Sources:As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public. (2024, February 9). Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-publicBBB Tip: 10 steps to avoid scams. (2024, June 21). Better Business Bureau. https://www.bbb.org/article/tips/8767-bbb-tips-10-steps-to-avoid-scamsThe Latest Scams You Need to Be Aware of in 2024, By DeNicola, L. (2023, December 30). https://www.experian.com/blogs/ask-experian/the-latest-scams-you-need-to-aware-of/Empowering Fraud Fighters. (n.d.). Financial Industry Regulatory Authority Foundation. https://www.finrafoundation.org/networks-we-strengthen/fighting-fraudInternet Crime Report 2023 by The Federal Bureau of Investigations. (2024). In Internet Crime Complaint Center. https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf National Center for Victims of Crime, Financial Crime Resource Center: https://victimsofcrime.org/financial-crime-resource-center/ Financial Crimes Enforcement Network, FinCEN Resource Center: https://www.fincen.gov/fincen-resource-centerFletcher, E. (2023, October 6). Social Media. Federal Trade Commission. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/10/social-media-golden-goose-scammersIdentity Fraud Cost Americans $43 Billion in 2023. (2024, April 10). American Association of Retired People. https://www.aarp.org/money/scams-fraud/info-2024/identity-fraud-report.htmlIs Fraud Always a Federal Crime? (2024, March 20). Stechschulte Nell. https://www.tpatrialattorneys.com/fraud-always-federal-crime/Criminal Consumer Fraud, Must the Goals of Deterrence and Compensation Be Mutually Exclusive? By The American Journal of Criminal Law, Kirschner, N. M. (1979). https://www.ojp.gov/ncjrs/virtual-library/abstracts/criminal-consumer-fraud-must-goals-deterrence-and-compensation-beRecovering From Online Fraud. National Crime Victim Law Institute: https://ncvli.org/recovering-from-financial-fraud-and-identity-theft-services-for-victims/#:~:text=%E2%80%93Identity%20Theft%20Resource%20Center%20What Are Some Common Types of Scams? (2024, March 13). Consumer Financial Protection Bureau. https://www.consumerfinance.gov/ask-cfpb/what-are-some-common-types-of-scams-en-2092/Resources:FBI Internet Complaint Center: https://www.ic3.gov/FBI Tip Center: http://tips.fbi.govBBB Scam Risk Calculator: https://www.bbb.org/all/scam-prevention/risk-calculatorCybercrime Support Network: https://fightcybercrime.org/Identity Theft Resource Center: https://www.idtheftcenter.org/Financial Industry Regulatory Authority: https://www.finra.org/Report Fraud to the Federal Trade Commission: https://reportfraud.ftc.gov/For additional resources and a list of related non-profit organizations, please visit http://www.somethingwaswrong.com/resourcesFollow Something Was Wrong:Website: somethingwaswrong.com IG: instagram.com/somethingwaswrongpodcastTikTok: tiktok.com/@somethingwaswrongpodcast Follow Tiffany Reese:Website: tiffanyreese.me IG: http://www.instagram.com/lookieboo The Data Points cover art is by the Amazing Sara Stewart. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Wondery Plus subscribers can listen to Something Was Wrong early and ad free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. Although cons, schemes, and fraud can make for intriguing storylines, the true impact of fraud has pervasive detrimental effects on its victims that are not often highlighted in society or media.
Relatedly, the FBI website enlists 18 different common types of fraud and scams on their website. including but not limited to identity theft, business and investment fraud, charity and disaster fraud, property scams, mortgage fraud, extortion, sextortion, adoption fraud, cryptocurrency investment fraud, elder fraud, election crimes, healthcare fraud, mail fraud, holiday and romance scams.
In 2023, the Federal Trade Commission data showed adult consumers reported losing more than $10 billion to fraud, which was the first time that reported fraud-related losses had reached an amount that high. This number is a 14% increase over reported losses in 2022.
Considering these alarming statistics and the increasing use of artificial intelligence to victimize many people at once, the Broken Cycle Media team believes it's essential to highlight the most common cons, schemes, and fraud.
It's important to note that the FTC highlights that anyone can become a victim of fraud, although victims in different age ranges do largely fall victim to different types of fraud. The FTC points out that in 2021, people ages 18 to 59 were 34% more likely than older adults ages 60 and over to report losing money to fraud, with some types of fraud being more common than others.
Younger adults were more likely to fall prey to online shopping scams, which often started with an ad on social media, far more often than any other fraud type. Younger adults also reported losing money on job scams at more than five times the rate of older adults. And with the invention of the internet, the accessibility and ease of committing fraud has increased immensely.
The Federal Trade Commission reports that of all reported fraud from 21 to 23, victims who made initial contact with scammers through the internet were scammed out of a total of nearly $6 billion.
One in four people who reported losing money to fraud from 21 to 23 said it started on social media, and those victims reported losses that reached a whopping $2.7 billion, which is significantly higher than victims that were frauded through other contact methods.
Social media is also being used to increasingly target younger victims, and is the method of communication in 47% of fraud reported by 18-19 year olds. Still, most fraud is actually not reported, which means that these numbers are actually just a fraction of the harm that common cons, schemes, and frauds cause in the internet and social media age.
