Consumers reported losing $10 billion to scams and fraud in 2023, up from $9 billion the year before, according to newly released numbers from the Federal Trade Commission (FTC). The rising cost of these crimes is staggering, considering that in 2020 Americans lost only $3.5 billion to fraud, including identity theft.
Scammers have become increasingly sophisticated, employing cunning tactics to exploit vulnerabilities and steal hard-earned money. Fortunately, by adopting a proactive approach, you can significantly reduce your risk of becoming a victim.
The first line of defense lies in information protection. Be wary of unsolicited contacts, whether by phone, email, or text. Legitimate institutions rarely pressure you for immediate action or personal details. Scammers often create a sense of urgency, claiming your account is compromised or a once-in-a-lifetime opportunity awaits. If unsure, hang up or close the message, and contact the organization directly through a verified phone number or website (not the one provided in the suspicious communication).
Furthermore, exercise caution when sharing your personal information on-line. Only provide sensitive details on secure websites with a valid SSL certificate (indicated by a lock symbol and “https” in the address bar). Strong, unique passwords for each on-line account and enabling multi-factor authentication add crucial layers of security. Consider a password manager to generate and store complex passwords securely.
Financial vigilance is paramount. Regularly monitor your bank statements and credit reports for unauthorized transactions. Discrepancies, no matter how small, could be a red flag. Many financial institutions offer account alert features that notify you of transactions exceeding a certain amount or occurring in unusual locations.
Staying informed is crucial. Familiarize yourself with common scams in circulation. Government agencies like the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) provide up-to-date information and resources to educate consumers:
https://www.ftc.gov/ & https://www.consumerfinance.gov/.
By adopting a combination of these strategies, you can build a robust defense against financial scams. Remember, a moment of skepticism can save you a lifetime of financial hardship. If you suspect fraudulent activity, report it immediately to your financial institution and the relevant authorities. Don’t be embarrassed; reporting scams helps track perpetrators and protects others from falling victim.
written with the aid of AI