In 2021, more than 2.8 million consumers reported that they were victims of scams, with total losses for the year adding up to $5.8 billion, according to the Federal Trade Commission. The FTC also noted that fraud losses were up 70% from the previous year.
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With financial scams on the rise, it’s important to recognize common scams and learn how to avoid them. Here’s what you should know about money scams.
Charity Scams
Some scammers will claim to be raising funds for real or fake charities but instead will pocket your donations. These scams can ramp up during the holidays or during times of increased need, such as after a natural disaster.
Debt Scams
Common debt scams include debt collector scams, where a scammer may claim they are collecting on a debt you actually owe or a debt you don’t know you have, and debt settlement or relief scams, where a fraudster will claim they can help you pay off or settle an existing debt.
Imposter Scams
According to the FTC report, imposter scams are the most common type of financial scam. In these situations, a scammer will contact you pretending to be someone else, such as a bank employee or a member of law enforcement or the government.
Business and Job Opportunity Scams
If a business or job opportunity seems too good to be true, it probably is. These types of scams are also among the most common, according…
