Understanding the Top Consumer Frauds: Lessons from 2017 and Beyond
Explore the most common consumer frauds, how they work, who they target, and practical steps to protect your money and personal information.
Every year, millions of people report losing money to scams, and the total losses have climbed into the billions of dollars according to Federal Trade Commission (FTC) data. Fraud tactics keep evolving, but many patterns repeat: the same types of lies, the same pressure to act fast, and the same dangerous ways to pay. Learning how scams work is one of the most effective ways to protect yourself and your family.
Why Looking Back at Fraud Trends Still Matters
Historical fraud data, such as reports from 2017, continues to be valuable because it shows which scam types have remained persistent and where new risks emerge over time. The categories that were among the top frauds then—such as imposter scams, debt- and money-related schemes, and online purchase fraud—still form the backbone of many modern scams, even as contact and payment methods have grown more sophisticated.
By examining these core categories, you can:
- Recognize familiar scam patterns even when the technology has changed.
- Understand which groups tend to be targeted and why.
- Spot warning signs in the way scammers contact you or ask to be paid.
Key Types of Consumer Fraud You Need to Know
Although scam labels vary from year to year, several core types of fraud consistently appear in government and financial sector reports.
1. Imposter and Identity-Based Scams
Imposter scams occur when a con artist pretends to be someone you trust—a government agency, a bank, a charity, a business, a technical support representative, or even a friend or relative. Their main goal is to get money or personal data by abusing that trust.
- Government imposters: Claim to be from tax authorities, law enforcement, immigration, or other agencies, often using threats of arrest, deportation, or fines if you do not pay immediately.
- Business imposters: Pose as your bank, a delivery company, a utility, or a well-known technology firm. They may call, text, or email you with fake security alerts or account problems.
- Family and friend imposters: Sometimes called “grandparent scams,” these involve someone pretending to be a loved one in trouble, asking for urgent financial help.
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These schemes often overlap with identity theft, where stolen personal information is used to open accounts, make purchases, or take over existing accounts.
2. Financial Opportunity and Investment Frauds
Promises of unusually high returns, guaranteed profits, or “risk-free” investments are at the core of many financial frauds. Recent data show that investment scams are among the most costly types of fraud in terms of total dollars lost.
- False investment platforms: Fraudsters set up fake trading or cryptocurrency platforms, often showing fabricated account balances or profits to lure higher deposits.
- Recovery and refund scams: After a person has been scammed once, they may be targeted again by those promising to help recover the lost funds—for another fee.
- Business opportunity scams: Advertise work-from-home or franchise offers that require upfront fees in exchange for little or no real opportunity.
3. Shopping and Online Purchase Scams
Fraud involving purchases—particularly online—has grown substantially as more consumers shop on the internet. The FTC and other regulators have repeatedly identified online shopping scams as a major contributor to reported fraud losses.
- Fake online stores: Entire websites or social media shops that look legitimate but either deliver counterfeit goods or nothing at all.
- Marketplace fraud: Listings on online marketplaces or social networks promising popular or scarce products at steep discounts, with sellers disappearing after payment.
- Non-delivery and non-payment: Either the buyer pays and never receives the item, or the seller ships an item and never gets paid.
4. Debt-Related, Credit, and Collection Schemes
Scammers frequently exploit people’s worries about debt and credit. Official agencies warn about fake collectors, bogus debt relief, and abusive practices that may be illegal.
- Debt collection fraud: Criminals pose as collectors, claiming you owe money and threatening lawsuits, wage garnishment, or arrest unless you pay immediately using nonstandard methods.
- Credit repair and debt relief scams: Advertise quick fixes for credit problems or offer to settle debts for a fraction of what you owe, often demanding large upfront fees but doing little or nothing in return.
- Loan scams: Offer guaranteed loans or lines of credit regardless of credit history, but require advance payment for processing or insurance.
