Speakers<\/b><\/b><\/h3>\n![\"\"](\"https:\/\/siliconeer.com\/current\/wp-content\/uploads\/2024\/09\/09-20-24-Imposter-Scams-speakers.jpg\" "\\"\\"")
<\/h3>\n\n- Kati Daffan<\/b>, Assistant Director, Division of Marketing Practices, Federal Trade Commission, Washington, District of Columbia<\/li>\n
- Emma Fletcher<\/b>, Senior Data Researcher, Federal Trade Commission, Washington DC-Baltimore Area<\/li>\n
- Testimonials<\/b><\/li>\n<\/ul>\n
\nIn 2023 alone, the FTC received 2.6 million scam reports. The first half of 2024 saw 360,000 impersonation scam reports, amounting to $1.3 billion in losses, with a median loss of $800 per victim. Yet, despite these staggering numbers, it’s estimated that less than 5% of scam victims ever report their experiences to the authorities.<\/p>\n
\u201cThis is just the tip of the iceberg,\u201d said Emma Fletcher. \u201cBehind those numbers are people who\u2019ve lost tens and hundreds of thousands of dollars. We\u2019re really concerned about the volume of reports we\u2019re getting on scams that take it all. People have emptied their bank accounts, even their retirement accounts.\u201d<\/p>\n
The rise in losses from business and government impersonation scams has been steep. In 2020, losses to government impersonators totaled $175 million, but by 2023, that figure had skyrocketed to $618 million. Business impersonation scams followed a similar trajectory, with losses jumping from $195 million in 2020 to $751 million in 2023.<\/p>\n
Evolving Scam Tactics<\/b><\/h3>\n
The surge in reports is linked to increasingly deceptive tactics that scammers employ. These fraudsters often request payment through methods like Zelle, bank transfers, or even Bitcoin ATMs. The latter are particularly concerning as scammers have begun calling them \u201cfederal safety lockers,\u201d a ploy to add legitimacy to their schemes.<\/p>\n
\u201cWith the endless daily time-sensitive messages, emails, deliveries, due dates and service invoices we already get, especially in the media, there are so many you have to resist and double-check nowadays,\u201d said Elena Kuznetsova.<\/p>\n
Financial institutions have come under scrutiny in recent months regarding their role in fraud prevention, especially concerning Zelle transfers. Congressional hearings have discussed the obligations of banks in addressing fraudulent transactions. The FTC encourages scam victims to report the incidents both to their banks and to the Consumer Financial Protection Bureau (CFPB) if they feel their cases were mishandled.<\/p>\n
The FTC has implemented a new Impersonation Rule, which took effect in April 2024, specifically targeting fraudsters who impersonate government or business entities. This rule gives the FTC the power to file lawsuits seeking to recover funds for victims and impose civil penalties on scammers.<\/p>\n
Kati Daffan shared details about one of the agency\u2019s first cases under this new rule. \u201cSomebody pretending to be affiliated with the U.S. Department of Education would tell people: \u2018This is a time sensitive notice, and you can get tax-free loan forgiveness,\u2019 to entice consumers to call them,\u201d said Daffan. \u201cThen the telemarketers, claiming to be affiliated with the government, would convince people to sign up for a debt relief program and collect hundreds of dollars in illegal upfront fees,\u201d<\/p>\n
Warning Signs of Scams<\/h3>\n
Scammers typically create a sense of urgency and pressure their victims to act quickly. They may urge victims to lie to bank employees, threaten them with arrest or deportation, and instruct them not to hang up before money is transferred. Another red flag is when scammers tell victims their accounts are at risk and escalate the situation by connecting them to a supposed government agency.<\/p>\n
A new trend in impersonation scams involves victims believing they are protecting their money from theft. This false sense of security leads people to empty their bank accounts and transfer the funds to scammers, thinking they are safeguarding their savings. \u201cBut if you believe you\u2019re protecting your money, you\u2019re more likely to empty your account, and these scammers will position themselves as someone informing you of this problem and helping you resolve it,\u201d Fletcher continued. \u201cThey\u2019re not necessarily posing as the aggressor anymore.\u201d<\/p>\n
Fletcher added that there are widespread misconceptions about the types of people who fall victim to these new tactics. \u201cThey\u2019re not, say, less intelligent or greedy.\u201d she said. \u201cIt\u2019s really important to put those ideas to rest, because they\u2019re barriers to people being receptive to messages about how to avoid scams \u2026 It\u2019s people of all ages, people you know in your community.\u201d<\/p>\n
