According to the Federal Trade Commission, consumers reported losing more than $5.8 billion to fraud in 2021, an increase of more than 70 percent over the previous year.
Marty DeLiema, an assistant research professor in the School of Social Work, studies the risk factors associated with financial fraud, provides expert tips for how to avoid financial fraud, and identifies what to do when you fall victim to scammers.
Q: What are some examples of common financial scams?
Prof. DeLiema: There are so many different types of scams that are trending right now. Like street crime, rates of reported fraud are on the rise. Scams to look out for include business imposter scams, where fraud criminals pretend to be the consumer’s bank, a tech support company or Amazon. The criminals call, email or text to alert the consumer about a “problem” with their account and proceed to request money to help resolve the problem. Romance scams are also on the rise and are responsible for the greatest average losses for consumers. What’s noteworthy is how fraud criminals have shifted their preferred method of payment in the last few years. Mass marketing scammers are demanding payment using gift cards, cryptocurrency and Zelle transfers. These payments are more instantaneous and harder to trace.
Q: What are ways to prevent financial scams?
Prof. DeLiema: Education and awareness are always the best tools in the fight against fraud. Fraud depends on successful…
