As we begin a new year, it’s a perfect time to reflect on the past and look forward to the future. However, one aspect that many individuals and businesses must keep in mind during this fresh start is the ever-present threat of fraud. Scammers and fraudsters do not take a holiday, and they often capitalize on the optimism and resolutions that come with the new year. To help individuals and organizations protect themselves, the Better Business Bureau (BBB) has released valuable tips on how to avoid fraud in the coming year. With vigilance and awareness, individuals can safeguard their personal and financial well-being.
The Increasing Threat of Fraud
Fraud is a growing concern that can take many forms. Whether it’s through phishing emails, online shopping scams, or fraudulent business schemes, fraudsters use various tactics to deceive and exploit unsuspecting victims. According to recent data, consumer fraud complaints in the U.S. have surged in recent years, with millions of people falling victim to scammers every year.
The new year offers scammers fresh opportunities to take advantage of individuals who may be making financial resolutions or embarking on new ventures. Some of the most common fraud schemes that the BBB is urging people to watch out for in 2024 include:
- Online Shopping Scams: As e-commerce continues to thrive, so do scams that target online shoppers. Fraudsters may create fake websites or social media pages offering products at deeply discounted prices. These scams can lead to financial loss, identity theft, and the delivery of counterfeit or non-existent products.
- Phishing Scams: Phishing scams often take the form of emails, text messages, or phone calls that appear to be from legitimate businesses or government agencies. Scammers aim to steal personal information, such as passwords, Social Security numbers, or bank account details, by tricking individuals into clicking on fraudulent links or providing sensitive data.
- Investment Scams: Many people set financial goals at the start of a new year, and scammers know this. Investment fraud schemes, often promising high returns with little risk, continue to be a serious threat. Fraudulent investment opportunities may involve cryptocurrency, real estate, or even fake charitable organizations.
- Job Scams: With millions of people looking for new job opportunities each year, scammers target job seekers by offering fake job positions that require an upfront payment for background checks, supplies, or training materials. These scams prey on individuals eager to find work.
While these are just a few examples, fraud can take many different forms. It is critical to remain vigilant and educated about the tactics that fraudsters use to protect oneself and loved ones.
BBB’s Top Tips to Avoid Fraud
The Better Business Bureau, a trusted organization dedicated to promoting ethical business practices, offers the following tips for consumers and businesses to protect themselves from fraud in the new year:
1. Be Cautious with Unsolicited Emails and Phone Calls
One of the most common ways that fraudsters attempt to gain access to your personal information is through unsolicited communication. Whether it’s an email from your “bank” asking you to verify account information, or a phone call from a so-called “prize giveaway,” it’s important to approach unsolicited communications with caution. Always verify the identity of the sender or caller before sharing any personal information.
The BBB advises individuals to:
- Do not click on links in unsolicited emails or messages, as these can lead to fake websites designed to steal your information.
- Call the organization directly using a verified number (not the one in the email or message) to check the authenticity of the communication.
- Look for red flags, such as urgent language or requests for payment, which are common indicators of a scam.
2. Research Before Making Online Purchases
The popularity of online shopping continues to grow, and so do the risks of fraud in the e-commerce space. Before making any purchase, especially from unfamiliar websites or social media pages, it’s essential to research the seller to avoid falling victim to a scam.
The BBB suggests that consumers:
- Check for website security, such as “https://” in the URL and a secure payment method, to ensure the site is legitimate.
- Read reviews and ratings from other customers on independent review platforms or BBB’s website.
- Avoid deals that seem too good to be true, as these are often a red flag for counterfeit products or non-delivery.
- Use credit cards for online purchases, as they offer better fraud protection than debit cards.
3. Beware of Phishing Scams
Phishing scams are designed to trick you into divulging sensitive information, such as passwords or financial details. These scams may come in the form of emails, text messages, or phone calls claiming to be from trusted institutions like your bank or a government agency. The key to avoiding these scams is to always verify the source before responding.
Tips to protect yourself from phishing include:
- Do not respond directly to suspicious emails or messages. Instead, visit the official website or contact the organization directly using verified contact information.
- Look for spelling or grammatical errors in the message, which are common indicators of phishing.
- Enable multi-factor authentication (MFA) on your accounts to add an extra layer of security.
4. Be Skeptical of Unsolicited Investment Opportunities
As the year begins, many individuals look for new investment opportunities to grow their wealth. Unfortunately, scammers often capitalize on this by offering fraudulent investment schemes that promise high returns with little risk. These scams may involve stocks, bonds, cryptocurrency, or real estate.
To avoid falling victim to investment fraud:
- Verify the legitimacy of the investment with regulatory agencies, such as the U.S. Securities and Exchange Commission (SEC), or consult with a trusted financial advisor.
- Be wary of high-pressure tactics that encourage you to act quickly without conducting proper research.
- Understand the risks associated with any investment and remember that “too good to be true” usually is.
5. Use Trusted Job Search Platforms
As the job market remains competitive, scammers often target job seekers with fake job offers. These fake opportunities may ask you to pay for training, background checks, or other expenses before you’re even hired.
To protect yourself from job scams:
- Research the company before applying, looking for reviews or complaints from other job seekers.
- Do not pay for job-related expenses upfront. Legitimate employers should cover any hiring or training costs.
- Trust your instincts—if something feels off, it’s better to walk away than risk falling into a scam.
6. Monitor Your Financial Accounts Regularly
It’s essential to monitor your financial accounts regularly to detect fraudulent transactions early. Check your bank and credit card statements for any unauthorized activity, and report suspicious charges immediately. The earlier you catch fraud, the easier it is to resolve.
Conclusion
Fraud is an ever-present danger that affects individuals and businesses alike. As we head into the new year, it’s essential to stay vigilant and educated about the different types of fraud that exist. By following the BBB’s tips—such as being cautious with unsolicited communications, researching online purchases, and being skeptical of investment opportunities—individuals can better protect themselves from falling victim to scams.
The Better Business Bureau plays an important role in educating consumers and promoting trust between businesses and the public. By staying informed, practicing caution, and taking proactive steps to avoid fraud, individuals can enjoy a safer and more secure year ahead.
