By Tashi McQueen
AFRO Staff Writer
tmcqueen@afro.com
As American society continues to advance, so do the ways in which fraudsters work to scam people out of their money. From cryptocurrency investment schemes to fake remote jobs and catfishing, the illicit tactics are as increasingly sophisticated as they are plentiful.
“As Americans have become more comfortable banking online and conducting transactions remotely, they have become more susceptible to fraud,” said Supervisory Special Agent Keith Custer, who works with the FBI Baltimore Field Office. “Criminals will continue to take advantage of new and emerging technologies to target their victims and conduct more effective scams.”
Custer highlighted that many of the people carrying out the crimes are international.
“Increasingly, we are seeing fraud schemes being perpetrated by transnational criminal organizations,” he said. “Many of these groups are operating out of call centers or large compounds located in India or southeast Asia and utilize sophisticated tools, including encrypted chat applications, remote desktop software, fake trading platforms and various forms of cryptocurrency to execute their schemes.”
According to officials from the Federal Trade Commission (FTC), consumers lost more than $12.5 billion to fraud in 2024, a 25 percent increase from the previous year. People reportedly lost more money to investment scams—$5.7 billion—than through any other scheme in 2024.
The FTC previously reported that cryptocurrency is becoming a popular choice for scammers. From January 2021 to March 2022, consumers reported losing more than $1 billion in cryptocurrency to fraud.
Romance schemes are reportedly the second-highest scams impacting consumers today. They often involve a fraudster creating a fake relationship online to convince the victim to send funds or personal information.
“These schemes often start on social media or dating platforms, where scammers build trust over time,” said Joel Gamble, Baltimore community manager at Chase. “Once the victim feels trust in the relationship, they are lured into fraudulent ‘investment’ or ‘crypto’ opportunities. Some even go as far as threatening victims with lies about their loved ones.”
According to FTC officials, con artists often create profiles on dating platforms and social media. They often make excuses to avoid meeting their victims in person, but eventually start asking for a medical emergency or an unanticipated legal fee.
Another type of fraud Americans should watch out for is fraudulent online job postings.
A Dec. 12, 2024, FTC report showed a sharp increase in complaints of online job scams. Job scams increased from zero in 2020 to 5,000 in 2023. In the first six months of 2024, it spiked to around 20,000. Losses due to job schemes amounted to around $220 million by the first half of 2024.
Black and Brown Americans can be particularly vulnerable to these scams.
According to an AARP report, 40 percent of Black and Latino or Hispanic adults have been targeted by a scammer, and 20 percent have lost funds to one. Furthermore, around 60 percent of Black and Brown adults who lost money to a scheme fell victim more than once.
Black adults have specifically been targeted by romance schemes and remote job scams.
The FTC recommends consumers pay attention to the following red flags: someone who says they can guarantee profits through cryptocurrency investments, a person who requires payment through cryptocurrency and job offers via text message or WhatsApp.
“Regardless of how polished it seems, are they asking you for money or personal information?” said Amy Nofziger, director of fraud victim support for AARP Fraud Watch Network. “Ask yourself, ‘Do I know this person or company? Is this request under urgency? Are they demanding payment to resolve a problem, like arrest or utilities being cut?’ These are all signs of a scam.”
“Take a deep breath and ask a friend or trusted person for advice,” added Nofziger. “Any scam will quickly get you in a heightened emotional state, either with fear or excitement, and then will ask for money.”
Consumers can report fraud complaints to the FBI, FTC, the National Center for Disaster Fraud and state and local agencies.
Great Job Tashi McQueen AFRO Staff Writer & the Team @ AFRO American Newspapers Source link for sharing this story.
