Here at the Blog, we write about online scams and internet fraud with depressing regularity – and yet the hits just keep on coming, as the saying goes. Fraud is by all accounts a growth industry, up 25 percent from 2023 to 2024, and it’s a sure bet that trend line is continuing. The tally is over 2.6 million victims per year and rising – and those are just the ones officials know about. 

But when it comes to fraud, we hope familiarity doesn’t breed apathy. Case in point is this article we just discovered from Kiplinger, in which reporter David Rodeck does more than merely recite a litany of frightening statistics. Instead, he arms us with a few specific actions we can – and must – take right away to elevate our response to the threat. We confess that Rodeck’s practical suggestions are causing us to rethink how we do things in the digital world. 

Let’s run through his ideas on how to fortify our online profile against the bad actors. As you read, perhaps Rodeck’s words will trigger a fresh resolve to guard your digital life more zealously. 

Cyberfraud Can be Triggered in an Instant 

“A breach of online security happens in an instant,” Rodeck begins, chillingly. “A misclicked link, a reply to a stranger’s message or a purchase on the wrong site. Uh oh. Another case of cyberfraud.” 

As we all know, it’s a ubiquitous and growing problem. Fraud doesn’t care how Internet-savvy you are. “Fraud happens to everyone, even the smartest people,” says Phillip Reed, an asset protection attorney in Kalamazoo, Michigan. “The tactics have gotten so sophisticated.” 

In fact, the Federal Trade Commission says 2.6 million consumers were victims of fraud in 2024. These crimes resulted in losses of over $12.5 billion, a 25 percent increase from the previous year, Rodeck tells us.  

The rise of artificial intelligence and cryptocurrencies have only made cybercrime easier and more profitable. But Rodeck has a handful of tips to keep us prepared and informed so we can protect our money and our identity. Let’s take a look.  

(For further reading on this topic, we wrote about how fraudsters are using artificial intelligence to ply their trade just a few weeks back here on the Blog.) 

Costs of Digital Crime Keep Skyrocketing 

Rodeck points out something interesting: even though consumers lost a record amount of money to fraud in 2024, the number of complaints remained roughly the same as the year prior. “In other words, the average incident got more expensive,” he writes.  

Kimberly Sutherland, global head of fraud and identity at LexisNexis Risk Solutions, warns, “Today’s fraudsters are patient. They aren’t in a rush to get $100 from you. They’re waiting to get $100,000.” 

Investment Scams, Imposter Scams Trigger Highest Losses 

Not all scams are created equal, of course. Last year, Investment scams made up the largest portion of losses, at $5.7 billion. These were followed by Imposter scams at $2.95 billion.  

“Someone could impersonate one of your friends or family members and request financial assistance,” Rodeck explains. “With AI, they can spoof voices over the phone. Online dating scams gain a victim’s trust online through what appears to be a dream relationship before asking for money.” 

According to Sutherland, online shopping scams occur more frequently overall, but are less expensive on a per-incident basis.  

For the Scammers, Retirees Have a Target on their Backs 

“People over 60 were the most likely age group to report internet crime to the FBI in 2023, and lost the most money,” Rodeck writes. “Thieves see this generation as an easier target.” 

Reed explains why. “They didn’t grow up with this technology as kids. It’s not that they aren’t paying attention, but it’s something they had to learn and are now facing new threats.” Along with this lack of experience, retirees’ lifelong savings pose a tempting opportunity for scammers. 

But Rodeck says that if you have any doubts—especially when making an online purchase or providing important information—it’s always safest to double check. Show the texts, emails, or popup images to a trusted relative or friend who can help you figure out whether it’s a scam or not.   

It’s Time to Get Serious and Strategic About Strong Passwords 

One of your strongest security measures against online fraud is a strong password. Reed likens it to locking your front door at night. A strong password avoids short codes with easily guessable words—like names, addresses, or common phrases.  

“Strong passwords are at least 12 characters long, use a mix of upper- and lower-case letters, and include numbers and symbols,” Rodeck writes. “You should have different passwords for every account. And avoid writing passwords down in an easy-to-spot location, as the wrong person could peek while visiting.” 

There are secure programs that can help you keep track of your passwords. Bitwarden and LastPass help you generate and store randomized passwords for all your accounts. And enabling two-factor authentication—where you verify your login attempts with your smartphone through a call or text—can supercharge your password security. 

Finally, while software updates can feel like a pain, Rodeck writes, “Your phone, computer, internet browser, and other software frequently recommend updates. Stay on top of them, as these include the latest cybersecurity systems.” 

