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Financial scams are responsible for huge monetary losses by American consumers each year, and they’ve been on the uptick recently. Federal Trade Commission data from 2021 shows the agency received 2.8 billion reports from consumers who reported losing over $5.8 billion to fraud, which is a 70% increase from the previous year.
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To learn about common financial scams and expert tips for avoiding them, GOBankingRates consulted with Laura Harris, Certified Fraud Examiner and research specialist at the Association of Certified Fraud Examiners. Here’s what you need to know.
Advance-Fee Scams
“Advance-fee scams are one of the most common scams,” said Harris. “A fraudster promises something but requires that the fee be paid upfront. Perhaps it is a vacation that someone might have won, but requires a processing fee, or maybe a contractor requires pre-payment for materials. The consumer must give money upfront — in advance — before what they are paying for is to be ‘received.’”
Charity Scams
“Consumers…
