Sophisticated phone scams are becoming more common and more relentless. The numbers are mind-boggling.
According to the FTC, impostor fraudsters cost US consumers $2.7 billion in 2023, and the figure is rising year after year.
These are merely the listed losses; many people who have been duped are embarrassed and refuse to acknowledge they fell for such a scam. You may believe that you will not be misled, yet many of those who are duped thought this before the incident.
Scammers have refined their strategies to sound trustworthy and legitimate, and AI is just making matters worse. When combined with the strain or situation, it only takes a few moments to fall for it.
The best defence against phone scams is to be prepared to face them, as they are likely to occur at some point. We've compiled a list of some of the most popular phone scams in 2024 and how to prevent them.
AI-powered scams
The most obvious example of fraudsters exploiting new technology to power existing scams is artificial intelligence (AI). For instance, scammers might use AI to:
- Generate more convincing and genuine sounding phishing emails and text messages.
- Create deepfakes of celebrities to lure victims into thinking they're investing in a good company or project.
- Impersonate an employer and ask for private information.
Student loan forgiveness scams
The back-and-forth adjustments in student loan forgiveness create an ideal scenario for scammers. Fraudsters know that individuals want to believe that their student loans will be forgiven, and they will use this need for personal benefit.
For example, scammers may call you or set up fake application sites to steal your Social Security number or bank account information. They may put pressure on their victims by sending bogus urgent messages encouraging them to seek debt relief "before it's too late." Then they will charge you a high application fee. In reality, this is a scam.
Zelle scams
Scammers are using Zelle, a peer-to-peer payment tool, to steal people's money. The fraudster might email, text, or contact you, claiming to work for your bank or credit union's fraud department. They'll claim that a thief intended to steal your money via Zelle and that they need to walk you through "fixing" the issue.
Subsequently, fraudsters may advise you to pay the money to yourself, but the funds will actually go to their account. Starting in mid-2023, Zelle began refunding victims of some frauds. However, you may not always be eligible for reimbursement, so be aware of these financial frauds.
Prevention tips
Avoid clicking on unknown links: Whether the link arrives in your email, a text or a direct message, never click on it unless you're certain the sender has good intentions. If the message says it's from a company or government agency, call the firm using a number that you look up on your own to confirm its legitimacy.
Be skeptical: Scammers can spoof calls and emails to appear to be from a number of sources, including government institutions, charities, banks, and major companies. Do not provide any personal information, usernames, passwords, or one-time codes that others could use to gain access to your accounts or steal your identity.
Don't refund or forward overpayments: Beware whenever a company or person asks you to refund or forward part of a payment. Often, the original payment will be fraudulent and taken back later.
Following simple safety precautions and reviewing the most recent scam alerts might help you stay safe. However, mistakes might occur, especially when you are stressed or overwhelmed.
