Americans Lose $4,000 in Scams Over Their Lifetime. Here’s How to Protect Yourself

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More than half of Americans say they’ve been scammed. Read on for tips on how to avoid being a victim. 

Years ago, I received an email that I thought was from eBay asking me to update my account. I wrongfully assumed it was legitimate and went to the site to update my personal information. Fortunately, I figured out the site was trying to take my information before I entered any bank account details or anything personal.

But not everyone is so lucky. A recent survey from IPX1031 — a qualified intermediary financial company — shows that 29% of Americans were scammed in the past year, with an average of $1,500 lost. And when accounting for all scams Americans fall victim to, the survey results showed that consumers lose $4,000 over their lifetimes.

If the latest data is any indicator, most Americans will be scammed out of money at some point in their lifetime — 55% already have been — so let’s look at which scams are the most common and how to protect your personal finances.

Watch out for these popular scams

According to the survey data, online scammers don’t discriminate too much between age groups. The results showed that 58% of baby boomers had been scammed, followed by 55% of Gen X, 54% of millennials, and 53% of Gen Z.

While there are tons of different ways you can be scammed out of your money online, the top three scams that cost Americans the most money were online shopping scams, identity theft, and credit card scams. Here are a few examples of what each one looks like:

Online shopping scams: This happens when someone uses a website (or even an app) that they think is legitimate to buy a product. But the website or app is actually fake and steals their personal and financial information.Identity theft: The Consumer Financial Protection Bureau (CFPB) says that identity theft can involve any type of stolen personal information, including your name, Social Security number, or credit card information. Once someone has your information, they may open a new account in your name, get a credit card, or even rent an apartment.Credit card scams: There are many types of credit card scams, including phishing, skimming, mail theft, malware, and many more. You can see an extensive list of credit card scams here.

How to protect yourself from scams

While it may be nearly impossible to protect yourself against every scam, you can take some practical steps to make yourself less vulnerable. Here are some tips to protect yourself, compiled from the CFPB, FDIC, and Experian:

Be careful what information you share: The CFPB recommends not sharing numbers or passwords for accounts, credit cards, or Social Security with others.
Watch out for deals that are too good to be true: An email or phone message with a deal that sounds too good to pass up could be a scam. Avoid these, especially if you’re required to pay a fee to get a promised prize.
Put your phone number on the National Do Not Call Registry: This won’t help you avoid online scams, but it will help protect you from phone and text scams. You can add your number to the list by going to the Do Not Call Registry.
Scrutinize apps and websites that ask for information: The FDIC says you should be careful with apps and websites that ask for access to contacts, text messages, passwords, or credit card information. A potential red flag is when the site uses poor grammar and has misspelled words.
Be wary of unsolicited emails: If you receive an email that appears to come from a legitimate source, check for typos or mistakes, as recommended by the FDIC. Be skeptical if the email asks for personal or financial information or has attachments that look like coupons or payment forms.
Ensure your online payments are secure: Before making a payment online, see if the website has “https” at the beginning of the website address. This indicates that the site is secure.
Monitor your credit card activity: Experian recommends you keep a close eye on your purchases to spot any discrepancies. Check credit card statements regularly.
Monitor your identity: Signing up for identity theft monitoring can be a good way to keep track of what accounts you have open and whether someone may be using your personal information.

Unfortunately, while getting scammed is common, most people don’t report it. The IPX1031 survey said that 39% of Americans who’ve been scammed didn’t report it, with the top two reasons being that they didn’t think enough money was taken or didn’t know how to report it.

If you think you’ve been scammed. you can answer a simple questionnaire on the USA.gov website to find out where you should report it.

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