No One Is Safe From Consumer Fraud, Not Even the Online Savvy

Public perception derides fraud victims as naive or foolish, despite how common these kinds of scams are. In truth, we’re all more easily taken in than we think

Commentary

In her now-infamous essay for The Cut, Charlotte Cowles describes how she was conned out of $50,000 in a single afternoon. In the aftermath, Cowles felt deep shame—partly because, as a financially literate, tech-savvy, socially connected millennial, she didn’t perceive herself as the type to fall for scams.

However, when she started talking to friends about her experience, she found that many had similar horror stories. This list included a criminal-defense attorney, a real estate contractor, and an executive on Wall Street, none of whom might seem like “usual” targets.

The Typical Fraud Victim Is a Myth

Public perception derides fraud victims as naive or foolish, despite how common these kinds of scams are. In truth, we’re all more easily taken in than we think, and that leaves us vulnerable. The FTC reports that in 2023, consumers lost over $10 billion to fraud, a rise of 14 percent from 2022.

Like Cowles, we tend to think of scams as things that happen to other, less-discerning people—basically, anybody but ourselves. For example, it’s thought that the closer you are to old age, the more likely you are to fall for a scam. Older people are often less familiar with technology and thus more easily confused, which criminals exploit through tech support scams and grandparent scams, wherein the fraudsters pretend to be a relative in some kind of distress.

“Typical” fraud victims are also thought to be lonely and isolated, with a desire for online social interaction and fewer people around to dissuade them from parting with their money. Fraudsters can manipulate these victims through elaborate romance scams, for example.

However, Cowles is one of many fraud victims who don’t fall under the above categories of isolation or older age, challenging our assumptions about usual victims.

Acknowledging Our Vulnerability Is the First Step to Safety

The belief that we could never be fooled by a scam makes us complacent and unlikely to dig deeper into any evidence of foul play. Recognizing our vulnerability to exploitation helps us to remain vigilant and to identify fraud attempts instead of falling for them.

Though some scammers target specific demographics, the ubiquitousness of the fraud threat widens the circle of potential victims to include us all. This is especially true of cyber fraud techniques currently on the rise, such as phishing, identity theft, and brand impersonation. For example, online shopping scams, aimed at all consumers, made up 44 percent of total social media fraud cases in the first half of 2023.

Indeed, although those aged 80+ are scammed out of the most money in each individual case, scam frequency is actually a lot lower among this demographic. Over-80s filed 87 reports per 100,000 people last year, compared with much higher numbers for every other age range, such as 183 for those aged 30 to 39.

It seems counterintuitive, but the tech-savviness of younger generations can actually work against them. According to Deloitte, Gen Z-ers are three times more likely to fall for an online scam than Baby Boomers. Since they spend more time online, more digital scams are tailored to their generation. In addition, doing more digitally (such as online banking and retail) means scammers who get hold of any part of their details can often access multiple accounts.

Younger generations also trust people online more than digitally skeptical older consumers. Fifty percent of Gen Z and Millennials trust online services to protect their data, compared with only 30 percent of older generations. Adults under 30 trust information on social media almost as much as that in national media outlets.

Everyone Needs to Protect Themselves From Fraud

We’re all vulnerable to fraud—but there are basic steps we can take to protect ourselves. Firstly, guard your personal details. Never share financial information unless you’re paying on a secure site, and be sure to set up robust cyber defenses such as multi-factor authentication and strong passwords that you change frequently.

Only interact with trusted brands, and only through their official portals. While companies do their best to protect customers, the growing sophistication and frequency of fraud attempts mean that some will inevitably slip through the gaps.

For example, Walmart was one of the most impersonated brands of 2023, with scammers advertising bogus job offers, surveys, and giveaways. Check an organization’s credibility by looking it up, calling the official number to see if it matches the information you were given, and manually entering web addresses instead of clicking email links.

Stay alert to common signs of fraud. Requests for money are obvious, but mistakes and typos, claims about problems such as family emergencies or a computer virus, and promises of prizes should raise red flags. Scams are also often accompanied by claims of urgency and secrecy, and pressure to act immediately.

You should also stop and talk to someone you trust. This doesn’t have to mean the authorities; simply talking through events can bring clarity and lift the fog of a scam.

Consumer Fraud Could Come for Any of Us

As Cowles’s story reminds us, we can’t assume that our age, social connections, or familiarity with technology will protect us from scams. In fact, believing otherwise only makes us more vulnerable. The best defenses are vigilant checks of the entities we interact with, proactive cyber protections, and awareness of the signs to watch out for.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.

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