5. Romance and Relationship Frauds
Romance scams exploit emotional vulnerability rather than greed. The FTC and central bank research have highlighted the high dollar losses from romance-based schemes, particularly when they are tied to fake investment opportunities.
- Scammers create convincing profiles on dating sites or social media.
- They invest weeks or months in building trust and a sense of intimacy.
- After a bond is formed, they invent emergencies, medical needs, travel troubles, or “inside” investment opportunities to request money.
- Victims may send funds repeatedly, believing they are helping a partner or securing their future together.
How Scammers Reach You: Evolving Contact Methods
The ways that scammers initiate contact have changed significantly. Research drawing on FTC data shows that contact through websites, social media, and mobile apps increasingly contributes to higher fraud losses, even though the number of incidents has not grown as quickly.
| Contact Method | Common Scam Types | Typical Warning Signs |
|---|---|---|
| Phone calls (live or robocalls) | Government imposters, tech support, fake debt collection, bank imposters | Threats of arrest, pressure to stay on the line, requests for immediate payment or access codes |
| Text messages (SMS) and messaging apps | Package delivery scams, bank alerts, account verification, phishing links | Links to unknown sites, urgent security warnings, grammar errors, unfamiliar sender IDs |
| Phishing, business imposters, fake invoices, refund scams | Mismatched email addresses, requests to bypass normal procedures, attachments from unknown sources | |
| Social media and online ads | Investment scams, romance scams, fake stores, job offers | Too-good-to-be-true deals, new accounts with few followers, requests to move conversations off-platform |
| Websites and pop-ups | Tech support scams, fake login pages, bogus sweepstakes | Alarming pop-up warnings, prompts to install software, URLs that mimic real brands |
Risky Ways to Pay: A Major Red Flag
Regardless of the story a scammer tells, the payment method they demand is often the clearest sign something is wrong. Regulators emphasize that legitimate businesses and government agencies do not require payment using obscure or irreversible methods.
Payment Methods Frequently Used in Scams
- Cryptocurrencies: Many investment and romance scams now steer victims toward digital asset payments, which are hard to reverse and easy to transfer globally.
- Peer-to-peer payment apps: Services designed for quick transfers between friends can also send irreversible funds to fraudsters.
- Gift cards and prepaid cards: Common in government imposter, tech support, and romance scams; requestors often ask for card numbers and PINs over the phone.
- Wire transfers and money orders: Once sent, these funds are typically impossible to retrieve, making them popular with scammers worldwide.
- Checks and mail theft: Criminals may steal and alter checks or use check information to raid bank accounts, a risk highlighted by banking regulators.
If someone you do not know personally insists on one of these methods, or tries to keep you from using safer options (such as a credit card with dispute rights), treat it as a strong signal to stop and verify independently.
Who Is Most at Risk? Age and Vulnerability
Fraud affects all age groups, but different generations tend to be targeted in different ways. Analyses based on FTC reporting show that younger adults report losing money to scams more often than older adults, especially when fraud begins on social media or websites. Older adults, in contrast, may experience higher median losses per incident, particularly in areas like elder financial exploitation.
Common patterns include:
- Younger adults (20s and 30s): More likely to encounter fake online stores, job scams, and investment or crypto schemes on social media and apps.
- Middle-aged consumers: Often targeted for debt relief, credit repair, business opportunity scams, and sophisticated investment pitches.
- Older adults: At higher risk for imposter scams (especially phone-based), tech support fraud, romance scams, and abuse by caregivers or trusted individuals.
Practical Steps to Reduce Your Fraud Risk
While no one can eliminate all risk, following some core practices can significantly reduce your chances of losing money to scams. Many of these steps are recommended consistently by government agencies and financial regulators.
1. Slow Down and Verify Independently
- End the conversation if you feel pressured to act immediately.
- Use a phone number or website you find yourself, not the one given by the caller, email, or text.
- Contact your bank, card issuer, or the named organization using official channels to confirm the story.