Raise Your Guard: Be On Constant Lookout for Imposters 

Your bank accounts and credit card statements can be your first indicator of any trouble. Rodeck suggests checking them weekly for unusual activity, or even setting up account alerts so you receive a text, email, or in-app message for every transaction.  

Amber Schiffert, a financial planner with TARA Wealth in San Diego, says, “Scams often start with small transactions first, so you don’t notice. Watch out for a 34-cent charge at somewhere you’ve never shopped.” 

Rodeck warns that cyberthieves are always trying to impersonate legitimate services: “a text message claiming that you owe money for unpaid tolls, a phone call pretending to be from your internet provider, a computer screen popup saying it needs to fix a virus, an email claiming to be from the IRS saying you owe money, the list goes on.” 

In fact, 78 percent of people report receiving weekly mobile scams, according to a 2025 survey from Malwarebytes, which sells anti-virus software. 

Sounds Too Good to be True? You’re Absolutely Right! 

“Slow down and verify everything,” Rodeck writes. “Cybercriminals often insist that you must act fast — or the ‘deal’ will pass you by or your credit score will suffer. If you receive a call, hang up and contact the organization directly. Avoid clicking on links in emails, and refrain from replying with private information. You may want to establish a family code word that you can use on the phone to verify identities in case of AI voice fraud.” 

Cyberthieves are masters of imitation. They create spoof websites that copy legitimate brands, but aren’t real. They do this hoping you’ll enter your credit card number or any other personal information that they can use. “Before placing an order, double-check that you are on the correct retailer’s page,” Rodeck advises.  

This is especially true for posts on social media or online marketplaces where goods and services are sold. “If you see someone selling Taylor Swift tickets on Facebook for $400 when the market value is $4,000, don’t fall for it,” says Reed.  

Your Data is as Valuable as Your Cash – so Guard It Well 

Fraudsters aren’t just after your credit card number. Any personal information can be useful to them for stealing your identity. “If someone asks for information to verify your account, push back and ask if it’s really needed, especially for something personal like your Social Security number,” Rodeck writes.  

Also, consider carefully what to reveal on social media platforms. Rodeck adds, “Things like your date of birth, your childhood hometown and pet names could be used to answer security questions to access your digital accounts. Thieves could also use that information to impersonate you. Considering making your social media accounts private, so only people you know see what you post.” 

To Protect Yourself, How You Pay Online Matters 

Certain methods of payment are more secure than others. “Credit cards have fraud protection, backed up [by] federal law. If you report fraudulent charges within 60 days of receiving your account statement, your liability is limited to $50,” Rodeck writes. 

However, other forms of digital payment—like electronic checks and payment apps like Venmo—have less fraud protection. While you can attempt to file a formal dispute with your bank or the payment app, there is no guarantee of a refund. “Think of it like giving someone cash with these payment options. You better be sure,” says Sutherland. 

“And if you send cryptocurrency, that’s likely irreversible given the hidden nature of these transactions,” Rodeck adds. “It’s no wonder that people reported losing more money to bank transfers and cryptocurrency transactions than all other payment methods combined in 2024.” 

If You Think You’re a Victim, the First 72 Hours are Critical 

So what do you do if you think you’ve spotted a problem or become a victim of online fraud? Step one is to contact your bank, credit card company, or payment app immediately.  

“That first 72-hour window is so important. It gives them time to lock down your account,” says Reed. Rodeck adds that the sooner you act, the higher your chances are of stopping the fraudulent transaction before it goes through. 

Next, you should change the passwords on any account you believe was exposed to fraud. “If you provided personal information, especially your Social Security number, consider placing a credit report freeze with the three major rating agencies,” Rodeck writes.  

Schiffert adds, “As long as you’re not trying to buy a home soon or apply for other new lines of credit, we recommend using a freeze. It’s better safe than sorry.” 

Don’t Hide Your Story: The Authorities Want to Know What Happened 

Finally, make sure you report any incidents to the proper authorities. Rodeck writes, “Report incidents of cybercrime to federal agencies through the FBI’s Internet Crime Complaint Center and the FTC. These agencies could help you retrieve lost money and assets while taking steps to bring justice against the criminals.” 

And there’s zero shame in reporting. Sutherland’s words of encouragement conclude the article: “People feel too embarrassed to report, but they shouldn’t. It’s how authorities and businesses learn what’s needed to protect others.” 

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(originally reported at www.kiplinger.com)