Last Updated on December 4, 2024 by Stacy Earl
We all work hard for our money, but scammers work just as hard, if not harder, to take it from us.
In 2024, financial scams have become very rampant, with crooks using everything from fake investments to phishing emails to get into your wallet.
These scams are costing individuals and businesses billions of dollars every year.
In fact, a recent study by the Global Anti-Scam Alliance states that scammers steal over $1 trillion from victims per year.
It’s important to know what to look out for to protect yourself, your family, and your finances.
We’ll cover the top financial scams of 2024, break them down, and show you how to keep your hard-earned cash safe.
1. Investment Scams: If It Sounds Too Good To Be True, It Probably Is
Everyone wants a good return on their investments. But not every opportunity is the real deal. Investment scams top the charts in 2024.
In the first half of 2024, Americans lost $2.5 billion to investment fraud, and scams with more than 50,000 recorded investment scams.
That’s not all.
The Bank of Ireland reported a 76% surge in investment scams for the first half of 2024 compared to the same period in 2023.
It’s quite obvious that these scams aren’t only targeted at big investors–they’re coming after everyday folks like you and me.
How Investment Scams Work
These scams come in all shapes and sizes, from fake cryptocurrency investments to Ponzi schemes that promise sky-high returns.
They’re designed to trick you into thinking you’re putting your money into a “sure thing,” when really, they intend to drain your account and leave you with nothing.
How to protect yourself from investment scams:
- Do your homework. Research any investment opportunity thoroughly.
- Watch out for guarantees. Real investments come with risk. If someone promises big returns with no risk, run the other way.
- Trust your gut. If it feels too good to be true, it probably is.
2. Business Email Compromise (BEC): Corporate America’s Costly Mistake
Business Email Compromise, also known as BEC has drained businesses of more than $50 billion. It’s a favorite among cybercriminals due to its effectiveness and the substantial financial gains it offers.
The FBI’s Internet Crime Complaint Center (IC3) reported that BEC scams have resulted in $2.9 billion in losses for U.S. victims in 2023, marking a significant increase from previous years.
The total reported losses from BEC incidents have risen to 58% since 2020.
In 2023, there were 21,489 complaints related to BEC scams. The average loss per victim was substantial, with many organizations reporting losses exceeding $5.01 million per incident.
The FBI has also noted that since 2013, BEC scams have affected all 50 states and 177 countries, with over 140 countries receiving fraudulent transfers.
How BECs Work
Scammers pose as company executives or trusted partners and send emails to employees asking them to wire money or share sensitive information.
The emails look legitimate, but they’re cleverly designed to trick employees into sending money straight into the scammer’s account.
How to protect yourself from BECs:
- Verify, verify, verify. Always double-check any requests for money transfers, especially if they’re out of the blue.
- Slow down. Scammers rely on urgency to push people into making quick decisions. Take your time before responding to financial requests.
- Train your team. Make sure everyone knows the risks of email scams and how to spot them.
3. Imposter Scams: Playing With Your Emotions to Steal Your Money
Imposter scams are as sneaky as they come. In 2023 alone, these scams cost consumers over $2.7 billion.
These crooks pretend to be someone you know and trust. This could be your bank, a government official, or even a family member trying to get their hands on your money.
How Imposter Scams Work
These scammers will call or email you, pretending to be someone official or close to you.
They might say you owe taxes, that your bank account has been hacked, or that a loved one is in trouble and needs money right away.
And before you know it, you’ve sent them cash or given them your personal information.
How to protect yourself from imposter scams:
- Don’t trust anyone asking for money or personal information out of the blue. Always confirm the identity of the person you’re talking to before giving out any information.
- Hang up. If something feels off, end the conversation and call the organization or person directly to verify the story.
- Stay calm. Scammers want you to panic. Take a breath and think before you act.
4. Cryptocurrency and Bank Transfer Fraud: When Digital Dollars Disappear
Cryptocurrency and bank transfers are a fast, easy way to move money, but they’re also a playground for scammers. In 2023, these scams cost consumers more than $5.6 billion and are projected to double this amount by the end of 2024.
How Digital Transfer Scams Work
Fraudsters trick people into sending money to fake crypto wallets or using shady bank transfer schemes.
Once the money is gone, it’s nearly impossible to get it back because these digital transactions are often irreversible.
How to protect yourself from digital transfer scams:
- Only use trusted platforms. Don’t send money to anyone you don’t know or any platform you haven’t vetted.
- Keep your guard up. Be cautious about any request for a bank transfer or crypto transaction.
