An elderly man in Singapore was scammed out of $51,000 as he attempted to order Peking duck through an app. Within minutes of entering his financial information, his accounts were cleared out, reflecting an increasing trend of scams perpetrated on phone apps.
A Facebook seller sent instructions to download the Grab&Go app when what appeared to be $5 charge ended up sweeping the man's life savings, Insider reported.
Text message or WhatsApp scams are occurring more and more as phone users get swindled out of thousands, a new analysis from the Federal Trade Commission shows.
According to the FTC, bank fraud warnings were the most common form of text message scam reported, with many of the scams impersonating well-known businesses.
Altogether, consumers reported losing $330 million to text message scams in 2022, which was more than double from the prior year.
One of the most common scams occurred when users impersonated large banks like Bank of America and Wells Fargo, asking victims to verify a large transaction they didn't make. This type of scam increased 20 times as much since 2019.
Users also routinely got scammed out of money by users saying they were getting a free gift or asking for fake claims of package delivery issues.
Still, others lost money based on fake job offers and phony Amazon security alerts, the FTC found.
How To Avoid Scammers
The average reported loss was $1,000, but there are certain strategies you can employ to avoid scammers the next time they strike.
"Scammers use the speed of text communication to their advantage: they hope you won't slow down and think over what's in the message," the FTC said in its report. "Some messages promise a good thing – a gift, a package, or even a job. Others try to make you panic, thinking someone's in your accounts. These are all lies and ways to take your money and personal information."
Scam messages can also appear like they're coming from the IRS, with some successful scammers offering fake coronavirus relief or tax credits.
"This is phishing on an industrial scale so thousands of people can be at risk of receiving these scam messages," said IRS Commissioner Chuck Rettig previously to MSN. "In recent months, the IRS has reported multiple large-scale smishing campaigns that have delivered thousands – and even hundreds of thousands – of IRS-themed messages in hours or a few days, far exceeding previous levels of activity."
If you don't know the number, you should ignore or block, experts say. And never share any personal information like name, Social Security number or banking information.
Banking information can leak your savings to the scammer, while others will use your Social Security number for identity theft.
Also make sure to never click any link with a text message if you don't trust the user.
If you think someone is targeting you for a scam, forward the message to 7726 (SPAM). This will help your wireless provider block any future similar messages.
You can also report a message on the Apple iMessages app or Google Messages app for Android users.
Above all, report the message to the FTC at ReportFraud.ftc.gov.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Suzanne Blake is a Newsweek reporter based in New York. Her focus is reporting on consumer and social trends, spanning ... Read more
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