Scam artists are tricking millions of us every year, and the cumulative financial damage is significant. According to the Federal Trade Commission, it totaled $5.8 billion in 2021 — 70% increase over 2020.
Scams morph continuously as bad actors come up with new ways of stealing money. The war in Ukraine, for example, has resulted in the birth of new charity scams that claim to provide humanitarian aid in Eastern Europe but are nothing but shams.
Adults of all ages are victims of fraud, but older individuals tend to lose more money than younger people.
Eighty-year-olds, for example, lose an average $1,500 per incident versus $500 for folks in their twenties and thirties.
• The Government Impersonator Scam
Beware of phone calls, text messages, and emails that state you have an outstanding tax liability and will be arrested or your bank account frozen if you don’t pay the IRS immediately.
They may know something about you, such as your name or Social Security number, but they’ll ask for more personal financial information and use it to raid your bank account.
Alternatively, they may ask you to wire money or pay with a gift card.
This communication should raise an immediate red flag.
The IRS will never threaten you or demand payment. Second, you’ll get a formal letter, not a call, text, or email message.
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