2. Guard Personal and Financial Information
- Be cautious about sharing Social Security numbers, account credentials, or one-time passcodes over phone or text.
- Use strong, unique passwords and enable multi-factor authentication wherever possible.
- Monitor your bank and card statements regularly for unfamiliar transactions, and place fraud alerts or credit freezes if you suspect identity theft.
3. Choose Safer Ways to Pay
- Whenever possible, pay with methods that offer dispute rights, such as credit cards.
- Avoid sending money via cryptocurrency, wire transfer, or gift cards to anyone you do not know well and trust.
- If you are told to change your usual payment habits “for security reasons,” treat that as a serious warning sign.
4. Stay Informed About Emerging Scam Trends
- Check official consumer advice pages from regulators for updated scam alerts and data.
- Talk openly with family members, especially older relatives or younger adults entering the workforce, about current fraud risks.
- Review the security and privacy settings on social media and messaging apps to limit who can contact you or see your personal details.
5. Report Fraud and Suspicious Activity
- Report scams and attempted fraud to national consumer protection agencies and your local law enforcement.
- Notify your bank or card issuer immediately if you have made a payment you suspect was fraudulent.
- Reporting helps authorities identify patterns, shut down active schemes, and improve educational resources for others.
Frequently Asked Questions (FAQs)
Q1: What are the clearest warning signs that a call or message is a scam?
Key warning signs include urgent pressure to act immediately, threats of arrest or legal action, requests for payment via cryptocurrency, gift cards, or wire transfer, and instructions not to tell anyone else about the contact. Messages that ask you to share one-time passcodes or login credentials are also red flags.
Q2: If someone says they are from the government or my bank, how can I check?
Hang up or ignore the message, then find the official contact information from a statement, the back of your card, or a trusted government website. Call or visit directly using that information—not any number or link supplied in the original message.
Q3: Are social media scams really that common?
Yes. Research using FTC data shows that contact through social media, websites, and mobile apps plays a growing role in fraud losses, especially for younger adults who spend more time on these platforms. Fake ads, bogus investment tips, and romance approaches are particularly common.
Q4: What should I do if I already sent money to a scammer?
Act quickly. Contact your bank, card issuer, or payment app provider to report the transaction and ask if it can be reversed or disputed. Then file reports with appropriate consumer protection authorities and local law enforcement. Even if you cannot recover the money, reporting can help prevent further harm.
Q5: How can older family members be better protected from fraud?
Regular conversations about common scams, especially phone-based imposter scams and tech support fraud, can help. Encourage them to let unknown calls go to voicemail, to verify emergencies directly with family, and to consult a trusted person before sending money in response to unexpected requests.
References
- The Latest Scams You Need to Be Aware of in 2025 — Experian. 2025-01-08. https://www.experian.com/blogs/ask-experian/the-latest-scams-you-need-to-aware-of/
- The Future of Financial Fraud: The Sophistication of Common Scams — Federal Reserve Bank of Kansas City. 2025-09-18. https://www.kansascityfed.org/ten/the-future-of-financial-fraud-the-sophistication-of-common-scams/
- Popular Fraud Schemes to Watch Out for in 2026 — SouthState Bank. 2025-01-02. https://www.southstatebank.com/personal/stories-and-insights/rising-fraud-trends
- Stay Ahead of Scammers in 2025 — Federal Trade Commission, Consumer Advice. 2024-12-10. https://consumer.ftc.gov/consumer-alerts/2024/12/stay-ahead-scammers-2025
- Safe Money – Guarding Against Financial Frauds & Scams — Office of the Comptroller of the Currency. 2025-01-17. https://www.occ.gov/publications-and-resources/publications/safe-money/index-safe-money.html
- Fraud and Scams — Consumer Financial Protection Bureau. 2024-11-15. https://www.consumerfinance.gov/consumer-tools/fraud/
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