- Use secure methods. Stick to verified payment methods with consumer protections when possible.
5. Online Shopping Scams: Fake Deals That Cost You Big
It’s no news that there was a surge of financial scam activities during the Covid-19 pandemic.Over 38% of the scams during this time were attributed to online shopping scams alone. In 2023, the figures increased to 41.9%.
Of course, 2024 isn’t left out. 73,000 cases of online shopping fraud have already been reported to police in England and Wales between March 2023 and 2024.
We all love a good deal, but online shopping scams are still on the rise. These scams are getting more sophisticated, tricking people into paying for products they’ll never receive.
How Online Shopping Scams Work
Online shopping scams occur in different ways, which includes:
Fake e-commerce sites: Fraudsters set up legitimate-looking websites that mimic popular retailers, luring shoppers with discounted prices on high-demand items.
Social media marketplaces: Scammers sell goods on platforms like Facebook Marketplace or Instagram, only to disappear after receiving payment.
Subscription traps: Consumers sign up for free trials or discounted offers but are unknowingly enrolled in expensive recurring subscription fees.
This category of scams particularly targets holiday shoppers and consumers looking for deals, making online awareness and vigilance more critical than ever.
How to protect yourself from online shopping scams:
- Buy from trusted retailers. Avoid shopping from unfamiliar sites, especially if the prices seem suspiciously low.
- Use credit, not debit. Credit cards usually offer better fraud protection than debit cards.
- Check reviews. Look for reviews on independent sites to see if others have been scammed by the seller.
6. Tech Support Scams: Tricking You Into Paying for Nothing
Tech support scams have reached alarming levels in 2024, with significant implications for consumers and the overall cybersecurity field.
In 2023 alone, tech support scams have generated over $1 billion in reported losses which reflects increase in both the frequency and sophistication of these fraudulent schemes.
According to the FBI’s Internet Crime Complaint Center, there were approximately 37,560 complaints related to tech support scams last year, highlighting the persistent threat these scams pose.
Notably, approximately half of the victims were over the age of 60, indicating that older adults are particularly vulnerable to these deceptive practices.
How Tech Support Scams Work
Tech support scams typically involve fraudsters impersonating legitimate companies like Microsoft or Norton, claiming to offer assistance for non-existent computer issues.
These scammers often use various methods to initiate contact:
Pop-Up warnings: Victims may encounter alarming pop-up messages on their screens that falsely indicate a virus or security breach. They may include a phone number for “support,” leading users to call scammers who then request remote access to their devices.
Robocalls and emails: Scammers also utilize robocalls or phishing emails that appear to come from reputable companies, urging recipients to act quickly to resolve supposed security threats.
Once they gain access, scammers can steal personal information and financial data or charge victims hefty fees for services that do not exist. In many cases, individuals are convinced to make payments via cryptocurrency or other irreversible methods.
How to protect yourself from tech support scams:
- Don’t believe cold calls. Tech companies won’t call you out of the blue to tell you there’s an issue with your computer.
- Never give remote access. Don’t let anyone you don’t know or trust take control of your computer.
- Hang up and call the real company. If you think the call is legitimate, contact the company directly using their official customer service number.
7. Check Fraud: An Old-School Scam Still Costing You
You might think checks are a thing of the past, but scammers are still cashing in—literally. Check fraud continues to be a big problem in 2024.
In 2023, check fraud accounted for an estimated $21 billion in losses across the United States. This figure indicates a 90% increase in suspicious activity reports (SARs) related to check fraud from 2021 to 2023.
The number of SARs filed specifically for check fraud reached 665,505 in 2023, indicating that this type of fraud constitutes nearly 20% of all SARs submitted.
How Check Fraud Works
Scammers steal, forge, or alter checks to get money directly from your account.
They might steal checks out of your mailbox, rewrite them, or even create fake checks in your name. This method has become alarmingly efficient, with reports indicating that approximately 50% of stolen check images are posted online within just eight days of theft, often on platforms like Telegram.
How to protect yourself from check fraud:
- Switch to digital payments. It’s harder for scammers to mess with your payments when you’re not using checks.
- Use secure mailboxes. If you still use checks, make sure your outgoing mail is in a locked, secure box.
- Monitor your accounts. Regularly check your bank statements to spot any unauthorized transactions.
8. Advance Fee Scams: Pay Now, Lose Later
Advance fee scams involve fraudsters convincing victims to pay upfront fees for goods or services that never materialize, leading to substantial financial losses.
