Most people are aware they shouldn't send money to a stranger, which is why fraudsters often take a different tack: pretending to be a person or company you're familiar with. To stay vigilant and avoid becoming a victim, it helps to know exactly how these imposter scams work.
The scammers' goal is to get you to let your guard down, says Kenneth Conner, vice president of scam policy and communications at Citi. "They use believable scenarios when impersonating someone to make you feel more at ease doing something you shouldn't, like buying gift cards and providing the information on the cards to a third party or sending a deposit to 'yourself.'"
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/imposter-scams_body-2_EC5415-001.jpg" alt="A shadowy figure makes a telephone call">
Some scammers have even been using artificial intelligence to mimic friends' or family members' voices, making it trickier to tell if the outreach is fake. (Online tools can turn an audio sample into a voice that can "say" what the scammers type.)
What's more, imposter scams are currently the number-one most reported type of scam, according to the Federal Trade Commission, and losses are mounting. People reported losing $2.7 billion to imposters in 2023.
To help you protect your finances and avoid becoming a victim, here's what you need to know about three common imposter scams, including advice on how to steer clear of them.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/imposter-scams_body-1_1210332575.jpg" alt="A woman looks suspiciously at a message on her phone">
<h2>Bank imposter scams</h2>
How they work: A fraudster pretending to be a bank agent contacts you in one of the following ways.
1. Texts you from a spoofed number that appears to be a legitimate number for your bank, advising you of suspicious account activity. Once you reply, the scammer either calls you or provides a number for you to call.
2. Emails you from a spoofed email address by modifying the "display name" so it appears to be a legitimate name or address for your bank, advising you of suspicious account activity. Once you reply, the scammer either calls you or provides a number for you to call. (Alternately, the email may contain a link to a spoofed website with a fake chat feature run by the scammer.)
3. Calls you directly to advise of suspicious activity on your account.
Typically, while in contact with you, the scammer is also interacting with the bank, either through the mobile application or on the phone with a bank representative. The purpose is to either conduct a financial transaction on your account and have you authenticate it or to convince you to conduct the financial transaction under false pretenses.
The scammer might say your funds are at risk due to fraudulent activity, for example, and that they need you to move them to "protect" them, but what's really happening is you are transferring the funds to a third-party account they control. Some fraudsters will even ask you for the one-time password (OTP) just delivered to your phone or email; with that, they can change the password and provide you with the new one for the online banking session. Their goal is that, by showing you they have the ability to reset your password, they'll make you think the scam is legitimate.
What you can do: Be cautious. A real bank will never call, email, text or send direct messages on social media to demand money or information, and if they are calling you directly, they will also never require you to provide an OTP code. Never assume outreach like this is legitimate just because the name or number that comes up looks official; scammers can manipulate these. If you're asked to send payments or personal information, it's best to verify the request directly with the company through a confirmed communication channel &mdash; for example, the number or email address on the back of your credit or debit card, on the bank's official site or on your account statement.
<h2>Fake order-confirmation scams</h2>
How they work: These schemes entail a fraudster sending you a text or email that appears to be from a major company you've likely used or shopped from, like Amazon, PayPal or Microsoft. The note confirms your (fictitious) order and instructs you to contact customer care if you did not place it. Once you do this, you receive a message indicating a fraud agent from your bank will contact you shortly. You then receive a call from this "agent," who tells you someone is trying to make payments from your peer-to-peer payment account. They tell you the only way to resolve this is to send money back to your account to cancel the pending transaction. Meanwhile, the scammer is the one who will receive the money because they've linked their account to your credentials.
What you can do: If you receive an unexpected delivery notice, be suspicious. Don't click on the link or call back. The link could install malware that can pull personal information or take you to a spoofed website with a fake chat feature run by the scammer, and the number could lead to a fake operator asking for your credit card number or other account details, or instructing you to send funds. Instead, check the website for the number or email address of the delivery service or seller so you can sort this out directly.
