Fraud in America is no longer just a trend in the world of crime. It's an all out financial war being waged on American households. And while officially reported losses to hover between 12.5 and $15.9 billion a year, Real Economic Estimates accounting for underreporting, put that number between 100 and 18 and close to $200 billion.
And that does boil down to a $1,000 hit for every single house in the country. Now, investment and crypto scams drive the largest share of cash losses, with the median victim losing over $30,000. Now, while seniors are targeted for the biggest dollar amounts, it is Americans under age 20 who are actually the most likely to get scammed, accounting for over half of all complaints.
Well, joining us here at the New York Stock Exchange to weigh in is the Suffolk County Police Department's financial crimes unit, Detective Sergeant Thomas Gabriel and Detective Anthony DeLuca. Gentlemen, thank you so much for joining me.
Thank you for having us.
Well, we all know that Americans are losing billions a year to financial fraud. So first, tell our viewers what they need to know about the reality of fraud.
I mean, so what we're seeing is obviously with the economic uncertainty, with the war in Iran, we're seeing a lot of people putting their money in commodities. We really want people to do their due diligence and know what they're investing in. You know, we are seeing an uptick of crimes in in terms of scans with gold bars specifically.
Yeah. And because so many people out there are vulnerable, where should they actually turn when they suspect the potential for financial fraud?
Well, what happens quite often in these frauds is the fraudster is going to tell the person, don't talk to anybody. So we would suggest turn to anyone, turn to a family member, turn to a trusted friend, or turn to a police department or your financial institution. But cut off that talk with whatever persons asking you for money and verify it through a trusted source before you do anything with your motives.
Yeah, and when it comes to vulnerable populations, it's no surprise that seniors are targeted. But I also find it surprising that Gen Z is also a vulnerable population. So can you walk me through the why?
Uh, we see everyone. Everyone has a cell phone. You know, it is very easy to be contacted nowadays in terms of text messages, emails. We're seeing phishing calls. We're seeing texts that are fraudulent text messages. It's for a young person. It's hard to decipher whether it is legitimate or whether it is fraud.
Mhm.
Yeah. And what is your perspective on this detective shortage.
So what what happens with the younger people. Again the access and I think it's the, the quest for sometimes the quick dollar. And if it sounds too good remember the old saying if it sounds too good it usually pretty. It pretty much is So they have to be very, very cognizant of the fact that, you know, there's nothing for free in this life and you have to work for it.
So I think it's just a generational thing that they're very susceptible to these get rich quick schemes. And what goes along with them usually is someone else gets rich quick and it's not it's not you.
Yeah, that's really interesting because I think sometimes when it comes to financial fraud, we might think of our elderly and aging parents being targeted by text message, email or landline phone. But at the same time, we're seeing that social engineering works for all of us that have these devices.
So I do want to get your perspective on synthetic ID fraud. How does it actually work?
So synthetic ID fraud, essentially it is you take a real person and then you marry them with a different Social Security number. Quite often that Social security number is an infant social security number. So there's no reason to be checking any credit on that person for 18 years. So basically the fraudster now has a has an 18 year lead on using that particular social security number until that young person goes to get a car loan or a student loan or the first loan or first credit card.
So basically it's a synthetic ID is a real person married with another social security number. They merge it into the into the credit bureaus. Now you become a distinct individual as far as the credit bureau is concerned. You build that credit up and then at some point in time you take it you, you, you bust it out.
That's the term to bust it out. You get car loans, mortgages, personal loans, credit cards. And then what happens? You default on all those loans. And then the young person is is sitting there holding the bag. Eventually when they go to, um, uh, open their first law. Mhm.
Yeah. And these scams are getting sophisticated especially in this age of AI. But since you're both on fintech TV, I do want to get your take on crypto scams out there. What's happening when it comes to digital assets?
We're seeing a lot of crypto scams, like you said. What it is, is it's very hard to trace. It really is. Um, you really like I previously stated, you really have to know what you're investing in. Um, a lot of, you know, a lot of these things, like my Sara just stated before, uh, people want to get rich quick scheme, you know, and that's, you know, people are seeing the bitcoin, people are seeing all these little coins.
Um, a lot of it might not be real. Um.
Yeah. And I do want to get your perspective on how you actually track down some of these bad actors. And if you do fall victim to financial fraud, what is the likelihood that you can recover your assets?
So as far as the first question is, it's all time detective work. So even though these are higher tech crimes, the way we approach it is the same way. Bank records, phone records, Interviews, uh, surveillance video. So anything that was done for a traditional crime is done for these same, same type of products.
Yeah. And you focus on financial fraud. So for viewers out there who are listening and watching right now, what would you say to them in terms of the red flag that you noticed as you mentioned? Um, if it's too good to be true, then it probably is. But what can consumers actually do to protect themselves?
I would say they have to talk to people. They have to get the word out there. They have to consult with somebody. You know, if a lot of these fraudsters tell you to not speak to anybody, keep your phone on, keep it in your pocket. Um, we encourage you to talk to people, get someone else's opinion, and maybe someone else has a better viewpoint on it than you do.
Yeah. And, Detective Sergeant, I want to get your perspective as well.
So the big thing that would be number one. Talk to somebody. Because once you break that chain where they don't have control over you via the phone. Then you have the ability to talk to somebody and kind of step back from it. The other big one is kind of consider how you pay. If you have a government agency calling you, asking you to wire transfer money, put it into crypto, buy gift cards or buy gold bars and then give it to a courier.
They that should raise red flags. So one of those four modes to pay a debt supposedly that you owe to the government should set off warning bells and red flags to cease and desist immediately and go talk to somebody about.
Yeah. And there's this saying that hindsight is 2020. So, detective, detective Sergeant, before I let you go, what would you say to Americans out there in terms of safeguarding their assets and protecting their families?
I would say definitely lock your credit, definitely lock your credit, monitor your apps, monitor all of your banking information. Uh, you know, maybe not on a daily basis, but maybe on a weekly basis. Any unusual charges? Call your bank as soon as possible.
And what about you?
So
people have to realize it's their money. And there are a lot of people out there trying to get to that money. So it's your responsibility to safeguard your assets, not only your assets, but as children taking care of your elderly parents and elderly, elderly, elderly relatives assets as well. So be vigilant.
Check as much as. As often as you can. Get on top of things when they don't seem right. But it's your responsibility. The banking industry is not going to do it for you. No one's going to do it for you. It's your responsibility.
Some sage words of advice there. So I appreciate your time. Gentlemen. Thank you so much for joining us here at the New York Stock Exchange.
Appreciate it. Thank you. Thank you.
