TULSA – April is Financial Literacy Month, a designation to help highlight and promote smart money management skills. Part of those skills should include knowing how to spot potential fraud – an issue impacting individuals and businesses, according to Arvest Bank, which has locations in the Cherokee County area.
According to the Federal Trade Commission, people reported losing $10 billion to scams in 2023. That’s $1 billion more than 2022 and the highest ever reported in losses. The data also state one in four people reported losing money to scams, with a median loss of $500 per person. Oklahoma residents reported $58.9 million in total fraud losses, with a median loss of $450 per person.
“Scammers can easily make texts, phone calls and emails appear legitimate in hopes of tricking the person into providing sensitive information such as usernames, passwords and financial information,” Arvest Bank-Tulsa Region President Kirk Hays said. “It’s always a good idea to be aware of the most common types of scams and how to spot them. When in doubt, take a moment to research so you don’t fall victim to fraud.”
Hays offers tips to help avoid the most common scams reported in 2023.
Imposter scams were again the top fraud reported, accounting for $2.7 billion in losses. Imposter scams include people pretending to be a bank’s fraud department, the government, a business, or even a relative. These imposters have a number of ways to contact people, including unsolicited emails, texts, and phone calls. These scams typically warn of a serious problem or an issue that requires immediate attention, such as a potential unauthorized transaction or a credit card that has been locked.
Hays advises not clicking on any links. Anyone who is uncertain should contact the business or agency allegedly responsible for contacting them.
The FTC reported scams starting on social media accounted for $1.4 billion in losses. One scenario is for a fraudster to create a fake social media account pretending to be a friend or family, then reaching out asking for money.
“To prevent this situation, reach out to the person directly – not via social media – before sending the funds,” Hays said.
Among the top 10 frauds reported, business and job opportunities scams accounted for an average individual loss of $2,137. With the rise in work-from-home employment roles, there has been an uptick in job scams. These jobs will be advertised in the same way real ones are – on social media platforms and legitimate job sites. The goal of these fraudsters is to get personally identifiable information and financial information under the disguise of pre-employment paperwork.
If a job posting or offer feels like it could be a scam, the individual needs to talk to a friend who can use a fresh set of eyes to spot fraud.
“Never pay for a job. Legitimate employers will not ask for compensation in exchange for a job,” said Hays. “Most importantly,research and vet a possible employer.”
Those who suspect fraud can report suspicious activities to the FTC at ReportFraud.ftc.gov, as well as their local financial institution.
Read More: Arvest Bank offers tips to avoid common financial fraud | News