As Americans already face high prices and an uncertain economy, they now must deal with an epidemic of scammers and fraudsters trying to steal their money. A new Time magazine report calls it the "Golden Age of Scams" thanks to technology advancements and the amount of personal data now circulating through the public sphere. "Just about the time we all get convinced that there's not a Nigerian prince looking to give us money, they come up with all new ways of taking our money," says Bill Dendy, certified financial planner.
The Federal Trade Commission estimates Americans lost $10 billion to fraud last year, a record high that is likely underreported since a lot of victims don't come forward. That includes everything from fake bills and business opportunities, to elaborate kidnapping scams. "It can sound so legitimate at first," says Dendy. "A call from the IRS, a call from local police, a call from somebody you think you know, but you actually don't because their email or phone number has been compromised."
So-called "imposter scams" were the biggest issue last year, responsible for about half of all frauds reported to the FTC and costing more than $1 billion in stolen money. The Department of Justice has increased efforts to crack down on scammers in recent years, but law enforcement will likely always be a step behind. That places the onus on us to be vigilant and disciplined in avoiding these scams in the first place.
Dendy says the first thing we need to do is slow down before taking any action or paying any money. "Most people who make the mistake and get pulled in are acting too quickly," he tells KTRH. "They're put into an emergency situation, or they're very excited because they think they just won a great prize, and they act without giving it a whole lot of thought."
"If you aren't sure about something, slow down and think through it, and you won't make the mistakes."