<h2>Government imposter scams</h2>
How they work: A fraudster pretends to be a government agency staffer or law enforcement officer advising you of a past-due balance for a warrant, pending arrest or other police activity. By text, email or phone call, the "officer" instructs you to pay immediately via wire, peer-to-peer payment app or gift card to resolve the issue.
What you can do: Be wary of any correspondence that doesn't provide valid contact information or urges you to act immediately, and never click on unknown links because they could install malware or lead to a spoofed website with a scammer-run chat feature. Also keep in mind that government entities will never require a specific form of payment. You can check whether this notice is valid by using the phone number or email address listed on the agency's official website instead.

Imposter Scams Are on the Rise — Here's How to Avoid 3 Common Ones

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Scams targeting older Americans are becoming more common &mdash; and show no signs of stopping.
These scams might be in the form of a call or an email about a too-good-to-be true business deal, a grandchild in danger or an alluring romantic prospect.
According to 2021 data from the FBI's Internet Crime Complaint Center, 92,000 Americans over the age of 60 reported losses of $1.7 billion due to fraud in 2021 &mdash; a 74% spike from 2020.
"Scammers are actively targeting elderly Americans because they believe them to be more trusting, less confrontational and thus, more susceptible to fraud," says Kenneth Conner, vice president, scam policy and communications, Citi. "These cyber criminals use psychology and other tactics to get them to send funds."
If you have older loved ones that you believe to be vulnerable, the good news is there are ways you can help them protect their accounts and personal information from fraudsters. It starts with awareness.
Below are four scams commonly aimed at older Americans, and how to respond when that suspicious call, text or email arrives.
<h2>1. Phishing scams</h2>
How they work:&nbsp;Cyber criminals frequently impersonate legitimate companies or government agencies (such as the IRS or Social Security Administration) in the hopes of getting someone to click a link, download a file or share sensitive information.
"The reason these scams are so effective is because they look real, especially to an older population who might not be as tech-savvy to recognize the malicious attack," says Lisa Plaggemier, executive director of the National Cybersecurity Alliance (NCA).
What to do:&nbsp;Sit down with your loved ones and explain how to recognize if an email is legitimate. According to Plaggemier, telltale signs of fraud include: misspelled words; variations in the company name or email address; a poorly written message; urgent demands for personal information or money; and suspicious attachments.
Also, government organizations will not reach out over the phone. "They will write via mail on their official letterhead if there is really an issue," says Susan Zaar, senior analyst at Kuma, LLC, a global privacy and security consulting company.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/body-1_protecting-elderly_109374364.jpg" alt="A man reviews documents in front of his computer screen">
<h2>2. Bank impersonation scams</h2>
How they work: The increase in digital banking during the pandemic led to a surge in bank impersonators. These scammers pretend to be from one's bank, hoping to acquire valuable, personal information. They might ask the account holder to move their money to "protect it." The scammer may reach out via phone call, text or email.
According to Conner, there has been a notable uptick in bank impersonation via texts, so it's important to be extra cautious when messages from unknown senders.
What to do: Let vulnerable adults in your life know that they should only contact their bank via a verified phone number from the bank, recommends Conner. This number is usually listed on the back of a debit or credit card. Advise them to be wary of caller ID. "Scammers can manipulate how a number comes through to you," he says. Help them set up a spam call blocker with a spam protector app.
If there are any questions, help them call their bank directly. Senior citizens should also consider granting account access to a trusted loved one who can help them keep an eye on financial transactions.
<h2>3. Tech support scams</h2>
How they work: Consumers may be lured in by a tech support scam when a cyber criminal reaches out and assures them that they can protect their computer against viruses. The truth is, they peddle bogus services and will try to steal a credit card number.
These scammers might install malware, which gives them access to everything on the computer. Scammers attempt this with an unsolicited call or email from tech support, or a random pop-up that appears on users' screens.
