Category: Community Service

April 15 is almost here, and many Americans are realizing that their plans to do their own taxes this year didn’t work out. If you’re one of them and looking for some last-minute help, here’s what to look out for to avoid fraudulent tax preparers.

Pay attention to payment and promises. Tax scammers may ask for payment in cash up-front or ask to be paid a percentage of your return. Some might also promise a large return before they even see your paperwork. These are all red flags. No one can guarantee you a return nor should anyone be paid in advance or more than a standard fee.

Another warning sign is someone who avoids filling out their tax preparer ID or refuses to sign your return. Anyone who isn’t willing to identify themselves on your tax forms or asks you to sign your tax return before it’s completed shouldn’t be trusted.

Tax season can be stressful, but resources are available at IRS.gov to help you find a reliable and safe professional to help you through it.

Be a fraud fighter! If you can spot a scam, you can stop a scam.

Report scams to local law enforcement. For help from AARP, call 1-877-908-3360 or visit the AARP Fraud Watch Network at aarp.org/fraudwatchnetwork.

All too often, victims of fraud are repeatedly deceived by the same criminals regarding the same scheme. Or, once victimized, some are that much more vulnerable to new scams.

Fraud reached unprecedented levels in 2024, with a staggering $12.5 billion lost, a shocking increase of 25% over 2023. The number of reports remained stable from 2023 to 2024, but the percentage of reporters who had money stolen jumped from 27% to 38%.

Key Takeaways:

• Impostor scams continue to rise, with criminals impersonating trusted individuals, companies, or government agencies to deceive victims.
• 1 in 5 victims of impostor scams had money stolen from them, with an average loss of about $800 per person.
• Many scams were tied to gift card purchases or cryptocurrency, with a total of $2.95 billion being stolen from consumers across the country.

Email remained the most popular method for criminals to reach their victims, with a 25% increase in its use compared to last year.

These numbers are shocking, but the true extent of fraud is likely much higher, as a significant amount of fraud goes unreported. Last October, the FTC factored in underreporting from 2023, estimating that the $10.4 billion in losses reported to the agency that year was more like $158.3 billion.

Be a fraud fighter! If you can spot a scam, you can stop a scam.

All too often, victims of fraud are repeatedly deceived by the same criminals regarding the same scheme. Or, once victimized, some are that much more vulnerable to new scams.

If your loved one is experiencing this, gently ask thoughtful questions that may prompt them to reflect on the situation, helping them recognize inconsistencies and come to their own conclusion that it may be a scam. It’s also important to try to understand underlying issues like unmet emotional or financial needs and develop a plan to address them.

Importantly, have regular discussions about scams with family and friends. When you read or hear about some new scheme, talk about it. Put your concerns about protecting your loved ones in the context that fraud is everywhere but together we can help protect one another.

Lastly, and most importantly, avoid blaming the victim. Criminals are skilled manipulators who exploit our emotions. Victims need support, understanding and reassurance from their loved ones.

Be a fraud fighter! If you can spot a scam, you can stop a scam.

Understanding the ways criminals seek to steal money can help you stay a step ahead of scams.

While scams take many forms, scammers may seek payment through a few hard-to-trace methods with few or no protections, including gift cards, cryptocurrency, wire transfers, peer-to-peer apps and, more recently, gold bars.

Criminals impersonating law enforcement or bank employees may convince targets to protect their bank accounts from an active hack by withdrawing their savings and purchasing gold bars as a way to keep their money safe. Then they send a courier to pick up the gold bars for ‘safekeeping.’ This scheme is happening across the country and victims are having their entire life savings stolen in this way. If your bank calls about an urgent matter, hang up and call them back at a number you know to be legitimate.

Be a fraud fighter! If you can spot a scam, you can stop a scam.

Winter is still here and many of us would do just about anything to find some warm weather. Enter the cruise scam. Many of these trips to nowhere literally pop up online as a “free” incentive or a can’t-miss deal. What they really are is an attempt to steal your information or your money.
Here are three tips for avoiding a cruise scam when shopping for your spring getaway.

1. Beware of starting with a search engine: Scammers buy ads and use fake websites to appear at the top of results. Consider starting your search on trusted cruise line websites instead.
2. Check the source: If you receive unsolicited cruise offers, investigate the company to verify its legitimacy, ask questions and study the fine print before booking.
3. Pay with a credit card: If you’ve done your homework and are ready to make the investment, credit cards offer the strongest and most immediate fraud protection.

Be a fraud fighter! If you can spot a scam, you can stop a scam.