According to a February 2024 report from the Federal Trade Commission, Americans reported more than $10 billion in losses to fraud last year, coming from 2.6 million individual claims. The report found that investment scams accounted for nearly half of the losses, but there are many other scams targeting Americans of all ages.
FPPA Members are, in general, a bit more skeptical than the average consumer, but no one is truly immune from fraud. So, let’s take a look at some of the most common scams targeting Americans right now, and a few ways to protect yourself and your loved ones from fraud.
Prevalent Financial Scams in 2024
Here are brief explanations of some of the most common scams currently affecting consumers:
- AI-Powered Scams: Crooks use advanced technology, including artificial intelligence, to create convincing emails or calls pretending
to be someone or a legitimate company. These messages may ask for personal information, making it easier to deceive individuals into sharing sensitive details - Tech Support Scams: Fraudsters pose as tech support representatives and claim that your computer has a virus or security issue. They then ask for remote access to your device or request payment for their services
- Government Imposter Scams: Scammers pretend to be government officials (such as IRS agents or Medicare representatives) and demand immediate payment or personal information
- Investment Scams: Scammers promise high returns on investments, often targeting seniors who are looking to secure their retirement funds
- Check Fraud: Scammers send fake checks to victims, asking them to deposit the funds and wire a portion back. The checks eventually bounce, leaving the victim responsible for the entire amount
Remember to exercise caution when approached by anyone asking for personal information or money. If in doubt, verify the legitimacy of the request before taking any action.
Protect Yourself and Your Family From Fraud
Avoid becoming a victim by taking these steps:
- Stay informed: Educate yourself about common scams and their tactics. Awareness is the first line of defense
- Be skeptical: This probably feels like second nature to many readers. However, remember to always be cautious when receiving unsolicited calls, emails, or messages. Scammers often pretend to be someone trustworthy like a bank representative, government official, or family member. Verify their identity before sharing any personal information
- Create your MAP account: If you don’t already have an active account on FPPA’s Member Account Portal, create one to ensure that bad actors do not gain access to your personal information
- Monitor financial accounts, including MAP: Regularly review your bank and credit card statements for any unauthorized transactions. Report any suspicious activity promptly. This should include checking your beneficiaries, contact details and other account information on FPPA’s Member Account Portal
- Beware of urgency and threats: Scammers often create a sense of urgency or fear to pressure victims into making quick decisions. Take your time and don‘t let anyone rush you
- Consider an identity theft prevention service: These products help individuals secure their digital lives with tools to lock down their devices, safeguard their personally identifiable information, and protect their online activities
- Many good options exist, and FPPA retirees can enroll in Norton LifeLock in the Retiree Insurance Portal
Remember, scammers are constantly evolving their tactics, so staying informed and vigilant is crucial. If you suspect a scam, report it to the Federal Trade Commission or your local authorities.
Ryan Woodhouse is the Content and Publications Manager for the Fire & Police Pension Association of Colorado. When not managing content for FPPA, Ryan can be found fly fishing in the Colorado high country or shouting at the TV during University of Wisconsin football and basketball games.