In 2023, reported cases of advance fee scams increased by over 80%, with victims losing an average of approximately $870 each. This rise reflects the ongoing economic challenges many face, making them more susceptible to such schemes.
The types of advance fee scams have diversified, with fake advertisements for loans, jobs, and rental properties becoming increasingly common. Reports also indicate that “loan fee” scams have more than doubled in the past year, with victims typically losing around $250 per incident.
The demographic most affected by these scams includes individuals aged 25 to 34, who represent nearly half of all victims. Additionally, those living in deprived areas are twice as likely to fall victim compared to those in more affluent regions, accounting for over 70% of all reported cases.
How Advance Fee Scams Work
Advance fee scams often begin with unsolicited communication which may occur through email, social media, or phone calls, and promise individuals and businesses significant financial returns or opportunities.
Common tactics used by scammers include:
Urgency and pressure: Scammers create a sense of urgency, compelling victims to act quickly without thorough evaluation.
Fake offers: Victims may be lured by offers related to loans, investments, lottery winnings, or even inheritances. For example, a scammer might pose as a lawyer claiming the victim is entitled to an inheritance but needs to pay a processing fee upfront.
Untraceable payment methods: Victims are often asked to send money via wire transfer or prepaid cards—methods that are difficult to trace and recover.
Once the upfront payment is made, the scammer typically disappears without delivering any promised goods or services. This cycle leaves victims not only financially strained but also emotionally distressed.
The Lloyds Banking Group has also noted that the economic climate significantly increases the risk of such scams, particularly among vulnerable populations who may be seeking loans or job opportunities.
How to protect yourself from advance fee scams:
- Never pay upfront for anything. If someone asks for a fee before delivering a service or product, that’s a huge red flag.
- Be skeptical of unexpected offers. If you didn’t apply for a loan or enter a contest, you can’t win it or get approved out of the blue.
- Do your research. Always investigate offers, companies, or job opportunities before handing over any money.
How to Spot a Scam
Before we wrap up, let’s dive into some actionable steps you can take to avoid falling victim to these scams.
Being aware of the common warning signs can save you from losing your money—and your peace of mind.
Red Flags to Watch Out For:
- Unsolicited requests for money or personal info: If you didn’t initiate the conversation, be skeptical of anyone asking for personal information or money.
- Urgency and pressure: Scammers often try to create a sense of panic or urgency, making you feel like you need to act “right now.” Slow down and take a moment to think before reacting.
- Too good to be true promises: If someone offers you a “guaranteed” investment return or tells you you’ve won a contest you didn’t enter, it’s a scam.
- Requests for payment via untraceable methods: Scammers often ask for payment via gift cards, wire transfers, or cryptocurrency because these methods are hard to trace and nearly impossible to reverse.
- Unverified links or attachments: Be cautious of any links or files sent through emails or texts from unknown senders. These could be phishing attempts to steal your information.
Quick Tip:
If you’re ever unsure about a financial offer or request, trust your gut and take the time to research before making any decisions. When in doubt, ask a trusted financial advisor or check with consumer protection agencies like the FTC.
FAQs: Your Questions About Scams Answered
We know that financial scams can be confusing and scary, so here are some frequently asked questions (FAQs) to help you navigate through them.
1. What should I do if I think I’ve fallen for a scam?
If you think you’ve been scammed, the first step is to act quickly. Contact your bank or credit card provider to stop any unauthorized transactions. Next, report the scam to the Federal Trade Commission (FTC) or your local consumer protection agency.
2. Can I get my money back after being scammed?
It depends. Some payment methods, like credit cards, offer fraud protection and might allow you to dispute a transaction. However, payments through wire transfers or cryptocurrency are usually impossible to recover.
3. How can I protect my personal information online?
Use strong, unique passwords for all your accounts, enable two-factor authentication, and be cautious about the personal information you share on social media or through email.
4. What are the safest ways to pay for online purchases?
Stick to trusted payment methods like credit cards or PayPal, which offer fraud protection. Avoid using wire transfers, gift cards, or cryptocurrency for purchases from unknown sellers.
5. How do I spot a fake investment opportunity?
Watch out for high-pressure sales tactics, guaranteed returns, and opportunities that sound too good to be true. Always research the company and the individuals behind the offer before investing any money.
Protect Yourself From Scams
The best way to protect yourself from financial scams is to stay informed and keep your guard up.
Scammers are always looking for new ways to trick you, but with the right knowledge and habits, you can avoid falling victim to their schemes.
Stay cautious, ask questions, and never rush into financial decisions.
It’s your money. Guard it like your future depends on it–because it does!