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The typical 60-year-old victim of fraud loses $666 to scammers. Read on to safeguard your finances.
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You may be under the impression that scams are low-budget, sketchy endeavors that anyone can spot a mile away. And in some cases, you’re totally correct. But the data suggests that modern scams may be growing more dangerous.
From 2021 to 2022, fraudsters have tripled the amount they’ve stolen from Americans, from $2.8 to $8.8 billion collectively, according to the FTC (Federal Trade Commission). That’s a serious uptick. It seems apparent that fraudsters are becoming more successful.
In 2022, for every four Americans who reported fraud to the FTC, one lost money. But what generation is losing the most? Millennials? Baby boomers? The answer may surprise you.
Typical loss by age
The average victim lost $650 to fraudsters. Turns out, younger folks (Generation Z) were the most likely to lose money to scammers — in other words, they fell for scams most often. But the oldest victims of fraud were most likely to lose more than $1,000. Here are the stats by age.
So, what does that mean for you? If you’re in your 20s, you’re a prime target for scammers. Be on the lookout for unsolicited text messages, too-good-to-be-true investment offers, and requests for personal information from unknown sources.
If you have older relatives, consider asking them to consult you before sending big donations to “strangers in need” or “new investment opportunities” — you could save them hundreds of dollars. Have them text you before wiring big amounts of money or signing up for cards.
Credit card fraud
Over 20% of reports are identity thefts. That’s when a fraudster steals information related to your identity to rob you. Credit card fraud is the most common type of identity theft — almost half of the identity thefts reported were credit-card related.
How do you avoid credit card fraud? Be sure to double-check credit card companies before applying for a new card — you could be getting scammed. To stay safe, stick to lists of best credit cards verified by experts instead of Googling credit card companies.
Invest through legitimate brokers
But the most successful type of fraud tends to be investment-related. For every four victims who reported investment fraud, about three lost money (74%). That’s a huge percentage! Plus, the typical victim of investment fraud loses $5,000, more than than any other type of scam.
Thinking about investing, but don’t know where to start? Beat scammers to the punch by setting up a brokerage account through a legitimate, top-rated stock broker. There are dozens of stock brokers out there, but only a handful of great ones. You can open an account for free.
The fact is, there are people out there who will contact you for the sole purpose of draining your personal finances. It’s unfortunate, but it’s true. The FTC suggests consulting with peers should you ever feel unsure. Keep an eye out for loved ones, and be willing to listen to their own suspicions.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.
