Spam and scam calls have become an escalating problem in the United States, inundating consumers with an astronomical number of deceptive and fraudulent phone calls. In October 2023, Americans faced an estimated two billion spam and scam calls, albeit a decrease from the peak of 2.6 billion calls recorded in November 2022. Not only has this deluge of calls been a nuisance, but it has also resulted in wasted time, with Americans spending approximately 195 million hours answering these calls in 2023 alone.
Common Types of Scams
Scammers perpetrating credit card fraud have become increasingly adept at deceiving unsuspecting individuals. They often pose as representatives from financial institutions, luring victims into disclosing their personal and financial information. With this data in hand, scammers can make unauthorized transactions, leading to financial losses and identity theft.
Identity theft remains a prevalent scam, with fraudsters attempting to gain access to sensitive personal data for malicious purposes. By pretending to be reputable organizations or even government agencies, scammers trick victims into sharing their Social Security numbers, birthdates, and other critical information, opening the door for significant identity theft and financial ruin.
In the realm of healthcare, scammers prey on vulnerable individuals, particularly the elderly, by posing as representatives from Medicare or insurance companies. Through these fraudulent calls, they seek to obtain personal information or sell unnecessary policies, ultimately defrauding victims out of money and undermining their trust in the healthcare system.
Scammers have also targeted unsuspecting Americans by posing as Social Security Administration agents. These fraudulent calls claim that the victim’s Social Security number has been compromised or involved in illegal activities. The goal is to manipulate individuals into providing personal information or making fraudulent payments under the guise of resolving these fabricated issues.
Car warranty scams have seen a surge in recent years, with scammers posing as representatives from automobile manufacturers or extended warranty providers. By preying on consumers’ fear of costly repairs, fraudsters persuade victims to divulge personal and financial information or make unnecessary payments, resulting in financial losses and potential automotive complications.
Scammers who target individuals in debt employ aggressive tactics by threatening legal action or other consequences to coerce victims into paying non-existent debts. By exploiting fear and intimidation, these fraudsters attempt to extract money from unsuspecting victims, worsening their financial situation and exploiting their vulnerability.
Holiday Season Scams
The holiday season often provides scammers with ample opportunities to exploit unsuspecting individuals. Common scams during this period involve charity donations, fake deliveries, and vacation upgrades. Fraudsters take advantage of the generosity and excitement surrounding the holidays to deceive people into making illegitimate donations, divulging personal information for fraudulent deliveries, or falling victim to vacation upgrade scams that promise extravagant holiday experiences at exclusive discounts.
Emerging Threat: Deepfake Audio
As technology evolves, scammers are now employing deepfake audio, which allows them to impersonate the voices of loved ones. By mimicking the speech patterns and intonations of family members or friends, scammers manipulate victims into believing they are speaking to someone they trust, often seeking financial assistance or sensitive information. This rising threat poses significant challenges in verifying the authenticity of phone calls and protecting individuals from emotional and financial harm.
Scammers’ tactics and platforms
Fraudsters use every available medium on smartphones to target consumers, deploying sophisticated AI-powered scams through calls, texts, emails, and social media. Through relentless and deceptive communication, scammers attempt to exploit vulnerabilities, instill a sense of urgency, and gain victims’ trust. To combat these tactics, Truecaller, a popular call identification and blocking app, aims to keep US smartphone users informed about modern-day scams while highlighting their prevalence in different markets.
International origins of spam calls
Approximately 10% of spam calls originate from outside the United States, with countries such as India, Nigeria, Egypt, Colombia, Canada, and Peru being significant sources. The proliferation of call centers in these countries, coupled with lax regulations, enables scammers to operate with relatively more impunity. International cooperation and efforts to strengthen regulations are crucial in combating the global nature of these scams.
Increasing use of auto-dialing software
Scammers have increasingly relied on auto-dialing software to deliver pre-recorded messages. This automated approach allows fraudsters to target a large number of potential victims simultaneously, amplifying their reach and effectiveness. The estimated global loss due to such calls in 2023 is staggering, with victims expected to lose a staggering $58 billion.
The overwhelming rise in spam and scam calls poses a significant threat to individuals’ financial security, privacy, and overall trust in phone communication. With billions of calls inundating US consumers, it is imperative to raise awareness about the various types of scams, their tactics, and the importance of staying vigilant. By implementing robust cybersecurity measures, strengthening regulations, and fostering international cooperation, we can take steps towards mitigating this pressing issue and protecting individuals from falling victim to these malicious schemes.