NEWS: The FBI on March 22 released its 2021 Internet Crime report, which found that Americans lost more than $6.9 billion ($15 million in New Hampshire) to fraudsters using technology to steal money from people. And those are just the people who reported the crime to the FBI.
WHAT THIS MEANS TO YOU: Most people think they’re too savvy to get taken in by fraud, but scammers’ methods are constantly getting more sophisticated, and if you’ve ever clicked on a link, you are vulnerable.
You may think you’re too smart or savvy to get taken in by a scam. The truth is, though, the majority of people are susceptible to scams and fraud, particularly as we live more of our lives online.
Scammers don’t always advertise themselves with a Nigerian address or outrageous claims that you have millions coming to you. As people have become more dependent on technology to communicate, scammers and fraudsters have gotten way more sophisticated.
The FBI Cyber Crime Center (IC3) tracks more than 30 different types of scams that originate through a computer, device or phone. We’re going to take a look at three that everyday people like us are particularly vulnerable to.
The FBI got reports from 24,966 victims of romance scams in 2021, with losses of $956 million. The actual amount of victims and money list is likely many times higher. IC3 statistics are based on reports directly from victims to the FBI. The FBI says that it’s likely “most losses” of this crime are never reported.
You know why that is – you’re likely chuckling about how gullible people who get taken in by these scams are. Victims, the huge majority of them women, know they’ll be judged. They’re hesitant to put themselves out there. Fraudsters know this, too, which makes it easier for them.
The truth is, anyone can be taken in by a confidence fraud or romance scam, because fraudsters know how to gain a victim’s confidence and manipulate people into becoming victims.
The FBI reports that 63 percent of the victims who reported being scammed were over 40, with half of those being over 60. But that doesn’t mean younger people aren’t victims as well.
In the typical romance scam, the criminal adopts a fake online identity to gain a victim’s confidence, then steals from them.
“The criminals who carry out romance scams are experts at what they do and will seem genuine, caring, and believable. The scammer’s intention is to quickly establish a relationship, endear himself/herself to the victim, gain trust, and eventually ask for money,” the FBI says. [To hear a victim’s story, as well as an FBI agent talk about romance scams, click here].
The scammers may make plans to meet in person, but something always comes up and it doesn’t happen. They often “work overseas” – in the military, construction, the CIA or some other legitimate-sounding enterprise that keeps them on the move and away from home. At some point they’ll have an emergency that requires money from the victim – a medical situation, an issue that’s caused their bank accounts or credit cards to be frozen. They have money, they just can’t get to it. They rely on the relationship they’ve built with the victim to take her money. Victims sometimes keep sending money, too, convinced that things will turn around.
While victims of romance and confidence scams are often criticized as greedy and “getting what they deserve” because the scammer portrayed himself as wealthy, that’s a misconception. These scams rely on victims being honest, compassionate people who want to help someone they trust.
Another version of this is the “grandparent scam,” where the scammer emails or calls the victim, usually someone middle-aged or older, and convinces them they’re a loved one in trouble who needs money wired to them ASAP.
There are two emerging types of romance scams and confidence fraud the FBI is tracking:
Where romance/confidence scams originate: Email, dating apps, online gaming sites and texts are all fertile ground for first contact. The FBI says that there are con artists on most dating and social media apps.
Red flags: If you see any of this when you’re talking to someone online, it can be a red flag for a romance or confidence scam:
How to protect yourself. Scam victims, particularly women, are made to feel that if they ask questions or stand up for themselves, there’s something wrong with them. This is gaslighting and a major tool in the romance scammer’s toolbox. Women are also conditioned to think that controlling and other red flag behavior is “romantic.” Don’t be fooled. (Many of these tips can also protect you from a toxic or abusive relationship).
Phishing, vishing, smishing and pharming are all variations on the same theme – ways for scammers to get access to private information, including email accounts, bank accounts, credit card information and more.
Phishing is an email from what may look like a credible source that asks for information. Vishing is when it’s done by phone or voice over internet protocol (VoiP) systems. Smishing is when it’s by text (officially, SMS systems). Pharming is through a website.
These scams can either lead to another scam, like getting you to make a fraudulent investment or purchase, or they use the information they get to steal from your accounts or steal your identity.
Where phishing/vishing/smishing/pharming originate: Email, text messages, messaging apps, cellphones, VoiP systems, websites.
Red flags: While these scams arrive in different ways, they have things in common:
How to protect yourself: These scams are everywhere and most people are bombarded with them through text and email.
Nonpayment for goods that a victim sent to someone, and non-delivery of goods that a victim paid for was the top scam 2021 reported to the FBI by New Hampshire residents. There were 325 reports, with victims losing $551,255. These are only what was reported to the FBI, so the numbers are likely much higher. A lot of this is from people buying online, or selling online as a business or side gig.
Scams like this often come from what looks like a well-known reputable company. The Better Business Bureau in 2021 received reports of scams from fake businesses that posed as Hulu, Netflix, Verizon and others.
Here’s what some of the messages reported to BBB looked like:
“COVID-19 REFUND. VERIZON COMPANY is giving out $950 to all users of our Verizon service, If yes kindly text your Verizon…”
“Due to the pandemic, Hulu is giving everyone a free 1-year subscription to help you stay at home. Get yours here …https://manchesterinklink.com/its-your-money-no-one-is-immune-to-online-scams-and-fraud/.”
Click on those links and the scammers get your money, or information, but you don’t get the service being offered.
Where nonpayment/non-delivery scams originate: Websites and social media, including sites that look like legitimate businesses, social media marketplaces, sites where people sell their own goods, like eBay, Etsy, Craig’s List and others.
Red flags: You can’t always know in advance if you’re going to be ripped off, but here are some things to look out for:
How to protect yourself:
The common theme running through all of these scams is that there’s a lot of leaping before looking. Take your time and check things out, whether it’s sending your life savings to your new soulmate whose bank accounts have suddenly been frozen and he’s stuck overseas, or it’s clicking on that great deal from Hulu. Don’t let anyone rush you into a decision that will cost you money, or make you feel like you don’t have a right to question them. Follow your instincts. If it feels wrong, walk away. Don’t worry that you’re being rude or hurting someone’s feelings.
Be smart about what you put online. Potential scammers, particularly for romance scams and confidence fraud, are experts at getting personal details they can use to manipulate victims.
If you do get scammed – and plenty of good, smart people do every day – get over your embarrassment and step up. Report it to local law enforcement, even if you’re afraid they’re going to laugh at you. Insist on making a report even if they do laugh at you. Scammers rely on the fact people are too embarrassed and ashamed to report them. Reports create a public picture of what’s going on and can also help keep others from being victims. Law enforcement statistics are how the FBI and other agencies track scams and other crime. Ask for a copy of the police report to make sure it was done and to have for your records.
Report the scam to all of these agencies:
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