According to new data from the Federal Trade Commission, U.S. consumers reported losing nearly $8.8 billion to fraud in 2022 – an increase of more than 30 percent from 2021. Scams often emerge during uncertain economic times and experts expect more threats in 2023. What fraud trends should you have on your radar to keep your personal information safe?
1. Account Takeover
This occurs when a fraudster uses phishing scams, malware or the dark web to gain access to someone’s login credentials and commit financial crimes. These attacks can lead to email and bank account takeovers, as well as the reselling of personal identifiable information.
Create strong, unique passwords that have never been compromised and turn on multi-factor authentication to prevent an unauthorized party from accessing your accounts.
2. Synthetic Identity Fraud
The McKinsey Global Institute reports synthetic identity fraud as the fastest-growing financial crime in the U.S. This scam involves creating a new identity with certain real elements, like a person’s Social Security number, combined with other false information.
To avoid synthetic identity theft, secure your Social Security number and regularly review your credit reports for any discrepancies.
3. Buy Now, Pay Later (BNPL)
When making a purchase online, the retailer may have an option to buy now, pay later. At checkout, the customer puts down a small amount and agrees to pay the remaining balance in a series of interest-free installments. As the cost of living continues to rise, more consumers are switching to this payment method.
If you have an BNPL account, check for unauthorized changes like the mailing or email address. Also monitor your bank statement for purchases you do not recognize.
4. Fake Job Listings
Since the COVID-19 pandemic, hybrid and fully remote job opportunities continue to grow. Unfortunately, this shift makes it more challenging to discern a legitimate work offer from a ploy to collect sensitive information.
If a job sounds too good to be true, the description is vague, there is no official interview process or the business lacks an online presence, these are red flags.
5. AI-Generated Scams
The ongoing rise of ChatGPT and Open AI could lead to phishing correspondence generated by artificial intelligence. Fraudsters may imitate chatbots from legitimate websites to steal personal information and build malware or ransomware.
This new technology can even clone your voice and call a family member to ask for money. Imposter phone scams affected thousands of people in 2022, costing roughly $11 million.
6. Airline Travel Scams
According to the Better Business Bureau Scam Tracker, fraudsters take advantage of flight cancellations by creating phony ticket booking sites or customer service numbers to charge travelers for rescheduling fake flights. If you need to cancel or postpone a flight, contact the airline directly.
To learn more about safeguarding your personal information online, explore our eFraud Protection resources.