14 Financial Scams That Have Hurt Americans — Have You Been a Victim, Too?
Written by
Chris Adam
Edited by
Susan Kim
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There’s a good chance you or someone you know has fallen victim to a financial scam and lost money as a result.
GOBankingRates surveyed more than 1,100 Americans ages 18 and older from across the country in August 2023 to find out about their experiences with identify theft, financial fraud and financial scams. Nearly 40% of respondents reported having been a victim of at least one of those events.
Based on the survey data, here’s a look at common financial scams and tips for avoiding them.
Phone Scams
About 17% of respondents who said they’d fallen victim to a financial scam reported they’d experienced a phone scam. These kinds of scams include robocalls, texts, false impersonators and bots.
Money Transfer Scams
Nearly 12% of those who were victimized by a financial scam experienced a money transfer or mobile payment services scam. With everyone on their phones these days, it can be easy to be fooled by a text or other message requesting a money transfer, perhaps to help someone who claims to be a friend or to pay for an item purchased from an online marketplace. If in doubt about a money request, even from someone you know, call the person first to make sure it’s legitimate.
Online Shopping Scams
These kinds of scams also can take many forms. To avoid being swindled, shop only on reputable websites, ignore social media ads and steer clear of sellers who pressure you to buy.
Phishing Scams
“Phishing is a type of online scam that targets consumers by sending them an email that appears to be from a well-known source — an internet service provider, a bank or a mortgage company, for example,” according to the Federal Trade Commission. “It asks the consumer to provide personal identifying information. Then a scammer uses the information to open new accounts or invade the consumer’s existing accounts.”
If in doubt about an email you receive, don’t click any links. Navigate directly to the company’s website using your web browser and then send an inquiry through the company’s secure messaging system.
Imposter Scams
Around 7% of financial scam victims experienced an imposter scam. There’s often some overlap between money transfer scams and imposter scams. For example, one common imposter scam involves an individual pretending to be a sheriff informing the victim of a warrant for their arrest, and offering to cancel the warrant in exchange for payment of a “fine.”
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Social Security Scams
While Social Security scams often target older people, you can get caught up in this kind of scam no matter what your age. Around 6.5% of respondents who reported falling victim to a financial scam said they’d experienced a Social Security scam.
Debt Collection Scams
Scammers might contact you to try to collect on a bogus debt. Never pay a bill you’re not sure you owe, especially by phone. Ask the caller to mail you a statement so you can verify the company information and the debt.
Debt Relief Scams
These are very similar to the debt collection scams. They are so common, in fact, the attorney general of Texas warned citizens about unsolicited calls from scammers offering to help eliminate debt for a fee.
Romance Scams
Romance scams tug at your heartstrings in an effort to steal your money. You might encounter these scammers on legitimate dating websites and apps, which is why you should be careful about the information you give out to strangers.
Tax Scams
While you might be on guard against tax scams during the height of tax season, scammers can target you any time of year. The IRS and state tax agencies won’t call you about back taxes — they’ll send you a letter explaining the debt and how to resolve it.
Student Loan Forgiveness Scams
Some unscrupulous individuals have used President Joe Biden’s student loan forgiveness programs to bilk students out of money. These scammers offer bogus opportunities for students and former students to have loans forgiven in exchange for a fee.
Lottery Scams
Watch out for scams involving claims that you won a lottery or other contest but need to send payment in order to collect your prize.
Cryptocurrency Scams
Crypto scams overlap other common types of scams. In some cases, the scammers entice victims to make fraudulent investments. In others, they try to get the victim to transfer over crypto.”They even go as far as entering into fake relationships through dating apps like Tinder,” Forbes reported.
Employment Scams
If an employment opportunity sounds too good to be true and seems too easy to achieve, it might be a scam. Employment scams are quite common as scammers look to get your personal information and money.
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