How to avoid fraud
The Federal Trade Commission has some tips to help you avoid becoming a victim of fraud. 1/17/25
- Adults over the age of 60 were more likely to report very high losses.
- The 18-year-old Michigan consumer lost $4,800 this summer and “forwarded” a scam “protect it to protect it” after receiving an email from someone impersonating a bank.
- Michigan Attorney General Dana Nessel’s office has heard from victims of fraud. Victims of fraud were urged by someone who has been given the authority to transfer money to protect it from various false threats.
One of the strange but incredibly harmful scams involves a scammer artist who now pretends to be someone else and ultimately convinces you that you absolutely have to send your money to protect it.
Yes, people sadly end up moving thousands of dollars (sometimes six figures) directly into the con man’s pocket. Everything is driven by a long list of lies. Regulators say that such activities have skyrocketed significantly over the past four years.
New Federal Trade Commission data shows an increase of more than four times from 2020 to 2024. Reports from seniors say they lost more than $10,000 to a scammer who transfers to protect it to convince consumers to impersonate a trusted government agency or business.
The reality is that scammers have found another way to steal your money, sometimes saving your life.
They will sound a false alarm and hope you will hurry and send your money out the door.
Adults over the age of 60 are more likely to report very high losses, and many have lost more than $100,000 to such a “relocate it to protect it” scam.
The FTC’s latest spotlight in consumer protection data shows that the total loss reported by seniors who lost more than $100,000 to these scams has skyrocketed from $55 million in 2020 to $445 million in 2024.
Business credits and government fraudsters filed by seniors with losses of over $10,000 have reached 8,269 reports in 2024, according to the FTC.
In 2024, according to the FTC, 41% of seniors who reported losing more than $10,000 in business or government fraud scams indicated that the scammers were the first to contact them by phone. About 15% indicated that the scam started with online ads or pop-ups, while 13% said the scam started with email.
Some people have urged their savings to be transferred to Apple Cash
Undoubtedly, younger consumers are also becoming victims.
The 18-year-old Michigan consumer lost $4,800 to “transfer to protect the fraud” this summer after receiving an email from someone impersonating a bank.
According to a report issued to the Troy Police Station on July 16, the first email included a supposed fraud warning in his checking account at Flagster Bank.
Consumers soon began receiving calls from people who claimed to be Flagster employees who claimed their customers’ accounts had been hacked.
People impersonating the bank told the young people he needed to verify his Social Security number. And eventually he was told he would have to transfer $4,800 on the spot from his checking account to an Apple cash account.
Police report said the victim transferred the money, but then hung up, suspecting the phone.
Police reports say when he checked his account, he realized that the money had been transferred to two vendors in Pakistani.
Generally, scammers put you in the upper hand by warning you of a fake but urgent issue. Their goal is to ultimately convince you to hand over your money to “keep your money safe.”
“The truth is, the money is sent to scammers,” according to the FTC.
The FTC noted that 33% of seniors who reported losing more than $10,000 to business or government fraud scams in 2024 showed they sent money via cryptocurrency. About 20% used bank transfers and 16% were told to hand over cash.
And yes, Crooks can handle this money transfer in a variety of ways, including suggesting that you put your money in your Apple cash account.
Apple Cash says online: “If you try to send money to someone outside your contact via Apple Cash, or if the transaction is deemed dangerous, you will be presented with a warning. To use Apple Cash safely, pay attention to the warning.”
Another red flag of fraud, according to Apple Cash, “companies and government agencies do not require payments via Apple Cash.”
Some have urged Bitcoin ATMs to transfer cash to protect them
In April I wrote about a woman who lost $17,500 after someone pretending to be a credit union had to transfer her cash to a “security” account and protect her savings from those trying to transfer her cash to her www.poker.com account.
Conclusion: Never give someone’s story that money has to be moved to protect it.
According to Nessel spokesman Danny Wimmer, Michigan Attorney General Dana Nessel’s office heard from a victim of fraud urged by someone who was misled with the power to transfer money from various false threats.
He said he claims that in many cases, an arrest warrant was issued for the person, causing some kind of panic.
Usually, telephone consumers are transferred to yet another fraudster who is impersonating government officials to agencies such as the Federal Trade Commission, the Office of Inspectors, or former U.S. S-Service, Wimmer said.
“These callers claim that once the investigation is officially opened, the assets of call recipients will be frozen, but they can quickly deposit funds into a cryptocurrency kiosk and issue a “certified check” from the government that is equal to the total funds.”
Certainly that sounds complicated, but that’s how scammers catch you off guard.
The scammer then directs consumers to certain cryptocurrency kiosks in their neighborhood, Wimmer said. Scammers tend to stay on the phone with the victim during the deposit process.
Money sent to the scammer via a crypto ATM is almost impossible to recover. Nessel warned in April that Bitcoin ATMs lacked surveillance and regulation, resulting in “an attractive option for criminals engaged in fraud and money laundering.”
Common fake stories and how to avoid fraud
To avoid such scams, beware of some of the typical stories that con artists tell you.
Someone is using your account: According to the FTC, the scammers claim they come from your bank or famous companies like Amazon, and they start saying they have flagged suspicious activities on your account.
Your ID is used in criminal acts: According to the FTC, fraudsters often pretend to warn you that your Social Security number or other information is being used to commit crimes such as drug smuggling and money laundering.
Your computer has been hacked: On-screen security alerts can pop up on computers that look like they are from Microsoft or Apple. And there’s a number to call. According to the FTC, “When you make a call, they say your online account has been hacked.”
The FTC has warned that ironically, some scammers pretend to be with the FTC, transfer money from their accounts, deposit cash in Bitcoin ATMs, and even tell people to hand over cash and gold stacks to courier services.
The FTC never asks people to do that.
Your best bet is to take a “non-involved” approach to living your life. If you are worried, you can either access a statement from your bank directly or call to ask about a potential issue and look for your credit card.
Hanging up the caller. Don’t trust the phone numbers or names they provide. Block unnecessary calls. You can file a complaint at Reportfraud.ftc.gov.
Please contact Personal Finance Columnist Susan Tom Paul: stompor@freepress.com. Follow himr x @tompor.
