AARP warns scams soared in 2021
The numbers are in. The Federal Trade Commission released its annual compendium of fraud reports from last year, and the news is shocking. Over the past three years, reported losses to consumer fraud has tripled, coming in at a reported $5.9 billion in 2021.
Nearly six million US consumers reported a scam last year and the median loss was $500. But the FTC can only tell us about fraud that was reported – we know the losses and number of victims is far higher.
Many factors contribute to under-reporting, including the abundant shame victims feel. This has to change, and it starts with how we talk about fraud victims. Let’s all commit to help change the current narrative that suggests it’s the victim’s fault – she was duped, he was swindled, they fell for it. Focus instead on the crime and the criminal. Let’s ease the emotional burden while making it clear that fraud is a crime and we need our lawmakers and criminal justice system to do more to combat the multi-billiondollar fraud industry. #notthevictimsfault Avoiding IRS
Impostors
Tax time is here again and so are the IRS impostors. Scammers posing as IRS agents or Treasury Department officials are calling to convince taxpayers that they owe back taxes and face immediate arrest if they don’t pay immediately.
Know that anytime a taxpayer faces a tax problem, the real IRS will reach out via mail, and will not call unless they don’t hear back after multiple letters. If you receive an unexpected phone call, email or text indicating it’s the IRS, do not engage. If you are concerned you may owe back taxes, call the IRS at 800-829-1040 or visit irs.gov/balancedue.
Debt Relief Scams
Debt is something that can creep up on anyone, and before long, you are looking for a way out of it. But use caution — sometimes, tempting offers of debt relief will only make your own problems worse, while lining the pockets of criminal scammers.
Debt relief scams promise “guarantees” to get you out of debt quickly and cleanly. They often ask for advance payment (which is illegal) for the “services” they provide. Sometimes they will even advise you to stop paying your creditors.
If you are struggling with debt, consider negotiating with creditors directly or connect with a debt counselor through a nonprofit credit counseling organization, such as the National Foundation for Credit Counseling (nfcc.org).
Crypto = Quick Currency for Criminals
Sometimes you can spot a scam based on how you are prompted to pay for something – say, lottery winnings or a past due utility bill. What once was the domain of wire transfers and gift cards is fast becoming flooded with cryptocurrency as a form of payment in scams. (No form of payment ever really goes out of style, but criminals jump on new ways of stealing money at every opportunity.)
Most of us don’t understand cryptocurrency, and may not care to, and that might make us feel protected. However, buying cryptocurrency might be as close as your local grocery store. Many retail locations are adding machines that allow customers to buy and send cryptocurrency with a debit or credit card. This means that, once a criminal has their target convinced of a threat or opportunity – something they call getting them “under the ether” - they simply can send their victim to the nearest crypto machine to get paid.
Rapidly changing financial technology makes it hard to stay up to speed on the latest threats. But it isn’t hard to stay up on the latest scams making use of them – sign up for biweekly Watchdog Alerts from AARP at aarp.org/ watchdogalerts, or text FWN to 50757.
Be a fraud fighter! If you can spot a scam, you can stop a scam. Visit the AARP Fraud Watch Network at www.aarp org/fraudwatchnetwork or call the AARP Fraud Watch Helpline