Fraud Awareness Month: 3 Leading Fraud Scams in 2024
October 1, 2024
Financial fraud is widespread and only getting more sophisticated, and with more financial transactions happening online, the risk is only growing. Since it is Fraud Awareness Month let’s look at three of the most common types of fraud and examples, to help you stay vigilant and protect your hard-earned money.
1. Credential Stuffing
This is when fraudsters use stolen or leaked information that included emails, passwords, and other personal information to canvas websites and services on a large scale to see if the obtained credentials grant them access. This is how they might get access to your banking, shopping accounts with saved payment methods, and other sites that can impact you financially. To minimize your risk it helps to diversify your passwords across websites and change them regularly or if you are worried about a breach in security. You should also set up two-factor authentication when possible to add an extra layer of security and alert you to anyone trying to access your accounts.
2. Account Takeover
This is often the result of a credential stuffing or phishing campaign that allowed a fraudster to gain access to your account. This could affect anything from banking to loyalty points but most often results in a financial loss. In many cases, the account owners are locked out of their accounts with passwords and other log-in methods blocked, furthering the amount of time the criminals have to inflict financial harm. If this occurs, you need to take immediate action to regain and then restrict access to your accounts. Also strongly consider taking additional measures to protect yourself like freezing your credit.
3. Imposter Scams
Imposter scams involve fraudsters pretending to be someone trustworthy—like a government official, tech support agent, or family member in distress. The scammer typically demands money or personal information, using high-pressure tactics to create urgency. New artificial intelligence technology can allow the caller to sound like a family member or call from a number you recognize. These scams often target the elderly but can affect anyone. If you feel like something is not right, you should hang up and call the official listed phone number for the identified party or if a family member asks a personal question to ensure you are in-fact talking to who they say they are. The Federal Trade Commission (FTC) 1 reports that imposter scams led to $2.6 billion in losses in 2022, making them the most costly type of fraud that year.
Fraud schemes evolve as quickly as the technology we use, making it essential to stay aware of the latest trends. Understanding these common scams and following best practices can help you avoid becoming a victim. During Fraud Awareness Month, take time to share this knowledge with others—awareness is the first step toward prevention.
If you’ve been targeted by any of these scams, report the incident to the appropriate authorities, such as the FTC or your local law enforcement agency. You can also work with Affinity’s credit partners to help repair any credit impact you may have. Visit our Fraud Prevention Hub 2 for more details!
This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person's circumstances differ and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and legal counsel to discuss your particular needs before making any financial or other commitments regarding the matters related to your condition.
1 Retrieved from: https://www.ftc.gov/business-guidance/blog/2023/02/ftc-crunches-2022-numbers-see-where-scammers-continue-crunch-consumers
2 Retrieved from: https://www.affinityfcu.com/fraud-prevention-hub/