“Hello, we are calling regarding your car warranty.” An Instagram DM convincing you to invest money in crypto. A potential romantic interest asking for money due to a family emergency. A job post lures you to apply and then go through various questionnaires without an interview. Or, the best one yet, a relative calling you in desperate need of money because they are in trouble, except that call is fake, and AI scammer has just outsmarted you.

Scams come in many different forms and shapes. Many are impacted by these scammers, as outlined by a panel of experts from the Federal Trade Commission during a press briefing.

Speakers

(L-r) Maria Mayo, Acting Associate Director for the Division of Consumer Response and Operations in the Bureau of Consumer Protection at the Federal Trade Commission; Rosario Mendez, Attorney, Division of Consumer and Business Education Bureau of Consumer Protection Federal Trade Commission; Cristina Miranda, Consumer Education Specialist, Division of Consumer and Business Education Bureau of Consumer Protection Federal Trade Commission
  • Maria Mayo, Acting Associate Director for the Division of Consumer Response and Operations in the Bureau of Consumer Protection at the Federal Trade Commission
  • Rosario Mendez, Attorney, Division of Consumer and Business Education Bureau of Consumer Protection Federal Trade Commission
  • Cristina Miranda, Consumer Education Specialist, Division of Consumer and Business Education Bureau of Consumer Protection Federal Trade Commission

This briefing came at a very opportune time as a recent article by ArsTechnica highlights a new form of scam where AI-based voice modulation mimics relatives and close friends. Many are getting fake calls from their relatives and/or friends who are apparently in trouble and need money. The twist, the relative or friend never called. Welcome to 2023, where the world feels like a sci-fi movie.

Some staggering statistics presented by Maria Mayo: “First we saw a decrease in the number of fraud reports received compared to 2021. in 2022 we received 2.4 million fraud reports compared to 2.9 fraud reports received the year before so that’s about a 500,000 decrease in the number of fraud reports that we received.” Although the number of fraud reports decreased, the number of dollars lost has hit a record high. “The dollar loss reported was staggering. Consumers reported that they lost more than $8.8 billion to fraudsters, the most ever reported,” says Mayo.

Breaking down the scams, Mayo highlighted that there are a few major types of scams that are being witnessed: business imposter scams, government imposter scams, romance scams, and investment scams, job scams. “Consumers reported losing money to investment scams more than any other type of scam, and the amount lost in 2022 more than doubled what was lost in 2021. Consumers reported losing $3.8 billion in investment scams, most of which were lost to cryptocurrency scams. These scams often started on social media where consumers were enticed to invest in cryptocurrency in an attempt to make money. Consumers invested, and the scammers were so savvy that they often presented websites that actually showed how the consumer’s money had grown. But it was all fake.”

Looking at scams from an ethnic community lens, Rosario Mendez says, “Scammers are targeting ethnic communities and they speak your language. They target ethnic communities in unique ways.” In the briefing, many attendees from different ethnic backgrounds highlight their personal experience of scams based on their background – a romantic interest who is just trying to swindle money, or someone who got a job and provided information to the alleged recruiter. Rosario highlights that the Latino and African American communities become victims of business imposter scams. A lot of these scams have a lot to do with social media.

These scams are wreaking havoc in American society. No matter what ethnic community, age, or socio-economic background, anyone could be a potential target. The FTC experts recommended taking steps and being educated on how to handle the scams. “We know that fraud affects every community and that scammers are running their scams in the languages that people speak at home. And that’s why the FTC now has information in a dozen languages to help people spot and avoid these scams,” says Cristina Miranda. There are a multitude of resources available for consumers to report scams/frauds or get guidance on how to move forward if they have been scammed. Check out the FTC website: https://consumer.ftc.gov.