Fraud Awareness Week
International Fraud Awareness Week is an important event that aims to raise awareness about fraud and promote fraud prevention. During this week, individuals, organizations, and communities come together to educate themselves and others about different types of fraud, common fraud schemes, and ways to protect themselves from falling victim to fraudulent activities.
Romance Scams
Romance scammers tell all sorts of lies to steal your heart and money, and reports to the Federal Trade Commission (FTC) show those lies are working. In 2022, nearly 70,000 people reported a romance scam, and reported losses hit a staggering $1.3 billion. Reports show romance scammers often use dating apps to target people looking for love. But reports of romance scams that start with unexpected private messages on social media platforms are even more common. In fact, 40% of people who said they lost money to a romance scam last year said the contact started on social media; 19% said it started on a website or app. Many people reported that the scammer then quickly moved the sweet talk to WhatsApp, Google Chat, or Telegram.
These scammers pay close attention to the information you share and don’t miss a beat becoming your perfect match. You like a thing, so that’s their thing, too. You’re looking to settle down. They’re ready, too. But there is one exception – you want to meet in real life, and they can’t. Reports show their excuse is often baked right into their fake identity. Claiming to be on a faraway military base is the most popular excuse, but “offshore oil rig worker” is another common (and fake) occupation. In short, there is no end to the lies romance scammers will tell to get your money.
The way romance scammers take your money is another important piece of the story. People reported sending more money to romance scammers using cryptocurrency and bank wires than any other method. While not the costliest payment method, gift cards were the most frequently reported. Nobody legit will ever ask you to help – or insist that you invest – by sending cryptocurrency, giving them the numbers on a gift card, or by wiring money. Anyone who does is a scammer.
If an online love interest asks you for money:
Slow down and talk to someone you trust. These scammers want to rush you, often professing love right away, or pressuring you to move your conversation off the dating site.
Never wire money, put money on a gift card or cash reload card, or send cash to an online love interest. You won’t get it back.
If you experience a fraudulent transaction, contact your financial institution or credit card company to report it. They will let you know if it’s possible to reverse the transaction.
Report your experience to the dating site and to the FTC.
Money Mule Scams
If someone sends you money and asks you to send it to someone else, STOP. You could be what is called a money mule – someone scammers use to transfer and launder stolen money. The scammer will send you a check and instruct you to keep some of the money and then send a portion to someone else for any number of reasons. They might recruit you through online job ads, prize offers, dating websites, or social media platforms. When you later find out the check was bad, you could be stuck covering the entire amount of the check, including what you sent or spent.
How to avoid a money mule scam:
Never use your own bank account, or open one in your name, to transfer money for an employer or anyone else, whether it’s by check or by electronic means.
Never pay to collect a prize or move any money out of your “winnings.”
Never send money to or on behalf of someone you met online, even if they send you a check first.
Criminals are good at convincing people to help them move money by lying to them. Don’t be a money mule. You could lose money and possibly get in trouble with the law. If you spot this scam, contact your financial institution immediately and report it to the Federal Trade Commission at ftc.gov/complaint.
Gift Card Scams
Gift card scams start with a call, text, email, or social media message. Scammers will say almost anything to get you to buy gift cards — like Google Play, Apple, or Amazon cards — and hand over the card number and PIN codes. Here are some common tactics scammers use in gift card scams:
Scammers will say it’s urgent. They will say to pay them right away or something terrible will happen. They don’t want you to have time to think about what they’re saying or talk to someone you trust. Slow down. Don’t pay. It’s a scam.
Scammers will tell you which gift card to buy (and where). They might say to put money on an eBay, Google Play, Target, or Apple gift card. They might send you to a specific store — often Walmart, Target, CVS, or Walgreens. Sometimes they’ll tell you to buy cards at several stores, so cashiers won’t get suspicious. The scammer also might stay on the phone with you while you go to the store and load money onto the card. If this happens to you, hang up. It’s a scam
Scammers will ask you for the gift card number and PIN. The card number and PIN on the back of the card let the scammer get the money you loaded onto the card — even if you still have the card itself. Slow down. Don’t give them those numbers or send them a photo of the card. It’s a scam.
If you bought a gift card and gave someone the numbers off the back of the card, that’s a scam. Use your gift card and gift card store receipt for these next steps:
Report the gift card scam to the gift card company right away. No matter how long ago the scam happened, report it.
Ask for your money back. Some companies are helping stop gift card scams and might give your money back. It’s worth asking.
Tell the FTC at ReportFraud.ftc.gov. Every report makes a difference.