Who\u2019s at Risk?<\/b><\/h3>\n
Research from the FTC found that adults between the ages of 18 and 59 are 34% more likely to report losing money to fraud compared to older adults, with a median loss of $500. However, older individuals tend to report higher median losses. For those in their 70s, the median loss is $800, while individuals 80 and over report a median loss of $1,500.<\/p>\n
Even experienced professionals can fall victim to these scams. \u201cI\u2019m always telling my audience: please be aware. Don\u2019t do this. I\u2019m 69 with 43 years of experience in journalism, and I fell in their hands completely,\u201d said Celina Rodr\u00edguez, a journalist who fell for a Bank of America impersonation scheme two years ago.\u00a0<\/span><\/p>\n\u201cThey said I bought an iPhone, and was it really me? It was so embarrassing having to explain \u2018No,\u2019\u201d she said. \u201cI was in a rush, I had to do a radio program, and I was panicking. I let them into my computer and sent money to them \u2026 Fortunately, Bank of America helped me shut my computer down, had IT come turn it on in a safe way and I changed my passwords.\u201d<\/p>\n
Rodr\u00edguez emphasized how convincing these scammers can be. \u201cWe are human beings and any of us can become psychological targets\u201d she said.<\/p>\n
Protect Yourself<\/b><\/h3>\n
To protect against impersonation scams, experts recommend slowing down and verifying any suspicious requests. Be wary of unsolicited messages, emails, or calls, especially those asking for immediate action or payment through unconventional methods like cryptocurrency or wire transfers. If something feels off, take a moment to double-check with trusted sources.<\/p>\n
Those who have experienced fraud or suspect they\u2019ve been targeted can report the scam and get guidance on next steps by visiting the FTC\u2019s fraud-reporting website at reportfraud.ftc.gov<\/a>.<\/p>\n <\/p>\n
Image provided by EMS<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Imposter scams are on the rise, with new, more sophisticated tactics leading to alarming increases in reported cases. The Federal Trade Commission (FTC) receives millions of reports annually, and the most common by far are imposter scams. These scams involve criminals impersonating trusted entities such as businesses or government agencies to deceive people into handing…<\/p>\n
<\/h3>\n- \n
- Kati Daffan<\/b>, Assistant Director, Division of Marketing Practices, Federal Trade Commission, Washington, District of Columbia<\/li>\n
- Emma Fletcher<\/b>, Senior Data Researcher, Federal Trade Commission, Washington DC-Baltimore Area<\/li>\n
- Testimonials<\/b><\/li>\n<\/ul>\n
\nIn 2023 alone, the FTC received 2.6 million scam reports. The first half of 2024 saw 360,000 impersonation scam reports, amounting to $1.3 billion in losses, with a median loss of $800 per victim. Yet, despite these staggering numbers, it’s estimated that less than 5% of scam victims ever report their experiences to the authorities.<\/p>\n
\u201cThis is just the tip of the iceberg,\u201d said Emma Fletcher. \u201cBehind those numbers are people who\u2019ve lost tens and hundreds of thousands of dollars. We\u2019re really concerned about the volume of reports we\u2019re getting on scams that take it all. People have emptied their bank accounts, even their retirement accounts.\u201d<\/p>\n
The rise in losses from business and government impersonation scams has been steep. In 2020, losses to government impersonators totaled $175 million, but by 2023, that figure had skyrocketed to $618 million. Business impersonation scams followed a similar trajectory, with losses jumping from $195 million in 2020 to $751 million in 2023.<\/p>\n
Evolving Scam Tactics<\/b><\/h3>\n
The surge in reports is linked to increasingly deceptive tactics that scammers employ. These fraudsters often request payment through methods like Zelle, bank transfers, or even Bitcoin ATMs. The latter are particularly concerning as scammers have begun calling them \u201cfederal safety lockers,\u201d a ploy to add legitimacy to their schemes.<\/p>\n
\u201cWith the endless daily time-sensitive messages, emails, deliveries, due dates and service invoices we already get, especially in the media, there are so many you have to resist and double-check nowadays,\u201d said Elena Kuznetsova.<\/p>\n
Financial institutions have come under scrutiny in recent months regarding their role in fraud prevention, especially concerning Zelle transfers. Congressional hearings have discussed the obligations of banks in addressing fraudulent transactions. The FTC encourages scam victims to report the incidents both to their banks and to the Consumer Financial Protection Bureau (CFPB) if they feel their cases were mishandled.<\/p>\n