What to do: Talk about the perils of clicking on unsolicited emails or pop-up windows. Advise your loved ones not to click on these pop-ups and not to open suspicious emails. They should never provide access to their computer to someone who randomly contacts them. Help them set up a pop-up blocker, which can stop pop-ups from appearing on their screen entirely.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/body-2_protecting-elderly_1304075100.jpg" alt="A woman reviews documents in front of her computer screen">
<h2>4. Romance or family-member-in-trouble scams</h2>
How they work: In a "sweetheart scam" the fraudster reaches out via phone or email or through an online dating app. They spend time getting to know their potential victim, making it seem as though they share the same interests. The victims are led to believe that they have found their perfect match.
But it's too good to be true. Once trust is established, the scammer will look for a way to convince the victim to send money. Maybe a personal emergency has come up, or they want to visit in person and need funds for a flight.
"Many older Americans experience isolation and loneliness in a normal year and seek out companionship through different methods," says Conner. "During COVID-19, this isolation and loneliness was extremely intensified and led to some individuals letting down their guard."
A variation of this scam is when a criminal impersonates a family member in crisis and requests the immediate transfer of funds to help resolve the situation. Here, too, the scammers are appealing to the emotions of their victims. These scammers can be very convincing. They have often done research to better impersonate family members or close friends, and build trust. Always verify an unusual request by reaching out to your loved ones or acquaintances independently. Always be wary of requests for cash, gift cards or funds transfers.
What to do:&nbsp;Advise your older family member or friend to decline online or in-app friend requests from people they don&rsquo;t know. And they should never, under any circumstances, share personal information or money with someone they have not met in real life. "Recognize the red flags to understand what romance scams are," Conner says. "Have them speak to their friends and family frequently about any new potential partners."
"Scammers are experts at their trades,&rdquo; says Conner. "Knowing when to pause and ask for help is critical to stopping them.&rdquo; Remind your older relative or friend that a trustworthy company or person will not pressure them to respond right away.
Try some role playing with the person you wish to protect by practicing how to cut off a call or other correspondence with a scammer. Create a simple script and keep a copy of it next to your loved one's computer, taped to the back of their phone or on a card in their bag or pocket. It can be as simple as: &ldquo;I am ending this conversation at this point, and I won&rsquo;t be responding to any additional contacts. I wish you a good day.&rdquo;
If a request seems unusual or suspicious, there is a chance it could be a scam &mdash; so tell the seniors or other vulnerable individuals in your life that they should trust their instincts. If they need help with any of these protective measures, let them know that they can always ask you to brainstorm solutions for any suspicious calls or communications that come their way.
<a href="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/tagged-Protect%20Yourself%20From%20Scams%20-1-.pdf" data-link-source="tiny">Print this list</a> to help the seniors in your life respond when a suspicious call, text or email arrives. Have them add important numbers and keep in a handy spot near their computer or phone.
<blockquote>
Advise your older family member or friend to decline online or in-app friend requests from people they don&rsquo;t know.
</blockquote>
<img class="hero_listicle" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/ElderlyScamsIllustration_110822.png" alt="Illustrations on how to protect yourself from scams">
<h2>Protect yourself from scams</h2>
Here are some tips to help avoid email scams and phone fraudsters. Print them out and keep in a handy spot near your computer or phone.
<ol>
<li>Unknown caller: Let calls from unknown numbers go to voicemail. If you answer and feel pressured, nervous or confused, end the call immediately. Call a family member or friend for advice &mdash; even if the caller says not to.</li>
<li>Review phone contacts: Designate which contacts are your 'favorites' (family, friends, doctor, pharmacy), and set up your phone so that all other contacts go to voicemail.</li>
<li>Resist the click: Avoid clicking on unusual pop-up windows on your computer or phone. Set up a pop-up blocker to stop scam messages from appearing.</li>
<li>If fraud happens, report it: If you've been targeted by a scammer, inform your bank or credit card company right away. Then, contact the FTC at ReportFraud.gov and Adult Protective Services at eldercare.acl.gov</li>
<li>Protect those passwords: Create strong, unique passwords to secure data and information. Use a password manager to generate strong passwords. Always lock devices with a password.</li>
<li>Recognize the red flags: Scammers often play on their target's emotions and provoke fear. They will ask for money or personal information and insist that you act now. They may ask you not to tell anyone.</li>
<li>Set up two-factor authentication: Take an extra step to protect data and set up authentication via an app with your financial or credit card institutions.</li>
<li>When in doubt, ask for help: If you think you're being scammed, end all communication with the suspected scammer immediately and call a trusted friend or relative. Then, contact your bank so they can help you secure your account.</li>
</ol>

How to Help Seniors Avoid Being the Victims of Fraud

5Global fraud is on the rise, and young adults are particularly vulnerable &mdash; but knowing what to look out for can help keep them safe.
