Understanding the difference between scams and fraud is quite easy, both are criminal offenses, whilst fraud is the more serious of the two. Many frauds are classified as felonies versus scams, which are typically classified as misdemeanors (https://www.darkowl.com). Further information on scams and frauds can be found in a federal Trade Commission “Glossary of Scams and Legal Terms” report (https://www.ftc.gov/news-events/topics/glossory-scams-legal-terms).
Scam and fraud statistics are staggering indeed, according to a Legal Jobs report on May 20th, 2023, report by Marija Lazic “41 Shocking Scam Statistics to Keep You Safe in 2022”. (https://legaljobs.io.blog.scam-statistics). :The author goes on to list the following alarming statistics:
In the US, one in 10 adults will fall victim to a scam or fraud every year.
Around 50% of people contacted by scammers engage with them.
38% of people contacted by debt collection fraudsters engage with them, and 12% lost money.
85% of doorstep scam victims are seniors over 65 years of age.
One in ten profiles on free dating sites is a scam. Oftentimes, fraudsters are looking for money. The report goes on to mention that percentages are lower on paid sites.
Over a quarter of shoppers are victims of online shopping scam/fraud attempts on Black Friday.
Americans are more likely to be victims of ID theft than any other nationality.
One in five scam complaints come from someone over 65 years of age.
Further information regarding this report can be found at https://legaljobs.lo/blog/scam-statistics/).
What is the definition of Scam?
According to the Cambridge Dictionary, a scam is defined as a dishonest plan for making money or getting an advantage, especially one that involves tricking people (https://www.dictionary.cambridge.org).
What is the definition of fraud?
Investopedia defines fraud as an act of intentional deception designed to exploit a victim (https://www.investopedia.com).
What is the definition of misrepresentation?
According to the Legal Information Institute, a misrepresentation is a false or misleading statement or a material omission which renders other statements misleading, with an intent to deceive (https://www.law.cornell.edu.wex).
What is the definition of phishing?
According to Merriam-Webster phishing is the practice of tricking internet users via deceptive e-mail messages into revealing personal or confidential information which can be used illicitly (https://www.merriam-webster.com/dictionary).
What is the definition of smishing?
According to Forbes, Smishing, derived from “SMS” and “phishing,” is a type of cybercrime that uses deceptive text messages to manipulate victims into divulging sensitive personal information such as bank account details, credit card numbers and login credentials (https://www.forbes.com).
What is the definition of Vishing?
Vishing, short for voice phishing, refers to fraudulent phone calls or voice messages designed to trick victims into providing sensitive information, like login credentials, credit card numbers, or bank details (https://www.cisco.com).
Scam/Fraud Prevention Tips
1. There are many public and private corporate websites offering fraud/scam prevention information. The Better Business Bureau (BBB) (https://bbb.org/all/scam-prevention), in addition to offering scam/fraud prevention tips also offers some quite unique services including:
A risk calculator to help determine individual scam type exposure,
An internal search engine to help find previous BBB scam reports,
An extensive library of scam prevention resources,
A test your knowledge quiz to see if you can spot con job activity,
A scam alert sign-up feature to stay one step ahead of scammers.
2. USA.Gov the official website of the United States Government offers information on where to report scams, and specialized information on identity theft scams, imposter scams, and unemployment scams (https://www.usa.gov/scams-andfraud).
3. Moody’s Analytics offers a treasure-trove of fraud/scam prevention strategies to help in fighting and winning the never-ending war on financial fraud (https://www.moodys.com).
4. AARP has a unique website (https://www.aarp.org.scam-fraud.into-2023.glo), offering:
An extensive fraud resource database,
A look-up engine to find dozens of tips on how to recognize and avoid scams – including videos,
A tracker to help ascertain frauds being committed in your area,
Fraud/scam updates
Fraud/scam prevention webinars and tele-town halls
Connection to AARPs “Fraud Watch Network” on Facebook and Twitter.
5. The United States Postal Inspection Service website (https://usps.gov/tips-prevention) offers several special features to help in the war on fraud. These features include:
Cybercrime tips
Identity theft tips
Mail fraud prevention tips
Child safety tips
Mail and package theft tips
Suspicious mail handling tips
Financial fraud tips
Conclusion
Fraud/scam prevention is not rocket-science. The way to turn a flicker into a flame and become a soldier in the war on criminality is to put the peddle to the metal and follow the age-old adage “scam prevention soars on the wings of knowledge”. Following some and/or all the suggestions offered herein will help to put the wind beneath your wings so you can soar far above the scammer’s deadly reach!