As Experian highlights, artificial intelligence-powered scams are increasingly important to keep an eye out for. These scams can produce highly convincing emails, phone calls, and texts. They can also create quality deepfakes featuring celebrities or otherwise influential people to trick victims into investing into a business or idea.
AI-powered scams can even trick victims into believing a family member, loved one, or employer is on the other end of the con. Artificial intelligence can also offer the perpetrator the ability to fabricate images, videos, sounds, or other content in the likeness of the victim and potentially use it to extort other victims.
you can report extortion to the police and to your local Federal Bureau of Investigation field office by calling 1-800-CALL-FBI or online at tips.fbi.gov. You can also report threats involving the internet, such as when a mobile payment app is involved, to the FBI's Internet Crime Complaint Center at www.ic3.gov.
Another common scam is the sale of non-existent goods or services, which includes online purchase scams. Scammers will often use mobile payment apps to trick people into sending money or merchandise without holding up their end of the deal. For example, a scammer may offer to sell you concert tickets. or lease you a home, but then never actually give or lease them to you.
A scammer may also purchase an item from you, receive the item, appear to send a payment, and then cancel the payment before it reaches your bank account. These sorts of scams are criminally deemed business fraud. If you think you made a payment to a scammer, contact your bank or the company you used to send the money immediately and alert them that there may have been an unauthorized transaction.
You can also file a complaint with the Federal Bureau of Investigation's Internet Crime Complaint Center at www.ic3.gov. Although there are many different types of scams, the Consumer Financial Protection Bureau offers some things to consider in all cases of fraud.
First, scammers may work to gain your trust, often pretending to be someone you trust or even pretend to be a company or government agency you already know. Scammers will also create a sense of urgency, intimidation, and fear. They want you to send the money before you have a chance to confirm or deny their claims or second guess their choices.
Don't let anyone rush you into giving them payment or sensitive business information. Scammers will also ask you to pay in specific ways. They often demand payment through alternative methods like wire transfers, cryptocurrency, or gift cards. But they can also use peer-to-peer mobile apps and other money transfer options.
Although fraud can be charged criminally and civilly, and each state does so differently, the Department of Justice shares, federal and state laws are not sufficient to deter consumer fraud effectively. Because of this, victims of fraud and consumer scams often report feeling dissatisfied with the way the crimes are addressed.
Victims are often compelled to seek both civil and criminal charges in order to receive more encompassing justice.
However, fraud can be charged federally if and when the fraud committed violates federal law, involves a federal agency, crosses state lines, uses the United States Postal Service or interstate communication methods in their scheme, or if it involves fraud as a means to benefit from a federal program.
Despite the variability in fraud schemes and the way that they're addressed, the Better Business Bureau has some general steps that can potentially help all consumers avoid scams. One tip is to keep your personal information private and, if stored, making sure to do so in a highly secure way. Relatedly, it suggested that users establish passwords that are more complex and not easy to guess.
Also, know that your bank or financial institution will never contact you to ask for passwords or pins. The Better Business Bureau also suggests working with local businesses as frequently as possible. Although local businesses are also capable of fraud, fraud is more likely to occur when distance exists between the patron and business.
The Better Business Bureau also highlights the importance of being careful what you share online. People who commit fraud often weaponize information about their targets that they can find on social media platforms. When seeking purchases online, you can request to see the property in person before submitting payment. When paying people, avoid using cash when you can.
Having a digital trail can help. And although scammers can use digital apps as part of their schemes, the apps themselves are not inherently fraudulent. Using discretion and the aforementioned tactics when sending money via any method can help prevent falling victim to fraud. Additionally, an interesting educational tool is the Better Business Bureau's Scam Risk Calculator.
It offers targeted scam prevention education based on basic personal information. The calculator is linked in the episode notes. Another preventative measure is to report suspected scammers. If you were scammed or think you saw a scam, report it to the FTC at reportfraud.com. You can also report fraud to your state's Department of Consumer Affairs by searching online for their respective website.
If your personal information has been compromised, the IRS Identity Protection Specialized Unit can be contacted to flag your tax files to ensure that your information is not used to falsify tax refunds. In the event that your identity has been stolen, the Identity Theft Resource Center is a national nonprofit organization.
The ITRC website offers tools that help victims through the recovery process and provides links to resources. In addition to the website, you can call ITRC at 1-888-400-5530. The Financial Industry Regulatory Authority offers resources on their website for those working to combat financial fraud, and they also offer victim resources and training for first responders.
Cybercrime Support Network is a non-profit collaboration created to combat cybercrime that is working towards prevention and also offers resources for victims. For more information about the nonprofit organizations and websites mentioned, please visit the episode notes.
For a more comprehensive list of free and confidential organizations that are working to help victims, please visit somethingwaswrong.com slash resources. Many of the amazing groups listed on our website are only able to exist because of the community's help and support.
If you would like to find out more information about volunteer opportunities, please feel free to visit the resource page and reach out directly to the organization of your choice. I'm Tiffany Reese. This episode was written in collaboration with our two associate producers, Amy B. Chesler and Lily Rowe. Thank you so much for listening and learning with us.
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