An expert warns that fraud is at a critical point, and advises to be cautious of these 5 financial scams in 2024.

• Using advanced technology, thieves can create a "deepfake" version of your voice recording to impersonate you.
• In the first three quarters of 2023, U.S. consumers lost more than $7 billion due to fraud, which is a 5% increase compared to the same period in the previous year, as reported by the Federal Trade Commission.
• If you are aware of a specific scam, you are 80% less likely to fall for it.

Advanced technology and AI systems are increasingly challenging for people to identify fraudulent schemes.

In 2023, the first three quarters saw U.S. consumers lose more than $7 billion due to fraud, which is a 5% increase from the same period in 2022, as reported by the Federal Trade Commission.

The crisis of fraud in this country was stated by Kathy Stokes, the director of fraud prevention programs at AARP.

Organized gangs or transnational criminal enterprises may be responsible for these crimes, with employees following scripts to entice victims into a heightened emotional state," Stokes stated. "It's us versus them.

A bipartisan tax deal may increase the child tax credit for 2023.

Discussing potential scams with family and friends can significantly reduce the likelihood of falling victim to one, as people who are aware of a specific scam are 80% less likely to engage with it, and if they do engage, are 40% less likely to lose money or sensitive information, according to the FINRA Investor Education Foundation.

In 2024, be cautious of these five top financial scams and take measures to protect yourself from falling victim.

1. Grandparent scams

Many fraud schemes begin with manipulating individuals' emotions through deceptive communication in the guise of a trusted relationship.

With advanced technology, thieves can now create an imitation version of your voice to impersonate you in the grandparent scam, causing even more damage than imposter scams.

Scammers often pose as family members in distress, claiming to be in immediate danger such as being arrested or ill, and request money urgently. They frequently attempt to isolate their victims by fabricating a reason the victim cannot seek advice from friends, family, or law enforcement, like stating the case is under a "gag order."

Merrick B. Garland, the U.S. Attorney General, stated in a CNBC interview that elder fraud and abuse are morally wrong. He encouraged all Americans, especially older adults, to be cautious of potential scams, to verify personal information before sharing it, and to report fraud and abuse when it happens.

Some scammers may use a third person to pose as a courier and collect money from a grandparent's home.

2. Romance scams

Fake relationships are increasingly being used to steal money through romance scams, which often begin with private messages on social media or dating apps.

If you trust your new love interest, they may later claim that someone close to them is ill, injured, or imprisoned. They may also say they are in the military or require assistance with an urgent delivery. After telling the lie, they will request money or ask you to make a purchase on their behalf.

Be cautious when someone you don't know asks for payment through gift cards or peer-to-peer services like Venmo and Zelle, advised Ted Rossman, a senior industry analyst at Bankrate.

In 2022, the most significant dollar losses in romance scams were in cryptocurrency, with over one-third of losses occurring in this form, according to the FTC.

3. Cryptocurrency scams

The FTC reports that in 2022, investment-related scams resulted in total losses of over $3.8 billion, with a median loss of $5,000.

Investment scams often use cryptocurrencies as both the investment and the payment method that cannot be reversed, since they lack the same legal protections as credit or debit cards.

Crypto scams may begin with an unexpected call from an "investment manager" offering a seemingly too-good-to-be-true tip or a celebrity impersonating a scammer promising to quadruple your money.

4. Employment scams

Financial fraud scams related to business and jobs are likely to persist in 2024 as companies downsize their workforce.

Some scammers use convincing tactics to deceive victims into believing they are interviewing with a legitimate company. After gaining their trust, the scammers send a fake email requesting personal information or claim to use a third-party service to conduct a background check. Once they have obtained your personal identity information, it is simple for them to access your bank account.

Other job scams may guarantee or make it easy to earn income by purchasing a program they offer, or you'll receive job opportunities that require sending or receiving money to another account.

5. Online account tax scam

In this scam, fraudsters pretend to be a helpful third party and offer to assist individuals in creating an online account at IRS.gov to pay taxes. These scammers can use the taxpayer's personal information to file a fake tax return and receive a refund. Additionally, the information can be used for other financial fraud or identity theft, such as obtaining a loan or opening a line of credit.

To set up an account, check on a refund, or view payments made, the process would begin at IRS.gov. If someone claims to assist with setting up an IRS account and requests personal information, it is fraudulent.

If you fall victim to a scam, report it to local law enforcement, the FBI, the state attorney general where the fraud occurred, AARP, and the FTC.