How to protect your loved ones from the rise in financial fraud
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Financial fraud has exploded to record levels over the last five years. Since 2020, online fraud losses reported to the FBI’s Internet Crime Complaint Center (IC3) more than quadrupled, reaching $16.6 billion in 2024.
That same year, U.S. consumers made 6.5 million reports, totaling $12.5 billion in losses to the Federal Trade Commission, with identity theft most reported, followed by imposter scams, in which people claim to be someone else to get money. In addition to a surge in the amount of losses reported and the total complaints across agencies, there’s also been a dramatic increase in the types of fraud, with leaps in sophistication enabled by technology.
A breakdown of losses by age shows that the amount increased with age. Of complaints to the FBI that included age ranges, here are the 2024 totals:
Under 20: $22.5 million
Ages 20-29: $540.1 million
Ages 30-39: $1.4 billion
Ages 40-49: $2.21 billion
Ages 50-59: $2.5 billion
Ages 60+: $4.8 billion
Actual numbers are estimated to be much higher since not all fraud is reported. The FTC estimates that 1 in 5 adults over age 50 are affected by financial exploitation and that adults over age 60 actually lose as much as $62 billion each year.
Younger adults (ages 20-29) had lower losses overall, but reported losing money more often, in 44% of claims. Older adults ages 70+ experienced the highest median losses of any age group, at at $1,000 for ages 70-79, and $1,650 for ages 80+, according to the FTC. Read more about the latest scams targeting seniors.
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The rise of financial fraud
Difference between fraud and scams
Overall, fraud is a crime that uses deception for financial or other personal gain. It covers a broad range of tactics, such as fake online shops that charge consumers for non-existent products or investments that promise high returns but aren’t real.
Scams are a type of fraud that often target certain individuals or groups based on vulnerabilities and usually involve the victim being tricked into giving financial or personal information voluntarily.
Factors in fraud
Many factors have contributed to the rise of financial fraud in the expanded digital landscape. Advanced techniques and the use of artificial intelligence have made scams more convincing and harder to detect, especially if it’s seemingly a family member, friend, romantic partner, or coworker.
Another factor in the prevalence of fraud is a lack of public awareness. The best way for consumers to prevent fraud is to learn how to recognize and avoid it. It’s important to educate yourself and your loved ones so they don’t become a victim. One way to get started is with Greenlight Family Shield for all generations. Families from teens to grandparents can share a plan that monitors finances and spots suspicious activity. The plan covers up to $100,000 for deceptive transfer fraud and up to $1 million for identity theft for primary account holders and supported adults.
Most common scams and how to avoid them
Watch for the most common scams reported to the FBI and FTC in 2024.
Imposter scams. This was the top fraud category reported to the FTC, with reported losses of $2.95 billion. In these scams, people pretend to be a business (like your bank’s fraud department, shopping website’s billing department, or streaming service’s tech support), the government (like the IRS or Social Security Administration), an authority figure (like a police detective or attorney), or a relative in distress asking you to send money.
Tips to stay safe: Always verify identity. Call your relative directly from your contacts or call back the company at a listed number. If you get a text message or email from a business, watch out for spoofing, which disguises their communications to appear legitimate in caller ID, email address, or website URL. Carefully review for slight differences, which could be just one letter. Don’t click unverified links and enter personal or financial information. Phishing is an attempt to steal sensitive information or install malware.
Investment scams. The highest amount of losses came from investment scams, which use false information to lure investors, usually promising high returns with minimal risk. Many asked for money through payment services, like Zelle or Venmo, or cryptocurrency wallets to invest in the stock market. The median loss was $9,196.
Tips to stay safe: Remember that if it seems too good to be true, it probably is. Only invest money through trusted accounts after doing your research.
Online shopping scams. The second most common type of fraud reported to the FTC in 2024 was online shopping scams. A large percentage of social media scams came from fake storefronts that sold counterfeit products or didn’t deliver anything. The FTC announced new rules in 2024 to support authentic online reviews, which prohibit the creation of fake reviews, such as AI-generated testimonials, the suppression of negative reviews, and compensation for positive reviews.
