Fraud Is on the Rise. Here Are 10 Ways to Stay Safe.
The world is full of con artists. And they’re now using AI to create convincing fake websites, emails, texts, audio, and video for their scams.
Fraud losses reported to the Federal Trade Commission (FTC) hit a record $12.5 billion in 2024, up 25 percent from the previous year. The FTC’s Consumer Sentinel Network Data Book 2024 reports that investment scams, romance scams, crypto scams, and imposter scams are driving much of the increase.
Based on nonprofit Consumers’ Checkbook’s decades of consumer reporting and talking with thousands of scam victims, here are 10 strategies for staying safe.
1. Be skeptical.
Question everything: Telemarketing calls, mail solicitations, email offers, unknown websites, social media posts, and all advertisements. Con artists can make their scams look and sound legitimate, using phony claims, bogus testimonials, and forged seals of approval.
2. Don’t click on links in email or text messages.
Thieves will “phish” for your login credentials by sending you an email, text, social media message, or online pop-up that looks like it comes from your financial institution, credit card company, delivery service, or other trusted business. Click on one and you’ll land on a bogus website that looks legit, where you will be asked to log in to your account or provide payment info.
Always access your online accounts by typing the legitimate URL into the browser’s address bar, or by using a browser bookmark or the official app for that company or financial institution.
3. Open and read your postal mail.
Financial institutions and government agencies will send important notices via the U.S. Postal Service. If someone is attempting to drain your retirement account, you’ll likely get a letter about it, as well as email or text-message alerts, if you’ve signed up for those. If your personal information has been compromised in a data breach, you’ll learn about it in a letter mailed to you.
4. Use a credit card for online and mail-order purchases.
A credit card gives you better fraud protection than a debit card. Under the federal Fair Credit Billing Act, if you pay with a credit card and there’s a problem after the sale—you don’t receive the merchandise, get charged for something you didn’t order, the item is defective, or you’re unhappy with the service—you can dispute the charge with the credit card company.
5. Don’t pay via crypto, payment apps, gift cards, or wire transfers.
These types of payments are instant and irreversible and therefore preferred by scammers. Government agencies and legitimate businesses accept credit and debit cards; they don’t insist on payment via gift cards, payment apps, crypto, or wire transfers.
6. Know that government agencies never demand payment via phone, text, or email.
If there’s a problem with your account, Medicare, the IRS, Social Security, or other government agencies will never demand instant payment via phone, text, or email. Only scammers threaten consequences if you don’t pay immediately via methods like gift cards, wire transfer, a payment app, or cryptocurrency. Government agencies don’t accept those payment methods.
7. Guard your personal information.
Armed with your bank account number and login information, a con artist can drain your savings. Phone bandits often pose as bank employees who say they need your Social Security number or PIN to resolve a problem with your account. Or they’ll ask you to provide them with the code you receive from your bank via text or email. Don’t do it!
8. Don’t trust caller ID.
Caller ID can easily be spoofed to display any name and number the caller wants, making you think they’re with your bank or credit card company, the local police department, or a government agency. If the number isn’t familiar, let the call go to voicemail. Scammers will often hang up.
9. Don’t pay to enter a contest or claim a prize.
It’s illegal to require payment or purchase to enter a sweepstakes. That’s why legitimate contests include a “no purchase necessary” option. Don’t give any financial information to claim a prize you supposedly won—especially from a contest you didn’t enter.
10. Take your time.
Anyone can fall victim to a scam. Fraudsters know what buttons to push to get you off balance, exploit your emotions, and scare you into responding quickly without thinking. If you’re told the deal is off if you walk out the door or hang up the phone, do just that. Don’t respond to calls, texts, letters, or emails that require an immediate response. That’s a big red flag.
Before you do anything: Slow down, avoid going into panic mode, and check it out. Talk to a friend or family member, get advice from the AARP Fraud Watch Network helpline at 877-908-3360 (you don’t have to be an AARP member to use this service), or contact your local Better Business Bureau.
About Consumers’ Checkbook
Consumers’ Checkbook is a nonprofit organization with a mission to educate and help consumers make smarter choices. It offers advice, price comparisons, and in select markets, unbiased ratings of local service providers. It is supported by consumers and takes no money from the companies it evaluates. You can learn more about Checkbook and keep up with its latest reports by visiting Checkbook.org/NFCC.
