2024 fraud trends show sweepstakes & prizes scams are #1, while cryptocurrency scams are the most expensive

Fraud.org’s annual Top Ten Scams report for 2024 is out. This year, the most common scams reported were Prizes, Sweepstakes, and Free Gifts, accounting for 38% of all complaints. However, the most financially damaging scams were Cryptocurrency and Investment schemes, with a reported median loss of $30,000—up from $20,000 in 2023. To view the full report of this year’s top scams, click here. These alarming trends highlight the need for increased awareness and vigilance when it comes to online and financial transactions.

Even if you think you’re “too smart to fall for it,” the truth is that no one can ever be 100% safe from fraud. That said, getting informed about some of the warning signs of these scams can help reduce your risk. And while each scam is different, almost every fraudulent pitch includes one or more of the following elements:

• A false sense of urgency – The scammer may claim that something terrible has happened or that you are about to miss out on something great. (e.g., A relative is in danger! You’ve got malware on your computer! Your package has been delayed! This prize is only available for a limited time!). Regardless of the pitch, the goal is the same: to get you to act quickly before you have time to stop and think. Learning to recognize this can help you slow down and seek help.
• An unusual way to pay – Scammers are almost always after one thing: money. And they want to get it as quickly, anonymously, and irreversibly as possible. That’s why they will often ask for victims to pay via an unusual method – cryptocurrency, P2P apps, gift cards, bank-to-bank transfers, or even cash – that most of us rarely use. A common feature of all of these payment methods is that once the money is sent, it’s gone. Your chances of getting it back, even if you realize you’ve been scammed, are very slim. Remember: If they ask you to pay an unusual way, walk away.
• Creating isolation – Scammers thrive by limiting the information you receive from other people who might alert you to the crime. They might claim that no one will believe you, that if you tell anyone something terrible will happen to you or a loved one, that secrecy is needed by the police to catch the scammer, etc. Regardless of the specifics, the goal is the same: to keep you from asking people you know and trust for advice and help. Remember: If they ask you to keep it between you and them, that’s a red flag for fraud.

Even if you’re not sure if a pitch is a scam or not, it pays to report it. Reporting real or suspected fraud can help law enforcement, businesses, and consumer protection agencies spot trends, change business practices, and build cases against scammers so that fewer consumers become victims. Fraud.org is a great place to report fraud, but you can also report scams to the Federal Trade Commission, the FBI’s Internet Crime Complaint Center, your state attorney general, and your local police department.

User reviews are a key part of many consumers’ decision to buy products, but not all reviews are trustworthy. The Federal Trade Commission (FTC) has estimated that between $55 billion and $146 billion worth of goods and services sold in 2023 were associated with fraudulent user reviews—including fake reviews for products sold online and fake reviews hosted online for products sold in person (like restaurants or hotels). These practices can result in real losses for buyers. Consumers may be deceived into paying more for lower quality or unsafe products and supporting businesses they might otherwise avoid. 

The FTC released an estimate alongside its recent ban on fake reviews, which also noted that approximately 10% of products had manipulated reviews. These can be reviews written by individuals who received compensation for expressing a particular viewpoint (either positive or negative), reviews posted by someone who does not disclose their connection with a seller (like a manager who works at the business they’re reviewing) or reviews that are suppressedbecause a seller doesn’t like the content of the reviews. 

The problem is not confined just to e-commerce. The ban on fake reviews also extends to social media users who post product reviews and then purchase engagement metrics (likes, comments, follows, views, shares, saves. etc.) to make it seem as if a high number of users “like” the post. Artificially boosting product reviews posted on social media in this way can deceive real consumers into believing that many individuals saw the post and agreed with the review. As most social media platforms increase the visibility of posts that receive lots of user engagement, illicitly purchasing fake engagement can result in a greater number of real users seeing the deceptive post. 

Sometimes, you can tell if user reviews are artificial. A reviewer might post an unusually high number of glowing reviews in a short amount of time, or a seller may have a significant number of reviews within just a few hours or days of listing a product for sale. Most often, though, it is difficult to know with certainty that you are encountering review manipulation.  

• If someone asks you to write a fake review—a review for a product you have not actually used and/or a review expressing a specifically requested viewpoint—reject their request 
• Similarly, you should turn down offers of compensation in exchange for providing social media engagement (likes, views, comments, follows, shares, etc.) on product review posts. 
• Nobody should intimidate, threaten, or suppress reviews due to legitimate criticisms (or praise) expressed in those reviews. 
• Your employer shouldn’t pressure you to write reviews for products you’re selling without disclosing your connection to the business. 

If you encounter these kinds of behaviors or suspect that a product or platform has a high number of fake reviews, submit a fraud report to the FTC and Fraud.org. 

A recent trend in scams has seen fraudsters stealing significant sums of money by deceiving victims into handing over gold bars. Some media reports have found individuals who lost nearly their entire life’s savings to these criminals. The FBI also issued an alert on this trend, stating that victims reported losing $55 million to this type of crime in a 7-month period last year.

Typically, these scams involve the impersonation of government officials or agencies to convince the victims to provide the valuables. The criminals may pretend to be with the FBI, U.S. Department of Justice, U.S. Treasury, Federal Trade Commission, or other similar authorities. They may also pose as tech support or bank workers to better deceive their target; or any combination of these tactics. After establishing contact, they often claim that the victim’s bank account has been compromised and they should convert their deposits into cash, gold, or other precious metals for better protection.

After successfully convincing the victim to make a withdrawal and/or conversion to gold, the fraudsters send a courier to retrieve the gold, often under the false promise of better protection for the target’s deposits. The criminals or their associates have both gone to victims’ houses and agreed to meet in public to pick up the valuables. Ultimately, the victim never sees their funds returned by the criminals.

