Scams Are a Problem for Me, You, Them, and Us   

The scam problem has quite literally become a very big problem – for everyone. The dawn of COVID gave way to a rapid explosion of scams, and there seems to be no end in sight, given the subsequent (and current) proliferation of them. Javelin Strategy & Research began tracking scam losses separately in 2021 after realizing the crime made up such a significant portion of fraud in the U.S. the previous year. And while today’s scam landscape isn’t quite as fertile as it was then (we’re no longer facing a global pandemic that became a breeding ground for scams of all kind) – yet they continue to rage on. Last year, Javelin reported roughly half of all fraud losses in 2023 were the result of scams – over $20 billion of the nearly $43 billion total fraud losses were scam-related. 

The Role of AI in Modern Scams: What Businesses Need to Know

Artificial intelligence (AI) has also recently exploded onto the mainstream scene and provided scammers with new means of creating difficult-to-recognize scams in abundance – making them even more successful in their malicious endeavors. Gone are the days when scam messages were poorly written and riddled with typos – these red flags have largely disappeared, leaving scarily legitimate-looking messages. 

And even if all signs do point to a scam, sometimes the threatened consequences of not complying with the sender are too frightening for the victim to reckon with. Take, for example, these two real-life cases handled by Iris^® Powered by Generali’s scam specialists below. These cases were submitted via our ScamAssist^® tool, in which we let customers know whether or not it’s safe to engage with messages or solicitations they find suspicious.      

Real-Life Scam Cases Resolved with ScamAssist

A Dating App Romance Quickly Turned Sour

A customer sent us a scary email thread between herself and a person she had met through a dating app. Threatening messages appeared almost immediately.

First, she was asked for inappropriate pictures of herself, then she was asked for money to “help save his daughter’s life at the hospital,” and finally, she was told that noncompliance would result in compromising videos of her being leaked.

While the sender’s domain did not appear to be blacklisted, it was clearly a blackmail/extortion scam. We noted to the customer that one of the most common themes scammers use is “I or someone I love is sick or hurt.” 

We also pointed her to a recent romance scam blog by the Federal Trade Commission (FTC). The customer was advised not to engage and to report the situation to the FBI. We also reported the case to the Better Business Bureau. 

A Hacker’s Email Threats Sound Dire

A customer sent us a long email they had received from a hacker who claimed they had full access to all their devices for a couple of months. The sender said they had recorded videos of the victim in very compromising situations that they would release publicly unless they were able to transfer $1,450 USD via Bitcoin within 48 hours. The customer was advised not to engage as this was a well-thought-out scam.  

For many victims who do not have experts to turn to – let alone moral or emotional support – they find themselves submitting to the scammer’s demands in hopes that the issue will simply go away. It’s never that simple, though. 

In other instances, individuals so desperately want the solicitation to be real because what they’re being told is just too good to be true (because it is). Here is another recent case our team handled for a ScamAssist^® customer:

The Scammer Pitched a Dream

We received an email from a customer telling us about a phone call from somebody claiming to be from Publisher’s Clearing House. They claimed she won $7,000 a week for life, and to access her money, she’d need to purchase an American Express gift card. She was also asked how long it would take her to procure the gift card and if she had a PayPal account. 

Having suspicions, the customer contacted us, and after review, we advised her not to engage with or otherwise provide this entity with any personal information or payment. We also provided her the reasons we came to that conclusion and reported the scam to the Better Business Bureau.  

It’s these kinds of stories that make us realize why scammers are so successful. Still, there is some good news. Organizations have recognized the need for consumer education. It’s evident in the tamping down of scams that we’ve seen since 2020, in which a whopping $43 billion in losses was attributed to scams alone, as noted in their 2021 Identity Fraud Study. Javelin credits this to “consumer outreach by financial services and consumer advocacy groups, and stronger fraud prevention tactics at banks and credit unions.” 

Why Scam Prevention Efforts Should Be a Priority for Every Business

Scam education is a critical line of defense that no company should consider themselves exempt from. And we mean that in every sense: If all organizations put some level of effort into protecting and educating their people today (be it their customers, members, or employees), we’d be in a better position tomorrow. 

Education is truly the best prevention method when it comes to scams – because even if an individual does have a scam support service, like Iris’ ScamAssist, they still must have the intuition to know the message is suspicious. Otherwise, they’ll become another scam statistic, handing over financial or other sensitive identity data to a scammer – despite having the resources to prevent them from falling for the scam in the first place. 

By staying informed about the latest scam tactics and always remaining skeptical, individuals can better protect themselves. It seems simple, but that kind of messaging needs to be all around us. 

As Javelin noted, public awareness campaigns and other outreach vehicles have played vital roles in the effort to educate consumers. To date, the primary responsibility has fallen to fraud-adjacent organizations, boiling down the onus to select entities to communicate and educate consumers. 

We argue that’s not enough. Hospitals, banks, grocery stores, doctors’ offices, retailers – we mean everyone – need to pitch in, too. And lest we forget: there are also benefits to the business in doing the right thing. Let’s take a look. 

Your Brand Reputation is at Stake

Scammers will imitate any entity to create a plausible scenario that requires consumers to fork over their credit card or other sensitive information. There is a case to be made for almost any type of organization as to why a scammer would illicitly use their company name.

For example, large organizations make prime targets because they have a large customer base to go after (scamming is all about the numbers), and there is much credibility and trustworthiness to exploit. On the other hand, small organizations are easy targets because they often have weaker cybersecurity measures and fewer resources to detect and respond to scammers fraudulently representing their brand. 

