On this week's "Protecting Your Money," Randy Hutchinson, President and CEO of the Better Business Bureau of the Mid-South, discusses the rising threat of impersonation scams, which have become the most frequently reported type of fraud to the Federal Trade Commission (FTC).
Hutchinson explains that in 2024, the FTC received approximately 850,000 reports of impersonation scams, with reported losses approaching $3 billion. Since many victims do not file a report, the actual financial impact is likely much higher. These scams frequently involve criminals posing as government agencies, banks, online retailers like Amazon, or even distressed loved ones. Their objective is to steal money or personal information.
He warns that most scammers now reach consumers through text messages or emails, often demanding payment via hard-to-trace methods such as bank transfers or cryptocurrency. With advancements in artificial intelligence, these fraudulent messages and calls are becoming more convincing and harder to detect.
Hutchinson advises listeners to take their time and verify information before responding. Never send money or share personal information with anyone who contacts you unexpectedly. If you're uncertain about the legitimacy of a message or call, independently look up the organization's or person's contact information and reach out to them directly. He also reminds consumers not to rely solely on caller ID, as it can be easily spoofed. Additionally, avoid clicking on links in unsolicited emails, texts, or social media messages.
To check out a business, file a complaint, read customer reviews, or learning more about common scams, visit bbb.org or call 800-222-8754.