Sometimes, the fraudsters are able to deceive their victim into making multiple withdrawals. One Maryland resident lost $1.1 million after he purchased gold bars for scammers on 10 separate occasions over a three-month period.

If someone claims that your bank deposits are in danger, keep the following in mind:

• Governmental agencies will never instruct you to purchase gold or other precious metals to “protect your funds.” The U.S. government already insures participating institutions on qualifying deposits under $250,000.
• Beware of unsolicited pop-ups on your computer, links sent via text messages, or email links and attachments. Do not click on these links, respond to the telephone numbers (via call or text), or reply to the emails.
• Do not allow unknown individuals (even someone claiming to be with “tech support”) to access your computer remotely.
• Do not meet with strangers to deliver gold, cash, or other valuables.
• Contact your bank independently through the number on a billing statement or their verified website. Often, they can clarify if there is actually a threat to your funds.
• Verify that requests are legitimate before making major withdrawals and other similar decisions. An internet search for the impersonated agency name or your bank’s name plus a few keywords from the request should produce official announcements and/or media coverage. For example, searching “FTC gold bars” results in several warnings from the agency and news outlets about this scam.

A number of government agencies have been warning consumers about a sharp rise in phishing attacks centered around fake toll charges. The FBI alone received over 2,000 complaints related to the surge in fake toll scams within a one-month period. Many state attorneys general and toll authorities have received similar spikes in reports as well. 

The fraud hinges on impersonation, with the scammers posing as toll collectors and sending text messages claiming that the recipient owes money for unpaid tolls. Reported messages have said that the individual owes around $12 but can be hit with a $50 late fee. The texts then include a web link taking the target to what appears to be an authentic site for paying tolls. 

Like other phishing attempts, this scam aims to deceive recipients into providing personal information to the fraudsters. Criminals can then use this data to commit identity theft and gain access to the individual’s online accounts. Additionally, if the target responds to the phishing attempt, this signals that the recipient phone number is live, which can result in a greater number of scams targeted to that (now verified) number. 

Keep the following tips in mind to protect yourself from these phishing attacks: 

• Do not respond to the message or click on any links. Clicking on web links or attachments can make your device vulnerable to malware and jeopardize your personal data, in addition to signaling to scammers that there is a live target associated with the receiving phone number or email. 
• Check your local toll operator’s website. Impersonated authorities will often put a warning on their site with resources and methods to help consumers distinguish the legitimate agency from scammers. If you do owe a toll, this is where you would make a payment. 
• Look for mistakes in the message. Some states like Michigan have toll bridges and tunnels, but not toll roads. Scammers may also spell the names of toll collection agencies incorrectly. Inconsistencies like these are red flags that the message is not authentic.  
• Report the message to law enforcement. The FBI, the FTC, and state attorneys general rely on repots of fraud to track trends, pursue the criminals, and compensate victims when possible. 
• Report the message as junk to your phone carrier. This can be done with your phone’s built in “report junk” button or by forwarding the message to 7726 (SPAM). This allows your phone carrier to better detect and block fraudulent messages on its network. Using the built in “report junk” button often deletes the message from your phone, so this should be done last. 

Tax Day, April 15, is fast approaching. As you prepare your tax filings to meet the deadline, we have compiled resources and tips to help you protect your identity, avoid fraud, and file safely.  

File as early as possible, even if you don’t owe money 

According to the IRS, there are almost 1 million taxpayers with unclaimed refunds totaling more than $1 billion—just from 2020. These unclaimed refunds will expire after May 17. That’s a good reminder not to leave any money on the table and to file each year, even if you’re confident you don’t owe any taxes. Across the federal, state, and local levels, there are often changes to tax credits and brackets each year, which may apply to you. 

It’s best to file as early as possible. If you have already claimed your refund, that prevents a scammer from filing on your behalf and trying to take the money for themselves. 

Avoid scammers offering to file your taxes for you 

Filing your taxes involves a lot of sensitive information that could be valuable for fraudsters to obtain. Providing this data to the wrong people can increase your risk of becoming a victim of identity theft and experiencing financial loss. You also might face penalties from the IRS for failing to file before the deadline if you mistakenly filed with a fraudulent service.  

The IRS has launched a new online Direct File program, allowing certain eligible taxpayers to file their federal taxes directly with the IRS for free. More information on IRS Direct File can be found here. 

If you are ineligible for IRS Direct File, or if you need to file non-federal taxes, check the IRS’ list of trusted partners. 

Be wary of unexpected tax-related documents and communications 

Proceed with caution when receiving unsolicited tax transcripts, Employer Identification Numbers, W-2’s, notices asking you to take action on a tax preparation account, or letters claiming to be from the IRS during a year you didn’t earn income (or file a tax return). These are often fake notices sent out by scammers, hoping you will panic and send them cash. If they’re legitimate—and you are truly unsure why you are receiving such a document—that may be a sign that someone has stolen your identity and is making filings on your behalf. 

If you owe taxes to the IRS, the agency typically begins notifying you via a paper bill in the mail. You can also check what taxes you may owe at IRS.gov/account. For added security, you can request an IRS Identity Protection (IP) PIN. If your account has an IP PIN, the IRS will automatically send a new IP PIN each year and reject filings for your account that don’t use the IP PIN. However, once you enroll in the IP PIN program, there’s no way to opt out. More information on IP PIN’s can be found here. 

Report tax scams 

If you encounter suspected fraud, it’s best not to interact with the scammer (don’t click any links or open attachments). You can file a report with Fraud.org here and report the incident to the IRS here. 

Reporting fraud is important for agencies and experts to understand what is happening, learn how scams may be evolving, and develop proper safeguards to protect individuals.