Americans are being targeted by fraud and scams more than ever before. According to the Federal Trade Commission, consumers reported $12.5 billion in losses to fraud in 2024, an increase of 25% from 2023.

With fraud becoming increasingly sophisticated and hard to catch, it’s essential to educate yourself about what to watch for, and what to do if you think you’ve been affected.

What To Do if You’ve Been Scammed

If you suspect you’re a victim of fraud, there are several important steps you should take immediately. First, notify your bank or financial institution to inform them of the fraud and consider closing the compromised account.

Then, you should report the fraud at reportfraud.ftc.gov, and with your local law enforcement. Be sure to keep detailed records throughout the process.

Types of Fraud to Know

Romance Scams

Also known as “sweetheart scams,” romance scams are characterized by criminals creating fake online identities to gain someone’s trust and manipulate or steal from them. Common examples include: 

• Catfishing: Criminals create fake profiles on dating apps or social media, sometimes using stolen or Photoshopped images.
• Long-distance/military romance: Scammers will claim to be working or traveling overseas, such as in the military or on an oil rig, making it difficult to meet in person. They will make promises of a future together, and ask for money for emergencies, travel expenses, or financial difficulties.
• “Pig Butchering:” This type of fraud involves the criminal building an emotional connection with their target, and then manipulating them into investing in fraudulent schemes with promises of high returns. After a significant amount has been invested, the fraudster will steal the money and disappear.
   

Indicators of romance scams

• Rapid declarations of love
• An avoidance of in-person meetings or video calls
• Frequent stories of emergencies or financial hardships requiring money
• Promotions of investment opportunities, particularly cryptocurrency
• Pressure to move conversations to other messaging apps
• Attempts to isolate the victim from friends and family
   

Imposter Scams

Another common scam involves fraudsters impersonating trusted individuals or institutions in order to manipulate their target into giving them money or sensitive personal information. Criminals often impersonate: 

• Government agencies: Fraudsters will pretend to be with agencies such as the IRS and threaten arrest or legal action unless alleged debts are paid immediately.
• Law enforcement: Posing as law enforcement, criminals will attempt to intimidate targets into sending immediate payment in the form of gift cards or cryptocurrency to avoid arrest for a supposed warrant.
• Tech support: Scammers will claim to be from well-known companies, such as Microsoft or McAfee, and offer to “fix” a non-existent computer problem, demanding remote access and payment.
• Investors: Fraudsters often pretend to be investment professionals promoting fraudulent investment opportunities with promises of high returns.
• Reputable companies or organizations: Fraudsters will use deceptive emails or text messages designed to trick you into revealing passwords, secure access codes for online banking, bank account details, or Social Security numbers.
   

Tips to protect against imposter scams:

• Be skeptical. If an offer seems too good to be true, it probably is.
• Verify contact information, and independently verify the legitimacy of any unexpected call, email or text, especially any message requesting personal or financial information.
• Never click on links or download attachments from unfamiliar sources.
• Be wary of requests for payment using unusual methods like wire transfers, cryptocurrency, gift cards, or prepaid debit cards.
• Never give out your online banking secure access code to anyone. Your bank will never ask for this information.
   

Deposit Fraud

Deposit fraud occurs when criminals trick someone into depositing fraudulent checks and then sending a portion of the funds back before the fraud is discovered. When the deposited check is identified as fraudulent, the victim, not the bank, is left responsible for the losses. Examples include: 

• Counterfeit checks: Fraudsters use checks that appear legitimate, and often use real bank information. They trick their victims into depositing the checks into their accounts and sending some of the funds back before the bank realizes the check is fraudulent.
• Mobile deposit: Pretending to be potential employers, loan providers, or buyers, fraudsters will send counterfeit checks for deposit via a victim's mobile banking app, then instruct the victim to return a portion of the funds before the check bounces.
• Overpayments: This type of fraud typically targets small businesses, freelancers, and online sellers, and involves sending a check for more than an agreed-upon amount and requesting a refund of the excess via an untraceable payment method, such as a wire transfer or gift card.
• Lottery and sweepstakes: Targets are notified that they’ve won a lottery or sweepstakes, and then receive a check for a large sum. They’re told they must pay taxes or fees upfront, which is covered by the fraudulent check, before receiving the full amount.
• Fake job or mystery shopper: Fraudsters send an offer of employment to their target that involves processing payments or acting as a mystery shopper. The target is then asked to deposit a fraudulent check for "start-up costs" or "supplies" and send a portion back to the scammer.
   

Tips to protect against deposit fraud: 

• Be wary of unexpected checks or deposits. If someone you don’t know sends you a check or makes a deposit into your account, be cautious.
• Never deposit a check or money order on behalf of someone else, and never agree to deposit checks or funds for strangers, even if they offer you a portion of the funds.
• Be skeptical of requests to send money back if someone asks you to deposit a check and then return a portion of the funds, especially if the request involves gift cards.
   

We’re Here to Help

Staying informed is one of the most effective tools to fight against fraud. By exercising caution and staying vigilant for warning signs, you can take important steps toward protecting yourself and your family. Remember to never give out your personal information, and trust your instincts if something feels off. We’re always here to help – visit our fraud and scams page for more resources or contact us for assistance.