The FTC has implemented a new Impersonation Rule, which took effect in April 2024, specifically targeting fraudsters who impersonate government or business entities. This rule gives the FTC the power to file lawsuits seeking to recover funds for victims and impose civil penalties on scammers.<\/p>\n
Kati Daffan shared details about one of the agency\u2019s first cases under this new rule. \u201cSomebody pretending to be affiliated with the U.S. Department of Education would tell people: \u2018This is a time sensitive notice, and you can get tax-free loan forgiveness,\u2019 to entice consumers to call them,\u201d said Daffan. \u201cThen the telemarketers, claiming to be affiliated with the government, would convince people to sign up for a debt relief program and collect hundreds of dollars in illegal upfront fees,\u201d<\/p>\n
Warning Signs of Scams<\/h3>\n
Scammers typically create a sense of urgency and pressure their victims to act quickly. They may urge victims to lie to bank employees, threaten them with arrest or deportation, and instruct them not to hang up before money is transferred. Another red flag is when scammers tell victims their accounts are at risk and escalate the situation by connecting them to a supposed government agency.<\/p>\n
A new trend in impersonation scams involves victims believing they are protecting their money from theft. This false sense of security leads people to empty their bank accounts and transfer the funds to scammers, thinking they are safeguarding their savings. \u201cBut if you believe you\u2019re protecting your money, you\u2019re more likely to empty your account, and these scammers will position themselves as someone informing you of this problem and helping you resolve it,\u201d Fletcher continued. \u201cThey\u2019re not necessarily posing as the aggressor anymore.\u201d<\/p>\n
Fletcher added that there are widespread misconceptions about the types of people who fall victim to these new tactics. \u201cThey\u2019re not, say, less intelligent or greedy.\u201d she said. \u201cIt\u2019s really important to put those ideas to rest, because they\u2019re barriers to people being receptive to messages about how to avoid scams \u2026 It\u2019s people of all ages, people you know in your community.\u201d<\/p>\n
Who\u2019s at Risk?<\/b><\/h3>\n
Research from the FTC found that adults between the ages of 18 and 59 are 34% more likely to report losing money to fraud compared to older adults, with a median loss of $500. However, older individuals tend to report higher median losses. For those in their 70s, the median loss is $800, while individuals 80 and over report a median loss of $1,500.<\/p>\n
Even experienced professionals can fall victim to these scams. \u201cI\u2019m always telling my audience: please be aware. Don\u2019t do this. I\u2019m 69 with 43 years of experience in journalism, and I fell in their hands completely,\u201d said Celina Rodr\u00edguez, a journalist who fell for a Bank of America impersonation scheme two years ago.\u00a0<\/span><\/p>\n
\u201cThey said I bought an iPhone, and was it really me? It was so embarrassing having to explain \u2018No,\u2019\u201d she said. \u201cI was in a rush, I had to do a radio program, and I was panicking. I let them into my computer and sent money to them \u2026 Fortunately, Bank of America helped me shut my computer down, had IT come turn it on in a safe way and I changed my passwords.\u201d<\/p>\n
Rodr\u00edguez emphasized how convincing these scammers can be. \u201cWe are human beings and any of us can become psychological targets\u201d she said.<\/p>\n
Protect Yourself<\/b><\/h3>\n
To protect against impersonation scams, experts recommend slowing down and verifying any suspicious requests. Be wary of unsolicited messages, emails, or calls, especially those asking for immediate action or payment through unconventional methods like cryptocurrency or wire transfers. If something feels off, take a moment to double-check with trusted sources.<\/p>\n
Those who have experienced fraud or suspect they\u2019ve been targeted can report the scam and get guidance on next steps by visiting the FTC\u2019s fraud-reporting website at reportfraud.ftc.gov<\/a>.<\/p>\n
<\/p>\n
Image provided by EMS<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
Imposter scams are on the rise, with new, more sophisticated tactics leading to alarming increases in reported cases. The Federal Trade Commission (FTC) receives millions of reports annually, and the most common by far are imposter scams. These scams involve criminals impersonating trusted entities such as businesses or government agencies to deceive people into handing…<\/p>\n
- Emma Fletcher<\/b>, Senior Data Researcher, Federal Trade Commission, Washington DC-Baltimore Area<\/li>\n