Scams can target you in various ways, whether through a single large transaction or ongoing schemes. Protecting yourself against these frauds is essential.

Imagine receiving a frantic call from your college-age granddaughter, claiming she’s stranded in Mexico and urgently needing money. You’re taken aback and, without verifying her situation, send funds, only to later discover she is safe at home.

Scams are everywhere, aimed at stealing your money, either in one go or over time. Below are notable types of financial scams to watch out for.

Imposter Scams

According to the Federal Trade Commission’s Consumer Sentinel Network, imposter scams are the most common, costing consumers around $3 billion in 2024—a staggering increase from $546.2 million in 2021. Scammers impersonate businesses, government officials, or even friends to deceive victims.

Currently, the prevalent scam involves fake Amazon notifications about suspicious purchases. Director of fraud prevention programs at AARP, Kathy Stokes, notes that most people assume their accounts have been hacked and unwittingly provide their login details to scammers, leading to identity theft or malware installation.

Lottery or Sweepstakes Scams

While less frequent than imposter scams, lottery scams still rank high in fraud. Victims receive messages claiming they’ve won significant cash but must first pay taxes or fees. For instance, a victim might send $10,000 expecting a $1 million prize.

“The main warning sign is any request for upfront payment to claim winnings,” warns Stokes. It’s illegal to demand payment for lottery or sweepstakes prizes.

Online Romance Scams

These scams have evolved and are increasingly common. In 2024, losses from online romance scams exceeded $823 million, compared to $304 million in 2020. Scammers often meet victims on dating apps, social media, or gaming platforms, pretending to form genuine connections.

Red flags include claims of living or working overseas, quickly professing love, and requests for financial help, such as covering travel costs or medical emergencies.

“Victims can lose their entire life savings,” Stokes cautions. Always verify friend requests and perform reverse image searches if photos seem suspicious.

Favor Requests

Scammers may pose as acquaintances, like a boss or community leader, requesting help with gift card purchases. They promise reimbursement but then exploit the shared images of the cards to steal the funds.

“It’s crucial to remain skeptical,” Stokes advises. Always confirm these types of requests through a direct call to the person involved.

Strategies to Avoid Scams

1) Avoid clicking links in texts or emails.

When receiving phishing messages, check the sender’s email address as it’s often fake. Always log in directly through official websites to check for account activity.

2) Don’t answer unknown calls.

Let voicemails screen calls. Engaging indicates your number is active, leading to more scam attempts.

3) Create a standard refusal script.

Prepare a simple response to keep by your phone, like “I don’t conduct business over the phone.” This helps protect those who may instinctively answer calls.

4) Cut off communication.

If you suspect a romance scam, cease all contact, avoid sending money, and discuss your concerns with a trusted individual.

5) Talk about scams with loved ones.

Anyone can fall victim to scams, but older adults are particularly at risk. Sharing experiences can help keep everyone alert.

6) Change the conversation around scams.

People often feel ashamed after falling for scams, which prevents reporting. Reassure them it’s a crime and they are not at fault. Use supportive language to encourage open discussions.

For more information on scams and reporting them, visit the AARP Fraud Watch Network or the FTC Consumer Information page.