People in their 20s may seem more technologically savvy compared with older generations, but as it turns out, this age group also reports losing money to scams at significantly higher rates. In a recent Federal Trade Commission study, for example, individuals ages 20 to 29 accounted for 44% of fraud reports compared with just 2% from people ages 70 to 79.
College students are at risk for a few reasons, says Michael Steinbach, head of financial crime and fraud prevention at Citi. "Often, this is their first experience living on their own and making financial decisions without help from parents or guardians, which can make them targets of criminals," he says. On top of that, "many in this age group have been conditioned to listen to authority figures like parents, teachers and coaches, so when they're contacted by a fraudster posing as, say, a member of law enforcement or a bill collector, they may be inclined to follow instructions unquestioningly."
And while it may seem counterintuitive, their comfort level with technology is another factor, says Steinbach. Today's college students have grown up with smart phones and other digital devices playing a part in practically all aspects of their lives. "Buying and selling goods or services and transferring money has always been done with a few quick clicks or swipes," he says. Because digital functionality is so ingrained, college students can be less vigilant than other digital users. "They may tend to ignore basic security protocols, finding passwords 'annoying' or looking at free, public Wi-Fi as a 'score,'" says Steinbach, rather than something to be wary of.
All of that can make them more prone to falling for scams, and especially those targeted to students. To help the college kids in your life protect their accounts, share this advice on how to spot &mdash; and handle &mdash; seven common schemes.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/LAM_Fraud_BodyImage_1000x667-A.jpg" alt="In his dormitory, a male student is shown texting on his mobile device">
<h2>1. Apartment or room rental scams</h2>
How they work: Preying on students in a time crunch to find a place to live, these schemes start with an offer of a room or apartment vacancy. Scammers posing as the management company or individual renting the property tell the student they must wire funds or use common peer-to-peer (P2P) payment methods to make a deposit upfront to secure the place, even before seeing it.
What to do: Research the address online and don't give in to pressure to pay a deposit upfront before touring it and getting a lease signed by you and the property manager, says Steinbach. If you can't see the place yourself, ask someone you trust to check it out for you to confirm that it's for rent and matches up with what is advertised. Another precaution to take: "Before providing personal information such as your current address or Social Security number, make sure you verify the identity of the individual requesting it," he says. "If the deal seems too good to be true, it probably is."
<h2>2. Sublet scams</h2>
How they work: Scammers find college students subletting a room and pose as a prospective applicant. When they send in a check for the deposit, they make it out for a much larger amount than requested and then ask the student to refund the difference via a P2P payment method. The check later bounces.
What to do: Decline sending back a portion of the check. Overpayment scams are prevalent, says Steinbach, so if this scenario comes up, your best bet is to return the check and request a new one for the correct amount.
<h2>3. Scholarship or financial aid scams</h2>
How they work: Scammers send an official-sounding award of a scholarship or other financial aid via phone, mail or email. The notice includes instructions to provide some personal information, such as your credit card number "to confirm eligibility," or pay a deposit or application fee to proceed.
What to do: Research any scholarship offers online to ensure they're legitimate, and complete aid applications only through FAFSA (the Free Application for Federal Student Aid form).
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/LAM_Fraud_BodyImage_1000x667-D.jpg" alt="A group of students entering a lecture hall and taking their seats.">
<h2>4. Unpaid tuition or school fee scams</h2>
How they work: The student receives a seemingly legitimate phone call or notice of unpaid tuition or other outstanding fees that, if not remedied immediately or by a certain date, will impact their enrollment.
