OIT often shares information about phishing, but many frauds and scams have become sophisticated, costing Americans billions of dollars annually. Understanding the most prevalent schemes and learning how to protect yourself is essential for financial and personal security.
Americans reported losing 12.5 billion dollars in 2024, 25% more than 2023:
https://www.ftc.gov/news-events/news/press-releases/2025/03/new-ftc-data-show-big-jump-reported-losses-fraud-125-billion-2024
The Most Common Types of Fraud
Impostor Scams
The most reported type of fraud involves criminals pretending to be someone you trust. Scammers pose as government officials from the IRS, Social Security Administration, law enforcement, or Medicare. They might claim you owe taxes, your benefits are suspended, or your accounts are compromised. Others impersonate tech support from well-known companies, utility providers threatening service disconnection, or even family members claiming to be in emergency situations.
Online Shopping Fraud
Fraudulent websites and fake online stores have proliferated. Scammers create professional-looking websites offering popular items at steep discounts, collect payment and personal information, then disappear without delivering products. Non-delivery scams and counterfeit goods have become particularly common on social media marketplaces and through targeted advertisements.
Romance and Online Dating Scams
Criminals create fake profiles on dating sites and social media, building emotional relationships with victims over weeks or months. Once trust is established, they request money for emergencies, travel expenses to meet in person, or investment opportunities. These scams are particularly devastating as they exploit both emotional and financial vulnerabilities.
Investment and Cryptocurrency Fraud
Fraudsters promise guaranteed high returns with little or no risk through pyramid schemes, Ponzi schemes, or fake cryptocurrency opportunities. They often use high-pressure tactics, claiming limited-time offers or exclusive access to special investments. Cryptocurrency scams have exploded in recent years, with criminals exploiting the complexity and novelty of digital currencies.
Identity Theft
Criminals steal personal information or buy it on the dark web to open credit accounts, file fraudulent tax returns, apply for school and financial aid, obtain medical services, or commit other crimes in victims' names. Data breaches, phishing emails, mail theft, and skimming devices on ATMs or gas pumps are common methods used to gather this information. Identity theft can devastate credit scores and take years to fully resolve.
Employment Scams
Fake job postings promise high pay for minimal work, often involving reshipping packages, processing payments, or working from home. Victims may unknowingly participate in money laundering or receive fraudulent checks to deposit, ultimately being held responsible when the fraud is discovered.
Strategies to Protect Yourself from Fraud
Verify Before You Trust
Never provide personal information, payment, or access to accounts based solely on an unsolicited call, email, or text. Government agencies like the IRS, Social Security Administration, and law enforcement will never demand immediate payment or threaten arrest over the phone. When someone claims to be from a company or organization, hang up and call back using a number you find independently, not one provided by the caller.
Slow Down and Think
Scammers create urgency to prevent you from thinking clearly. Take time to verify any unexpected request for money or information. Talk to someone you trust before making financial decisions or sending money, especially for emergency situations involving family members. Legitimate organizations will not pressure you to act immediately.
Know the Red Flags
Be alert for common warning signs including requests for payment via gift cards, wire transfers, or cryptocurrency; claims that you've won a prize but must pay fees to collect it; romantic interests you've never met in person asking for money; job offers requiring you to pay upfront fees or deposit checks; and unsolicited offers to help recover money lost to previous scams. Cryptocurrency ATMs are frequently used by criminals.
https://www.aarp.org/pri/topics/work-finances-retirement/fraud-consumer-protection/cryptocurrency-fraud/
Special Considerations for Family and Older Adults
While a smaller percentage of older people report being victims of scams than younger people, they tend to lose far more money to these crimes with a median amount of more than $800 for victims in their 70s and $1,450 for those in their 80s. Family members should maintain open communication about financial matters and watch for sudden changes in financial situations or unusual account activity. Tell your family about these risks and set up a “code word” to use with close family to be able to verify your identity – this is especially important if criminals can obtain video or audio of you to create an AI persona to trick friends and family.
See the OIT Prevention and Recovery guide for additional tips!