Scam Alert: How Smarter Crooks Are Tricking You

Recent Federal Trade Commission data indicates that U.S. consumers lost over $10 billion to scams in 2023 — setting a new record for the highest amount documented. Additionally, fraudsters continue to evolve their tactics. switching their tactics and using AI to make their schemes more convincing , it will become increasingly challenging for consumers to spot red flags .

"Scams differ in size and method, yet they all lead to the victim being involved in an illegal activity," he stated. Alexander Hall , a previous scam artist and trust and safety specialist at Sift. "Generally, these operations are employed to harvest value in four ways: personal identification details, account data, payment info, and approved transactions."

As technology progresses, so too does the tactics scammers use to exploit unsuspecting victims Here are some of the top financial scams you should be aware of.

Most common financial frauds

AI-driven impersonation AI-powered impersonation scams involve fraudsters utilizing artificial intelligence to generate convincingly real counterfeit audio or video communications aimed at mimicking reliable people or entities.

"These deceptive practices using deepfakes can realistically imitate voices and looks, tricking victims into sending funds or sharing confidential data," stated Pete Nicoletti , Check Point’s global chief information security officer for the Americas. "Moreover, the complexity introduced by AI makes these scams harder to spot."

Phishing emails and messages A phishing scam occurs when criminals send emails or messages that seem to come from trustworthy entities such as banks or well-known firms, prompting victims to click on harmful links or share private data. As stated by Nicoletti, these scams frequently instill a feeling of urgency to compel people into acting swiftly without checking whether the request is genuine.

Investment and cryptocurrency scams These cons are becoming more frequent, as swindlers exploit individuals seeking fast and effortless earnings. Based on the 2023 Cryptocurrency Fraud Report from the Internet Crime Complaint Center, Losses due to cryptocurrency-related investment scams reported to the complaint center increased from $2.57 billion in 2022 to $3.96 billion in 2023.

In such scams, con artists typically guarantee substantial profits from investments, especially within burgeoning sectors like cryptocurrency. As stated by Nicoletti, "These criminals might employ bogus websites or pose as financial experts to earn confidence." After luring people into investing, the scammers vanish along with the money, resulting in considerable financial setbacks for those who were duped.

Tech support scams . Tech support scams happen when fraudsters pretend to be technical support representatives from well-known companies, claiming that your device is compromised. “They’ll persuade you to grant remote access to your computer or to pay for unnecessary software or services, which could lead to serious financial loss and potential identity theft,” Nicoletti said.

Romance scams Romance scams have emerged as the archetypal deception, where a criminal lures their intended victim into forming an online connection through various means such as phone conversations, video chats, and texts," Hall explained. "After gaining their trust, the fraudster pretends to require financial assistance and pressures the person to transfer money.

As stated in the FTC Consumer Sentinel Data Book, total losses from romance scams amounted to $1.14 billion in 2023, with each victim losing an average of $2,000—the highest loss amount among all types of impersonation frauds.

If you're a frequent user of online dating platforms, be particularly cautious about such deceptive practices.

Indicators to be aware of

Jacob Kalvo A cybersecurity specialist and the founder/CEO of Live Proxie states that several red flags may indicate you're encountering a financial scam. Should a message seem hasty, contain minor discrepancies, or originate from an dubious-looking email address, it would be wise to exercise extra care.

If it's a deepfake scam, look for small discrepancies such as poor synchronization between lips and speech, unusual hesitations during talking, and odd facial expressions," he explained. "Examining each frame of the video carefully will help spot these issues." He also noted that although AIs generate highly coherent phishing messages, many still contain slight variations in style, peculiar URLs, or files requiring urgent downloading.

How to protect yourself

The simplest method to reduce vulnerability to online financial scams is to pause before clicking. As Nicoletti advised, "Should you receive an email or text suggesting an emergency concerning your bank account, a parcel shipment, a contest win, or a subscribed service, avoid pressing any links." Instead, he recommends accessing the legitimate site directly by entering its URL manually into your web browser.

Additionally, ensure you're taking tangible actions to safeguard your accounts. Begin by generating robust and difficult-to-decipher passwords for each website. While remembering numerous passwords can be cumbersome, recycling them across different sites leaves you vulnerable. For convenience, consider following Nicoletti's advice: install a password manager app on your device to keep all of your login details safe.

To enhance security, consider enabling two-factor authentication on critical accounts. As advised by Nicoletti, ensure your device can get texts or emails when passwords are updated.

If you're prompted to establish security questions during your online account setup, avoid providing straightforward responses. Rather, as Nicoletti suggests, opt for non-related answers to increase the difficulty of guessing them. As an illustration, if the query posed is “Where were you born?” choose an irrelevant reply such as “blue.” This way, identity thieves would find it more challenging to discern the correct answer because it wouldn’t logically fit.

Methods to enhance your cybersecurity online

Nicoletti additionally suggests implementing these measures to bolster your cybersecurity:

• Configure notifications on your accounts to alert you about modifications.
• Go to HaveIBeenPwned.com to check if your email or passwords were compromised in a data leak.
• Install antivirus software such as ZoneAlarm and regularly scan your devices.
• Utilize a virtual private network (VPN) during web surfing to maintain the confidentiality of your connection.
• Modify the initial password on your residential router and ensure that your Wi-Fi employs a robust password.
• Do not share confidential data such as Social Security numbers or bank account details via email, text messages, or social media communications.
• Utilize fingerprints, PINs, or facial recognition on your smartphones.
• Utilize incognito mode for navigating websites with sensitive information.
• Activate pop-up blockers to stop harmful advertisements from showing up.
• Steer clear of saving passwords directly within your browser.

Becoming a target of financial fraud can be incredibly distressing as it can unravel years of your diligent efforts and savings in mere moments. Therefore, if you haven't done so yet, allocate some time to follow the guidelines mentioned earlier to protect your monetary assets.

And keep this in mind: If it seems too good to be true, it likely is.