What to do: Before paying any invoice, verify it by calling or visiting the university's financial office and/or logging into an official, password-protected online student account, says Steinbach. (For added oversight, parents can typically request access to these accounts through the student, he notes.) Keep in mind that the school would typically send a paper bill before requiring immediate payment.
<h2>5. Textbook scams</h2>
How they work: Knowing that many students try to cut costs on expensive required college textbooks, scammers set up fake websites offering deeply discounted books or used books. However, once a student pays, they never receive the books.
What to do: Be wary of textbook deals that seem too good to be true. The safest way to purchase both new and used books is through official university bookstores.
<h2>6. Credit card scams</h2>
How they work: In some cases, the student receives a fake credit card offer (by phone, email or text) that prompts them to provide personal information such as their Social Security number. In other cases, the offer the student receives is for an actual credit card but the language is misleading, and it includes unfavorable terms, fees or interest rates.
What to do: Be wary of generic emails that include unspecific information, and before filling out an application for an unsolicited credit card offer, contact the bank or credit card issuer directly to verify the terms. The best way to ensure you're making a good decision on a credit card, says Steinbach, is to go through your current bank or do your own online research for the card that best fits your needs.
<h2>7. Online income scams</h2>
How they work: Scammers know college students need cash, so with this type of scheme, they offer ways to make a quick buck (as an assistant or dog walker, for example). The catch is that the job posters either ask for money upfront or mail checks for their work and request a portion to be paid back through a P2P method. These offers may also be a veiled way for fraudsters to collect personal and banking information.
What to do: Before accepting a job, conduct online research on the company, including searching for the company's name plus words like "scam" or "complaint." Decline any offers that require paying money upfront.
Beyond these potential pitfalls, fraudsters can take things even further, offering students money to deposit bad checks or enticing them to set up bank accounts to transfer funds, as unwitting "money mules." It's important to understand that in these scenarios, the students are no longer the victims but are now complicit in committing a felony; they're also at risk of negative credit ratings and the inability to open a bank account in the future.
Overall, one of the most effective ways to protect your college student is to communicate this information clearly and, ideally, in advance of their freshman year, adds Steinbach. Talking with them about behaviors that make their age group susceptible and sharing potential signs of common scams can keep them on guard &mdash; and keep their finances safe.
For up-to-date information on the latest scams and expert tips to protect your finances, visit <a href="https://citicards.citi.com/cbol/fraudprevention/default.htm?BTData=EFe.B.gAB4f.B.B0!.SEOz.eGI.lYg.xG!.Bj.SX.0f.E&amp;ProspectID=B94C456AA40A4CBCB2CEAA7F7CB56CD5" data-link-source="tiny">citi.com/fraudprevention</a>.

Have a College Kid? These Quick Tips Can Help Them Avoid Student Scams.

You may know better than to send money off to strangers, and perhaps even how to spot a phishing email from a mile away, but there&rsquo;s a new threat to your hard-earned cash that&rsquo;s likely more difficult to detect. Here&rsquo;s what you need to know about the rise in investment scams and how you can avoid becoming the latest victim.&nbsp;&nbsp;
&ldquo;Hey, how&rsquo;s your day going?&rdquo; is how it begins. Even if it&rsquo;s coming from a number you don&rsquo;t recognize, a breezy message like this might feel innocuous &ndash; but it could be the start of a criminal scheme that ultimately costs you thousands. According to&nbsp;<a href="https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3Report.pdf" target="_blank" rel="noopener" data-link-source="tiny">the FBI&rsquo;s 2022 Internet Crime Report</a>, investment scams now top the list of digital threats, with losses totaling $3.3 billion (a 127% increase over the previous year). &nbsp; &nbsp; Unlike some other scams, these so-called &ldquo;pig butchering&rdquo; schemes, in which the attacker cold contacts their target and builds up trust over time before luring them into a &ldquo;can&rsquo;t-miss investment opportunity,&rdquo; can be surprisingly easy to fall for. The good news is you can avoid getting caught in that costly trap if you know what to look for.
