What to do if You've Been the Victim of a Financial Scam
Published: 2024-04-30 00:00:00
Scammers are constantly finding new ways to steal your money, from blackmail to romance scams to selling nonexistent items. In 2022 alone, United States consumers reported more than 2.4 million scams totaling $8.8 billion to the Federal Trade Commission (FTC). The millions of people who have been impacted by a scam wonder: what can you do if you got scammed and lost money? If you've been scammed out of money, it is vitally important to act fast. It is a challenging situation, but there are concrete steps you can take.
Stay calm and gather information. The first and most important step is to remain calm. Panic can cloud your judgment, making it difficult to respond effectively. Take a deep breath and focus on gathering information about the scam. Whether it's an email, text, or social media message you received from a scammer, or your bank statement with fraudulent charges highlighted, print the information and make copies of everything. Do not delete anything from the scammer.
Stop contact with the scammer. Hang up the phone and do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Block their phone number, email address, or any other means of contact they may have used. Also beware of additional scammers who may contact you claiming they can help you get your lost money back.
Secure your finances. Report potentially compromised bank account, credit card, or debit card information to your financial institution(s) immediately. Request a new account number and debit or credit card and ask if they are able to cancel or reverse fraudulent transactions. Then contact the three major credit bureaus (Equifax, Experian, and TransUnion). They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report.
Check your computer. If your computer was accessed or otherwise affected by a scam, check to make sure that your antivirus security is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company.
Change your passwords. Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure you choose strong passwords and don't use the same password for multiple logins. See if two factor authentication is available for your accounts, from social media to your banking app.
Report the scam. Contact your local law enforcement office, the Federal Trade Commission (FTC), the Internet Crime Complaint Center (IC3), and the Better Business Bureau (BBB). In 2022, the FTC was able to issue more than $392 million in refunds to people who lost money to illegal business practices. If someone is using your personal information to open new accounts, make purchases, or get a tax refund, report it at identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation.
To prevent falling for a scam in the future:
Stay updated on the latest scams and fraud techniques.
Be skeptical of unsolicited emails, messages, or phone calls, especially if they request personal or financial information.
Be cautious about sharing personal information online, especially on social media. Scammers often use this information to build trust and tailor their approach.
Use reputable antivirus and anti-malware software on your devices.
When shopping online, only use reputable websites and sellers. Check reviews and ratings to ensure legitimacy.
Regularly review your bank statements, credit reports, and online accounts for any unauthorized or suspicious activity.
If you have been the victim of a scam, don't be embarrassed. Use the experience as an opportunity to educate yourself about common scams and how to recognize them. Share your story with friends and family to raise awareness and prevent others from falling victim to similar schemes.
The content in this article provides general consumer information. It is not legal advice, financial advice, or regulatory guidance.