More than $10 billion was lost to fraud in 2023 by American consumers. The most commonly reported scam was imposter fraud, in which a thief poses as your bank, financial institution, or a government agency to steal your money or identifiable information. Nearly $2.7 billion was reported stolen in 2023 from imposter scams alone.1 Be aware, this type of fraud is on the rise and the impact can be devastating.

Here’s how the imposter scam may play out: Your phone rings. Caller ID shows that it’s your financial institution on the other end. But it’s not them—it’s a scammer. The fraudsters tell you they have seen fraudulent activity in your account and you need to take action right away.

They tell you that in order to verify your identity, they will send a code for you to read to them. It is actually a code to reset your password so they can steal all your money. Do not ever read or otherwise give a code to anyone unless you have called them on the bank’s or financial institution's official number.

To protect your money and your identity, remember these critical guidelines:

• If you receive a call, text, or email asking you to take action or share personal information, do not respond.
• Instead, hang up the phone or close the email or text, and go to the website of the bank or financial institution and contact them directly.
• Do not provide or "confirm" any of your personally identifying information.
• Never read back a one-time security code (unless you have initiated the service call to a company's official phone number).
  

If something seems fishy, hit the brakes. Wait until your emotions have settled and research what's going on. Fraudsters use tight deadlines to try to force you into a rash decision. And remember that requests for payment in cryptocurrency, gift cards, or bank wires are red flags for scams. Here are 5 other common financial scams to avoid—and what to do if you think you're a victim of them.

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