<h2>How it works</h2>
If you respond to that initial reach-out over text, email or social media, the scammer will work to establish a rapport. This could take days, weeks or even months, and will feel much like building any new friendship, says Kenneth Conner, vice president of scam policy and communications at Citi. &nbsp; &nbsp; &ldquo;In the next phase the scammer might talk up their financial successes and mention a promising investment opportunity they&rsquo;re letting you in on,&rdquo; he adds. &ldquo;Or they&rsquo;ll offer to give you guidance on how to trade cryptocurrencies or foreign currencies.&rdquo;&nbsp; &nbsp; The tricky aspect is that it will entail investing through a realistic-looking trading platform. &ldquo;Initially, these customers can see the returns,&rdquo; Conner explains. &ldquo;For example, they can log into a site and see that the $100,000 I put in there a month ago has now grown to $160,000.&rdquo;&nbsp; &nbsp; The other shoe doesn&rsquo;t drop until you attempt to withdraw your funds. You might be told you need to pay taxes on your cash (&ldquo;so you&rsquo;re even giving above and beyond the original investment,&rdquo; says Conner), and at that point, the trading platform you&rsquo;ve been using to track your funds disappears. &ldquo;You have no access to it, the money is gone, and there's no way to reach your investment contact,&rdquo; he says.
<img src="https://www.lifeandmoney.citi.com/rcs/v1/media/lifeandmoney/akpublic/storage/retrieveMediaFile/65bab7acb4115207ab4f065f" alt="investment_scams_body_1315489149.jpg/">
<h2>What to look out for</h2>
Does your contact have licensing through a reputable firm? Are they professional when they interact with you? Are they pressuring you to make quick decisions? &ldquo;As a general rule, these &lsquo;can&rsquo;t-miss,&rsquo; cash investment opportunities don&rsquo;t exist, Conner warns. Investing can be a good way to build wealth because, when you purchase an investment &mdash; a stock or bond, for example &mdash; the hope is that the value will increase over time and provide you with larger returns than you&rsquo;d get from a traditional savings account. But there will always be at least&nbsp;some risk.&nbsp;&nbsp;
&ldquo;There are some investments that do have guaranteed returns, but it's five or ten years down the line,&rdquo; he says. What these schemes tend to promise is guaranteed, immediate, sizable returns. But, as Conner notes, &ldquo;There&rsquo;s nothing out there that has that quick of a return&nbsp;and is guaranteed.&rdquo;&nbsp;
<h2>What to do</h2>
Be vigilant and ask a lot of questions, Conner suggests. When presented with a seemingly lucrative opportunity, keep an eye out for key risk indicators: &ldquo;Did you just meet somebody on social media? Did they befriend you? Keep in mind it could take months of chatting and building up a relationship until the scammer is like, &lsquo;You trust me. We've been talking for six months, and now here's this good opportunity,&rsquo;&rdquo; he says. &nbsp; &nbsp; If a recent connection offers you investment tips and suggests you buy in with large sums of money, but the interaction feels off, try turning to a trusted friend or relative. &ldquo;That's one thing we find is a very good deterrent because it gets discussions going,&rdquo; says Conner, along the lines of: &ldquo;&rsquo;Hey, I had this individual call with this type of scenario. What do you think?&rsquo;&rdquo;&nbsp;
As with any investment opportunity, it&rsquo;s also crucial to do as much research as possible, he adds. If you&rsquo;re looking to invest in a particular company, for instance, &ldquo;validate that the company actually exists, that they have a physical footprint,&rdquo; he suggests. And if there are ways to invest directly through a more legitimate source (a licensed stockbroker, for example, or a security that&rsquo;s registered with the SEC), go that route instead.&nbsp;&nbsp;
If you think you may be a victim, contact your bank immediately and explain you&rsquo;ve made a series of fraudulent transactions. You can also file a case with the FBI and file a report with the Federal Trade Commission. The key is to act the moment you become concerned, notes Conner, because if you catch this in time, &ldquo;there is some level of recourse.&nbsp;
&nbsp;

This advice can help you spot the signs of investment scams and keep your money safe.