*[author: Makayla Bruno-Smith]

Data recently released by the Federal Trade Commission (FTC) shows how likely it is for a typical communication from a well-known company to be a scam in disguise. Whether it’s a fabricated email, a security pop-up with a number to call for assistance, or a notification of a cash prize, scammers have gotten more technologically savvy, and these 2023 reports show which companies are utilized the most in their schemes.

The data released included over 130,000 reports of scammers impersonating well-known companies that are frequently used by consumers. These impersonators will typically send an email, a text, or another form of communication explaining a situation where you must click on a link or urgently send money to them. Sometimes there are noticeable differences, like the company name being misspelled, and sometimes they look exactly like an email you would normally receive from the company.

How do these scammers receive payments? The top two ways for a scammer to request money is to ask for a bank transfer or an investment in cryptocurrency. Payment apps, typically through online shopping scams, are the third most-likely way to be conned out of your money. Reports show that $208,000,000 were fraudulently claimed through these scam techniques.

This information may be concerning, but there are ways that both companies and consumers can combat scammers. Individually, you can spot, avoid, and report scams using the following tips:

• Do not assume every communication from a company is a trustworthy communication, especially if they are asking you for money.
• Never respond or click links on unexpected texts or emails.
• Check the email address that sent you the communication, as it may be obvious that it is not from a trusted customer service email address.
• Avoid rushing to pay, even if the person is making it seem urgent. Check with the company by calling or emailing a contact directly from their website to see if the claim is valid.
• A source that says there is only one way to make a payment is not likely to be trustworthy. Typically, companies will accept many different forms of payment, but scammers will only accept one form.

The responsibility should not be on the consumers alone to defend themselves against scam attacks. Companies have a responsibility to protect their customers. Though they have no control over impersonators, companies can make it easier and more accessible for customers to confirm payment requests and report scams directly to them. They can also, as many companies have adopted, put warning labels on their emails notifying customers that they would not reach out unexpectedly and ask for payments. At minimum, a general “beware of scammers” informational section on communications could go a long way.

It is up to both companies and consumers to combat fraudulent payments. Be vigilant of scam attempts. Ignoring and reporting is the best way to combat imposters and keep information accessible. If you detect a scam, you can report it directly to the Federal Trade Commission website here.

*Note: Makayla Bruno-Smith drafted this post while a Summer Associate at Fox Rothschild’s Minneapolis Office this summer.

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