Regardless, there is much to lose for any company’s brand that is the face of a scam. As such, it’s in every company’s best interest to shrink the success of scammers so they’re not the next brand to be misrepresented.

It’s Time We Shift How We Look at Scams 

Creating a culture that values transparency and honesty is essential. This cultural shift can reduce the stigma victims often feel, encouraging them to come forward and report scams without fear of judgment. When individuals report scams, they contribute to a pool of data that can help law enforcement and regulatory agencies understand and combat these fraudulent activities more effectively. Each report adds to the collective effort to track and analyze scam trends, leading to better prevention and enforcement strategies.

Ultimately, the less active scammers there are, the more secure you, your people, and your business are. 

We’re All Connected by the Internet of Things

In a digitally connected world, the actions of one individual can affect many others. For instance, falling for a phishing scam can lead to the spread of malware that compromises not just one person’s data but potentially the data of contacts or the security of organizations they are affiliated with. Attacks like this can spread like a virus – and you don’t want your business to be the next to encounter it. 

And lastly, on a fundamental level, combating scams is about protecting and upholding the rights and dignity of all of us. It’s an ethical imperative to support victims and work towards a society where dishonesty and exploitation are actively countered.

Top 4 Strategies to Safeguard Your Business Against Scams

If you’re ready to proactively safeguard your brand to prevent scammers from exploiting it and also want to make a difference in the world (truly, because for some scam victims, it really can seem like their world is crashing down on them!), we invite you to start here. 

We’ve put together the top five anti-scam strategies for businesses. It’s our hope that readers feel empowered in their role (regardless of their department or position) to speak up and initiate these efforts – particularly since implementation can only be good for business.  

1. Educate your customers on how to protect themselves. 

You probably could have guessed this one. Inform your customers about how to identify legitimate communications from your company. 

Regularly update them about common scams and encourage them to report suspicious activities. You can do this by integrating scam awareness messages into regular communications, such as billing statements, newsletters, and customer service interactions. And don’t forget about leveraging your social media platform to help spread the word about scam prevention.  

You can visit https://consumer.ftc.gov/scams for loads of great educational resources that you can utilize, including articles, tips, and printable PDFs. The Federal Trade Commission (FTC) also has a dedicated page for reporting scams. 

2. Implement regular, ongoing security training for all employees.

Employees often serve as the first line of defense against scams that may be targeting your organization. And it’s likely they are already beleaguered by phishing and social engineering attacks. 

Educating them on recognizing and responding to these types of threats is vital in thwarting unauthorized access and data breaches. This type of training also helps to foster a culture of security within your organization; when employees understand the risks and their role in avoiding scams, they are more likely to take ownership of their actions and commit to secure practices, thus reinforcing a collective responsibility towards cybersecurity.

By prioritizing employee training – and ensuring that it’s done consistently! –companies enhance their overall security posture, ensuring that every team member is equipped to contribute to your organization’s defenses against scams. And even though it’s a serious subject, don’t be afraid to make it fun; that will only help keep your staff engaged.  

3. Monitor your brand online. 

Regularly monitor the internet for unauthorized use of your brand. This can include using tools to scan for fake websites or pages that misuse your brand and keeping an eye on social media for accounts that impersonate your brand or misuse it to scam consumers. 

Also, it’s a good idea to secure legal protection for your brand elements like logos, names, and slogans by registering them as trademarks. This legal acknowledgment can help you enforce your rights against imposters and counterfeiters. 

4. Implement security measures. 

This is a fairly broad statement, we know. As a jumping-off point, however, you can start with these items. 

First, ensure your website is secure with an SSL certificate. You’ll also want to obtain verification badges on social media platforms to confirm the authenticity of your accounts. Lastly, if your customers have accounts with your company, make sure the login process has two-factor authentication! This adds an extra layer of security, making it harder for scammers to gain unauthorized access even if they have stolen credentials. 

How ScamAssist Can Help Protect Your Customers (And Strengthen Your Brand)

If you really want to go the extra mile in the battle against scams, consider offering a scam support service to your customers – or even a full-fledged identity protection solution, since sensitive data is usually what scammers are after anyway. 

Iris specializes in offering B2B2C identity & cyber protection solutions that give our clients unmatched control over what they want their experience to include and how they want to deliver it to their audiences. Choose your user interface, enrollment method, whether you store customer data or we do, and the right mix of protection tools to craft the perfect solution for your business and your customers. 

Importantly, we also offer ScamAssist, which includes an easy digital interface for customers to upload suspicious solicitations to. Or, if customers prefer, they can call our expert fraud resolution and scam support team – no matter what time of day (or night) it is. We’ll research and analyze the communication in question and quickly provide your customer a determination, as well as next steps to take.  

It’s offerings like these that can make all the difference for your customers. They build trust and reinforce your commitment to protecting their sensitive data. Ultimately, too, if you’re in a highly competitive space, this added value can be a deciding factor in customers choosing your brand over a competitor. 

Conclusion: Taking Action to Prevent Scams in Your Business

So while, yes, the scam problem is indeed a very big problem for everyone, we can ensure a better tomorrow if we all do our part. By implementing these strategies, and offering customers valuable, in-demand scam analysis tools and resources, businesses can significantly reduce their risk of scammers damaging their brand and can maintain their customers’ trust and loyalty by helping them mitigate their scam risk as well.