Larry Magid: Beware of online scams

Americans lost at least $16.6 billion to scams in 2024, according to the FBI, and the real number is almost certainly far higher because many victims never report the crime.

Much of this crime involves online scams, and although anyone can be a victim, older Americans are frequent targets. Not only do they often have larger nest eggs, but scammers also exploit factors such as trust in what appear to be legitimate institutions, a greater likelihood of answering unknown calls, and, in some cases, less familiarity with newer technologies. The FBI estimates that Americans over 60 lost more than $4.8 billion in 2024.

 

One of the most common scams is phishing: fake emails, texts, social media messages or phone calls that impersonate legitimate organizations such as banks, Amazon, Microsoft or the IRS. These messages often create a sense of urgency, warning that “your account will be suspended,” that “you may have been a victim of fraud,” or that you have a “weak password” or have already been compromised. Online scams typically direct you to fraudulent websites designed to steal your login credentials or other personal information, or get you to sign up for a service that supposedly will protect you.

Organizations such as Microsoft, Amazon and the IRS generally will not contact you out of the blue with urgent warnings about your account. If you ever receive a message that you think might be legitimate, such as one that appears to be from your bank, contact the company directly or go to its website by typing the address into your browser rather than clicking on any links in the message. Always double-check the web address to make sure it’s accurate and not something that only looks similar.

Romance scams can affect people of any age and often begin on dating apps, social media or even text messages. The scammer typically claims to be overseas or otherwise unable to meet in person while building trust through messages and calls. Once you’re emotionally invested, they ask for money, perhaps for a plane ticket, a medical emergency or a frozen bank account.

I often get texts or WhatsApp messages with a photograph of an attractive woman who claims to be interested in meeting me. As flattering as that may seem, those messages are definitely  scams.

Tech support scams

Have you ever gotten a call, text, email or pop-up message telling you that your computer is infected? That will often lead to the scammer asking for permission to remotely “fix” your computer by installing software designed to steal your money, personal information or both. If someone claims they’re from Microsoft, Apple, your internet service provider or any other company, it’s almost certainly a scam.

Most scammers reach out to you, but there are also fake “tech support” websites designed to lure you into contacting them. I almost fell for one several years ago when I Googled the number for HP’s tech support to fix a paper jam. The person who answered asked me to install software so he could diagnose the problem. That’s sometimes legitimate, but I became suspicious because software can’t cause a paper jam. I checked the website where I found the number. It looked like an HP site, but the URL wasn’t HP.com, so I knew it was fake and hung up. Now, whenever I look up a support number, I make sure it comes from the company’s official website.

“Grandparent scam”

Another common scam is when you get a message saying that your child, grandchild or a close friend is in trouble and needs cash right away. It could be an accident, an arrest or a medical emergency, often accompanied by a request to wire money. If this ever happens, reach out directly to the person or someone who may know their whereabouts, but don’t send money. Even if it turns out to be legitimate, once you wire money, it’s very difficult and often impossible to get it back. Grandparents are often the victims, but it can happen to anyone with loved ones. In 2025, The Justice Department announced that it charged 25 people from Quebec, Canada, for allegedly participating in a “Grandparent Scam” that defrauded elderly individuals out of over $21 million in Vermont and more than 40 other states.

If you didn’t enter, you didn’t win

We all want to win the lottery or a sweepstakes, but here’s the catch: if you didn’t enter, you didn’t win. If you get an email, text or phone call claiming you’ve won a prize, assume it’s a scam. Years ago my mother, who was suffering from dementia, got a call saying she had won a car but first had to pay taxes and registration fees. Fortunately she called me before sending money, and I told her it was a fraud. Sadly, over the next few years she did fall for other scams before she died.

And fake contest winnings are not the only “too good to be true” pitch. Be especially wary of investment offers promising unusually high returns. The FBI says Americans reported losing more than $6.5 billion to investment fraud in 2024, much of it tied to cryptocurrency.

If you’re looking for work, beware of job scams. These can include fake job offers that ask you to pay for training or equipment, or requests that you deposit or cash checks on an employer’s behalf, which can turn you into an unwitting participant in money laundering or check fraud. I frequently receive texts offering jobs that I never applied for, and they are almost certainly scams.

AI increases risk

Artificial intelligence now makes it possible to clone someone’s voice or create photos and videos that appear to come from a loved one. Criminals are using AI in so-called “virtual kidnapping” scams, claiming to have your child or grandchild, or posing as a friend or relative asking for money because of an emergency. These scams often create urgency to keep you from checking the story. Always try to verify the person’s identity, such as calling them back on a number you already have or asking a question only they would know the answer to.

There are a few warning signs that show up in many scams. The message creates urgency and pressures you to act quickly. It asks you to keep the situation secret or not verify it with others. And it often demands payment in unusual ways such as cryptocurrency, gift cards, or wire transfers. When you see those warning signs, slow down and verify before taking any action.

And speaking of cryptocurrency, be very careful before investing. Some people have made big returns, but crypto is extremely volatile, and unlike bank deposits, cryptocurrency holdings generally are not insured. If you do decide to invest, consider using a well-known financial institution or brokerage such as Fidelity or Schwab, or a major exchange such as Coinbase. These companies operate under U.S. regulations and generally offer stronger security practices than unknown platforms, though investments can still lose value and protections are limited.

Finally, use strong and unique passwords for every account, make sure your operating system, browsers and other software are up to date, only shop from known online merchants, and be wary of unsolicited emails, texts or calls asking for personal information or payment. When possible, enable two-factor authentication, which adds an extra layer of security even if a password is compromised. And remember that legitimate companies and government agencies rarely demand immediate payment or sensitive information through unexpected messages.

Larry Magid is a tech journalist and internet safety activist. Contact him at larry@larrymagid.com.