According to a new AARP Fraud Watch Network report, two-thirds of adults in the United States believe fraud has hit a crisis level.
The new report also highlights the methods criminals use to steal money, such as cryptocurrency, gift cards and peer-to-peer payment apps. The findings suggest the need for Americans to share what they know about scams with their friends and family.
According to AARP, scammers often turn to atypical payment options in their scams like gift cards, peer-to-peer payment apps and cryptocurrency, because these forms of payment are processed quickly and cannot be reversed.
The AARP report showed one third of adults do not know it is a scam when someone directs you to use a cryptocurrency ATM to address some financial concern. In 2022 alone, the FBI says reported losses from fraud involving cryptocurrency reached $2.57 billion, a 183 percent increase from the previous year.
Gift cards also continue to be a common tool for criminals. About 25% of adults reported being unaware that being asked to make a payment or send money by gift card is a scam. A separate AARP report looking at the victim experience with gift card-related fraud emphasizes the emotional cost of these crimes in addition to the financial cost. Focus group participants felt there is little empathy for a crime that stole a reported $228 million from consumers in 2022.
Peer-to-peer apps like Venmo, Zelle and CashApp are also used in scams. These apps do not offer consumers the same level of fraud protection as credit cards, but our research showed that 63% of adults are not aware of this distinction. These types of apps should be used as they are intended: to provide payment to a known and trusted contact.
Sheridan County Undersheriff Devereaux Johnson often reports new scams on Sheridan Media’s Public Pulse program. Johnson suggests hanging up on callers claiming to be from companies informing residents of a problem with their account, then contacting that company directly. Johnson also often informs listeners that no law enforcement agencies, federal, state or local will ever call or text citizens to threaten or request payment.
Johnson recommends hanging up the phone and notifying the Sheridan County Sheriff’s Office immediately if one feels they have been contacted by scammers.
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