Fraud and scams are reaching ever-increasing levels in this country, and sophisticated technology like AI and other intelligence tools are used by these savvy fraudsters to make it harder for the average consumer to spot scams.
Fraud and scams cost consumers more than $10 billion in 2023 (FTC)1, which is up 11% compared to the prior year.2
Scams typically center around the creation of a high emotional or anxious state to overshadow reason and logic and justify the need for immediate funds and/or personal information. For example, a parent could receive a call from a teenager who says they’ve been in a crash and needs money now.
Other high emotional situations can include false romances, fabricated investments, fake employment opportunities requiring personal information, tax payment through a phony company, or urgent contact from an imposter pretending to be NWFCU’s Fraud Mitigation Department/Security, law enforcement, or technical support.
Scammers generally insist on specific forms of payment or instructions. This usually entails payment through gift cards, peer-to-peer services, or cryptocurrency because they are harder to trace and frequently unable to be reversed. Scammers especially target cryptocurrencies because they don’t have the same legal protections as credit or debit cards.
Always be alert and suspicious if someone you don’t know asks for payments or personal information. Here are a few tips to protect yourself, your family, and your money from scammers and frauds:
1 FTC 1
2 FTC 2