Top Scams and How to Avoid them

Scam Squad Guest, Dr Judy Christman Yates, DPA, Criminologist discusses IRS scams to avoid and the FTC Top Scams of 2022 1. Top Scams of 2022, https://consumer.ftc.gov/consumer-alerts/2023/02/top- scams-2022?utm_source=govdelivery, 2/23/2023 by Federal Trade Commission, Andrew Rayo, Consumer Education Specialist. “The latest FTC data book says people reported losing $8.8 billion to scams. • Investment scams were huge, with reported losses of $3.8 billion. That’s more than people lost to any other scam, and more than double the loss reported in 2021. • Impersonator scams were still the most-reported scam, with reported losses of $2.6 billion. The difference this year? Higher losses to business imposters: 2022 losses were $660 million, compared to $453 million in 2021. • If people paid a scammer, the biggest reported losses were through bank transfers ($1.5 billion reported lost to scams) and cryptocurrency ($1.4 billion reported lost). • Younger adults (ages 20-29) reported losing money more often than older adults (ages 70-79). But when older adults did lose money, they lost more than anyone else.” 2 IRS [Internal Revenue Service] scams to avoid this year, https:// www.capitalone.com/learn-grow/privacy-security/avoid-tax-scams/, 2/15/2023, Capital One. Scam Squad Guest, Dr Judy Christman Yates, DPA, Criminologist discusses IRS scams to avoid and the FTC Top Scams of 2022 1. Top Scams of 2022, https://consumer.ftc.gov/consumer-alerts/2023/02/top- scams-2022?utm_source=govdelivery, 2/23/2023 by Federal Trade Commission, Andrew Rayo, Consumer Education Specialist. “The latest FTC data book says people reported losing $8.8 billion to scams. • Investment scams were huge, with reported losses of $3.8 billion. That’s more than people lost to any other scam, and more than double the loss reported in 2021. • Impersonator scams were still the most-reported scam, with reported losses of $2.6 billion. The difference this year? Higher losses to business imposters: 2022 losses were $660 million, compared to $453 million in 2021. • If people paid a scammer, the biggest reported losses were through bank transfers ($1.5 billion reported lost to scams) and cryptocurrency ($1.4 billion reported lost). • Younger adults (ages 20-29) reported losing money more often than older adults (ages 70-79). But when older adults did lose money, they lost more than anyone else.” 2 IRS [Internal Revenue Service] scams to avoid this year, https:// www.capitalone.com/learn-grow/privacy-security/avoid-tax-scams/, 2/15/2023, Capital One. “According to the IRS, it doesn’t “initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Here are some common scams to watch out for, according to the IRS: IRS impersonation scams • Email phishing: Known as phishing, scammers may ask for personal or financial information from a taxpayer through unsolicited emails. • IRS scam calls: phishing—scammer makes a call & impersonates IRS. • IRS text messages: Another form of phishing is smishing. A taxpayer may receive a text message from a fraudulent number claiming to be the IRS. Other Tax-related scams • identity theft: uses a taxpayer’s Social Security number (SSN), to file a tax return in a taxpayer’s name. • Abusive arrangements: Scammers may reach out and tell filers they can earn tax savings if they take part in a complex scheme or arrangement. • Tax debt settlement companies: Dishonest tax companies might target individuals having trouble paying their taxes. • Ghost tax preparers: Sometimes scammers pose as tax preparers and offer to help with tax returns. But they won’t sign the return or include a preparer tax identification number (PTIN), which are both required by law. • Spear phishing: This type of attack is when scammers send an email trying to steal information—like software preparation credentials—from tax professionals.