A Complete Guide To Avoiding Financial Scams
In 2021, more than 2.8 million consumers reported that they were victims of scams, with total losses for the year adding up to $5.8 billion, according to the Federal Trade Commission. The FTC also noted that fraud losses were up 70% from the previous year.
Holiday Spending: Get Top Holiday Shopping and Savings Tips
Explore: GOBankingRates’ Best Credit Cards for 2023
With financial scams on the rise, it’s important to recognize common scams and learn how to avoid them. Here’s what you should know about money scams.
Charity Scams
Some scammers will claim to be raising funds for real or fake charities but instead will pocket your donations. These scams can ramp up during the holidays or during times of increased need, such as after a natural disaster.
Crowdfunding Charity Scams Flourish During Holidays — How To Protect Your Donations
Charity Scams: Check Out These Tips From the FBI Before You Donate
Debt Scams
Common debt scams include debt collector scams, where a scammer may claim they are collecting on a debt you actually owe or a debt you don’t know you have, and debt settlement or relief scams, where a fraudster will claim they can help you pay off or settle an existing debt.
Imposter Scams
According to the FTC report, imposter scams are the most common type of financial scam. In these situations, a scammer will contact you pretending to be someone else, such as a bank employee or a member of law enforcement or the government.
Business and Job Opportunity Scams
If a business or job opportunity seems too good to be true, it probably is. These types of scams are also among the most common, according to the FTC.
Money Transfer and Payment App Scams
PayPal, Zelle, Cash App and Venmo are generally secure ways to transfer money, but they can sometimes be utilized by scammers to fulfill their schemes. Beware of these common payment app scams.
Scams That Target Online Sellers
If you are selling products online, you should be extra vigilant to avoid these common scams.
Scams Targeting the Elderly
The elderly can be especially susceptible targets, so it’s important to be well informed about common scams if you are a senior citizen, and to warn the elderly loved ones in your life about common scams that target this population.
Social Security Scams: How To Handle Calls Claiming There’s a Problem With Your Account
Social Security Scams: 3 Common Requests and How To Report Them
Grandparent Scams: How To Protect Older Adults From Being Exploited During the Holidays
Romance Scams
The rise of internet dating has led to an increase in romance scams, where a potential love interest will ask for money.
More Tips for Avoiding Scams
Here’s a look at some more advice for avoiding financial scams.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: A Complete Guide To Avoiding Financial Scams
