said education is a critical part of preventing fraud but believes there needs to be a national response, possibly action from lawmakers.
Should I tell people I got scammed?
Stokes encourages people to notify the authorities. Written reports can create a paper trail that could one day lead to a return of money or personal property.
Victims often are reluctant because the nation frames conversations as though the victim is at fault.
Who should I contact if I have been scammed?
The Department of Justice directs consumers to report fraud to their local police department, the state attorney’s office, and the proper investigative agency whether it pertains to health care, lottery, mail, or other industries.
While the FTC takes fraud reports, it doesn’t prosecute individual complaints. If an FTC case includes criminal behavior, the organization informs criminal prosecutors and works with federal, state, and law enforcement agencies.
How can I be safe from online scams?
Stokes advises consumers to research, especially if a purchase or a romantic interest seems too good to be true.
“A person can make you believe in things that aren’t true,” ultimately getting your money or sensitive information, she said.
Also, lock down social media accounts, Stokes said. Do not publicize information that may allow a scammer to manipulate you, or gain information that could allow them to gain your trust or create an identity in your name.
“We all have to understand that crime is everywhere,” she said.