Being scammed can be a major blow to your finances and your peace of mind. Learn how fraudsters are coming for your money -- and how you can protect yourself.
Image source: Getty Images.
You work hard for your money, and you deserve to keep it. Unfortunately, there are tons of scammers and criminals out there who would just love to get their hands on American workers' hard-earned cash.
And the data shows they’re succeeding.
The number of reported financial scams increased in 2018, and most experts believe this troubling trend will continue -- especially as we become ever more reliant on technology for all of our transactions.
To protect yourself from a financial threat, it helps to know what you’re up against. Here’s some of the troubling data -- and some tips on how to keep the scammers at bay.
More financial scams hit consumers in 2018
To get an idea of how much financial fraud rose in 2018, you can look to the Scam Tracker run by the Better Business Bureau. There were 49,387 scam reports submitted across America last year, according to the BBB. That’s one report every 11 minutes. It’s also 1,560 more scam reports than were submitted the year prior.
Scams of all different types were reported, including:
-
Online purchase scams: In an online purchase scam, fraudsters claiming to be buyers will contact sellers on online marketplaces such as Craigslist and eBay. These supposed buyers offer more money for the purchase if the seller is willing to accept a money order or cashier’s check. The payment arrives, and it’s for a larger amount than agreed upon. The "buyer" asks for the excess money to be wired back, and after the seller sends the cash, it turns out the initial payment was a fake, and the money sent to the scammer is gone for good.
-
Credit card scams: A scammer may pretend to be a representative of your bank or credit card company seeking personal information, supposedly to ensure that you’re getting the best interest rate or rewards. Once you’ve provided your info, scammers use it to steal your identity. Sometimes, thieves perpetrating these scams also ask for up-front payments in exchange for special rates or rewards, so you’re also out cash.
-
Credit repair or debt relief scams: Thieves who perpetrate these scams prey upon people desperate to escape their debt cycle or improve their credit. In most cases, scammers promise you they can make your debt disappear or bump up your credit score quickly. You’ll pay an up-front fee in exchange for recommendations that actually damage your finances -- such as withholding payment from creditors or applying for a tax ID number to use on credit applications instead of using your Social Security number.
-
Advance fee loan scams: This is a simple scam in which you’re promised a loan, no matter how bad your credit. The catch is, you have to pay an up-front fee. Once you pay, the loan never comes, but you’re out the money you spent.
-
Romance scams: In this particularly hurtful scam, which usually happens through online dating sites, fraudsters pretend to be their target's love interest. They may establish a seemingly deep connection with the victim over the course of weeks or even months -- before they start asking for money. They often claim they need the money to come visit or to pay for a personal or family emergency, but it's all untrue.
-
Employment scams: Here, thieves pretend to offer job opportunities. Then they make the would-be worker pay an up-front fee -- sometimes for materials, training, or access to job postings. In some cases, these fake employers ask for information such as Social Security numbers, which can be used for identity theft.