Tips to stay safe: Double-check the business. Search online for their name with “scam” or “legit” for any reports. Check the Better Business Bureau for any complaints. Remember that reviews can be deceiving.
Business and job opportunity. The third most common type of fraud reported to the FTC was related to a false job or business opportunity that required money, such as upfront payment or cash.
Tips to stay safe: Don’t pay to receive job offers. Verify the company and call directly to be sure it’s legitimate. The same goes for prizes, sweepstakes, and lotteries. If you’re asked to pay money for something “free” it’s likely a scam.
New scams are constantly emerging, so it's important to stay up to date on the latest trends, such as high-tech scams that impersonate family members with voice cloning. Keep in mind that scammers often take advantage of current events to add to their perceived legitimacy and urgency. They may impersonate celebrities, elected officials, or political candidates.
Proactive fraud protection tips
Education raises awareness of fraud risks and prepares you to detect and avoid scams. In 2024, the FBI announced an awareness campaign called “Take a Beat,” urging consumers to think first when receiving messages that could be fraud, whether by phone, text message, email, mailbox, or a door-to-door offer.
“One of the most common tactics scammers employ is a false sense of urgency or isolation,” the FBI said in a release. “They may try to instill trust, induce empathy, or fear, or promise monetary gains, companionship, or employment opportunities—all to lure victims into immediate action.”
Here are steps and actions to avoid to keep yourself and your loved ones safe from fraud.
Protect your personal and financial information
Passwords. Keep your passwords strong and unique. Use two-factor authentication when possible, so that you will receive an email or text message to verify it’s really you signing in. Be careful what personal information you share online, such as pet names, schools you attended, or anything that could give scammers clues about your password or security questions.
Login credentials. Don’t share any account information with others. This includes usernames, passwords, PINs, and any one-time codes that you may receive about an account, which could indicate someone is trying to use your two-factor authentication to gain access.
Transactions. Keep an eye out for suspicious activity on your financial accounts. If you believe that a criminal may have gained access to a device or an account, contact your financial institutions immediately to protect your accounts and avoid losses.
Money. Never send money, checks, gift cards, or wire information without verifying directly the person or business. Be skeptical about unsolicited communications and always confirm their legitimacy. Check the Better Business Bureau and search online. Credit cards were the most common payment method for fraud in 2024, but bank transfers or bank payments had the highest overall losses. Someone asking you to buy multiple gift cards to pay for a transaction or help them in a bind is a common scam.
Use technology to stay secure
Monitor financial accounts. Greenlight Family Shield monitors for suspicious activity in most checking, savings, investing, or credit card accounts, including large transfers, low balances, or overdrafts, and alerts you and your loved ones to suspicious activity. Greenlight helps you and your trusted contacts catch suspicious financial activity — giving you time to act.
Block robocalls. Unsolicited calls are a common tactic that scammers use. You can reduce the chances of becoming a victim by limiting calls that are received.
Use antivirus software. Install reputable software on devices to help prevent phishing attacks or malware, which is a type of software designed to cause harm to computers or their users, such as viruses or spyware. Enable pop-up blockers, and be careful before downloading. Be sure to keep your software updated to guard against the latest threats.
Staying safe
The growth in financial fraud is not slowing down, but taking proactive measures can protect you and your family. Talk about new scams you hear about and share prevention information with loved ones so they can stay safe.
If fraud happens, it’s important to act immediately to minimize damage. Contact customer support for your bank or payment method to freeze any further transactions — and research whether you have access to other protections. For example, Greenlight Family Shield includes up to $1 million in identity theft coverage and up to $100K deceptive transfer fraud coverage, which can help if you or a loved one are convinced to send money to an imposter acting as a trusted person or business.
Report fraud to the Federal Trade Commission or FBI’s Internet Crime Complaint Center (IC3), even if you avoided the scam and didn’t lose any money. You can also warn others with the Better Business Bureau’s Scam Tracker.
By staying vigilant and leveraging available tools like Greenlight Family Shield you can help keep all generations safe from financial fraud.
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