According to the U.S. Treasury, Americans have lost more than $16.6 billion to the online scams. Globally, it’s estimated this online scam industry takes in at least $64 billion per year.
Sixty-four billion.
While it’s easy to think, “Who falls for this?”, the reality is we’re all vulnerable.
Scammers may start by methodically winning trust on social media, posing as a financial advisor. The victim is instructed to transfer money through a website pretending to be a legitimate investment platform. Sometimes, they’ll call you on the phone, posing as a bank representative to ask for account details, PIN codes, and social security numbers.
In 2023, the president of one bank lost $47 million of the bank’s money to a scammer.
If even a seasoned financial professional can fall for this, how can anyone hope to protect themselves?
We’ve collected a few important tips for you to follow and share with friends and family.
A quick-start checklist:
- Turn on bank/credit card transaction alerts (text + email) for every purchase, ATM withdrawal, and transfer.
- Freeze your credit at all three bureaus (and ChexSystems).
- Enroll in USPS Informed Delivery® to monitor what’s coming to your mailbox.
- Set up multi-factor authentication (MFA) on email, bank, and social media.
- Create a family “safe word” (shared keyword/password) to verify emergency calls/texts.
- Add a free fraud alert to your credit file if you think your data was exposed.
- Use passkeys or strong, unique passwords (let your phone/computer’s built-in password manager store them).
- Review and lock down privacy settings on social media.
15 Easy Ways to Protect Yourself from Fraud
1) Freeze your credit (free, fast, reversible)
- A credit freeze blocks new credit lines in your name until you lift it—stopping most identity-theft loans and cards.
- Place a freeze at all three: Equifax, Experian, TransUnion (each one is separate and free).
- You’ll get a PIN or password to temporarily lift the freeze when you apply for credit.
- Also freeze ChexSystems (used for bank/credit union account openings) and, if you’ve had telecom/utility fraud, consider NCTUE (telecom/utility credit file).
Pro tip: Keep your freeze on permanently; thaw only when needed, then refreeze. It doesn’t affect existing accounts or your credit score.
2) Sign up for USPS Informed Delivery®
Mail theft is a growing path to check fraud and account takeover. Informed Delivery emails you a daily preview of incoming letter-size mail and tracks packages.
- Enroll with USPS® (free).
- If something in the preview doesn’t arrive, report it immediately and watch accounts that could be impacted (e.g., new cards, checks, tax notices).
- Consider a locking mailbox (there’s a fee, but the enrollment itself is free).
3) Create a family “safe word” for calls and texts
“Imposter” scams often use urgent calls or realistic AI voice clones pretending to be a relative, employer, or government agent.
- Choose a private keyword only close family knows (e.g., a nickname from childhood).
- Agree: No one sends money or shares codes unless the caller can provide the safe word, and you’ve called back on a known number.
- Add a second step: “Video call me first” or “Text me the safe word from your normal number.”
4) Turn on account and card alerts
- Set real-time alerts for every card-present and online transaction, ATM withdrawal, wire/Zelle/ACH transfer, password change, and new device login.
- Many banks let you set international and high-dollar alerts or temporarily lock your card in the app.
5) Use multi-factor authentication (MFA) everywhere
- Turn on MFA for email first (email is the gatekeeper to password resets), then for banking, investing, cloud storage, and social media.
- Use an authenticator app or hardware key over SMS when possible; SMS is better than nothing.
6) Use passkeys or strong, unique passwords
- Let your device’s built-in password manager create and store long, random passwords (or passkeys where supported).
- Never reuse the same password across accounts—especially email, banking, and shopping.
- If a site offers passkeys, enable them; they are designed to resist phishing.
7) Add a free fraud alert
If you believe your identity was exposed (lost wallet, data breach, missing mail), place a 1-year fraud alert on your credit file (free). Lenders must take extra steps to verify it’s really you. Victims with a police/FTC identity theft report can request a 7-year extended alert.
8) Opt out of pre-screened credit offers
- Reduce mailbox and data risk by opting out of pre-approved credit/insurance offers.
- In privacy settings on major apps and devices, limit ad tracking, disable data sharing where possible, and hide your email when offered.
9) Lock down your phone & SIM
- Set a strong device passcode (not 1234 or your birthdate – you’d be amazed at how many people actually still do this) and turn on auto-lock.
- Add a carrier account PIN to stop SIM-swap attacks (when criminals move your number to their phone).
- Never share one-time codes with anyone, not even “bank staff.” No genuine rep will ever ask.
10) Keep software updated
- Enable automatic updates on your phone, computer, browser, and router.
- Remove unused apps; fewer apps = fewer vulnerabilities.
11) Be scam-aware with payments
- Treat Zelle/Venmo/PayPal Friends & Family like cash: only pay people you know.
- If someone urges “urgent” payment, gift cards, crypto, or wire, assume it’s fraud and stop.
- For marketplace sales, meet at a police e-commerce safe zone; avoid overpayments and shipping label tricks.
12) Guard your tax and government benefits
- Create your IRS online account and Social Security “my Social Security” account before a criminal does.
- Consider an IRS IP PIN (Identity Protection PIN) to prevent tax refund fraud (free and renewed annually).
- For Medicare or other insurance, do not share numbers by phone. Call back on the number on your card.
13) Harden your email and social media
- Set MFA and check that your recovery options (phone and email) are current.
- Make profiles friends-only; remove birthdate, hometown, pet names—these are password reset clues.
- Review connected apps and remove ones you no longer use.
14) Use secure networks
- Avoid logging into banking over public Wi-Fi. If you have to, use your phone’s hotspot.
- Beware of pop-ups asking to install “security tools” on public networks. Most likely, it’s a scam.
15) Teach the household (kids & elders)
Demonstrate, don’t just tell them, the safe word rule, how to hang up and call back, and how to look for fake links (“hover to see the real URL,” check spelling, how to spot odd requests).
Post this mantra on the fridge: “Slow down, verify, and call back.”
What to do right now if you suspect fraud
- Call your bank or card issuer using the number on the back of your card (not a link in a text or email).
- Lock your card in the app and dispute unauthorized transactions.
- Change your email and bank passwords; turn on MFA everywhere.
- Freeze your credit (and consider a fraud alert).
- Report identity theft at the official FTC site (IdentityTheft.gov) for a recovery plan and letter templates.
- If mail was stolen or altered, contact the U.S. Postal Inspection Service. If it was a local crime, file a police report (often required for extended alerts).
Red flags to keep an eye out for:
- “We’re from your bank; read me the code we just sent.” (No real bank does this.)
- “Act now or be arrested/lose benefits.” (Government agencies don’t threaten you by phone.)
- “Pay with gift cards/crypto/wire.” (High-risk scam payment methods.)
- “We overpaid; refund the extra.” (Classic marketplace scam.)
- “Click this link to secure your account.” (Go to the app or type the site yourself.)
- Misspelled words or awkward grammar (an indicator of non-native speaker.)
Final word
Fraud defense isn’t about being perfect; it’s about putting friction in the criminal’s path. Free tools like credit freezes, USPS Informed Delivery, strong authentication, and a family safe word can stop most attacks before they start. Take 30 minutes this week to set up the items in the quick-start checklist. You’ll sleep better, and your money will be safer. And share these tips with your family and friends.
Just keep this figure in mind: $64 billion.