A consumer protection expert has identified 5 scams to be cautious of in 2023.

As fraudsters' methods to scam you out of your money become more sophisticated, financial technology protections also become more advanced.

Phone scams alone cost Americans almost $40 billion in 2022, and the emotional toll of being scammed can be just as devastating as the financial impact.

To avoid falling prey to a scam in 2023, it's essential to be aware of potential red flags.

Micheal Bruemmer, VP of Experian Data Breach Resolution and Consumer Protection, discussed with CNBC Select the scams that are likely to be most common this year and how to safeguard yourself from them.

Scams to be aware of in 2023

Bruemmer breaks down scams into two big categories: phishing and social engineering.

Fraudulent communication is the primary method of phishing, which mostly takes place online and aims to steal personal data, such as credit card information or login credentials for financial accounts, from reputable sources like banks and employers.

In contrast to phishing, which typically occurs online, social engineering often takes place through phone calls or in-person interactions. Malicious actors employ psychological manipulation and deceit to obtain your financial information or sensitive data.

This year, Bruemmer predicts that five types of phishing and social engineering scams will be widespread.

1. Charitable donations scam

Scammers will go to great lengths to obtain your money, even by taking advantage of your compassion.

Fraudulent charities can range from basic one-person operations to intricate schemes run by registered nonprofits. Regardless of the complexity, the money you're pressured to donate does not benefit any cause; instead, it goes directly to the fraudster.

Phishing scams are more common, but social engineering tactics are often used by scammers to manipulate emotions and deceive victims.

Be cautious when donating to nonprofits and verify their legitimacy by checking their EIN on their website before making a contribution.

2. Romance scams

A romance scam is another social engineering tactic that can cause both financial devastation and emotional heartbreak.

Romance scams are not as intricate as "The Tinder Swindler," and most of them take place online. The offender meets you on a dating or social media platform, quickly tries to establish a relationship with you, and presents themselves as caring, sincere, and flawless. A red flag for a romance scammer is that they likely reside far away and plan to meet you in person, but never do.

Instead of asking for money to pay for medical bills or to get out of trouble, they'll ask for money repeatedly until you stop sending it, at which point the love of your online life will disappear.

To steer clear of falling for a fraudulent online romance, it's crucial to proceed with caution and conduct thorough research on the person, even if they appear ideal. This can help prevent victims from ending up in debt, legal trouble, and with trust issues.

Bruemmer asserts that if something seems too good to be true, it is likely a scam.

3. Fitness and weight loss scams

Scammers exploit individuals' desire for quick fitness results by promising to help them lose weight with little effort, but in reality, they are only interested in taking their money.

You may encounter a fraudulent website that pretends to be a legitimate fitness program promoter, with the aim of obtaining your personal or financial information.

Bruemmer says that someone might try to convince you to sign up for a low-priced gym membership or a different fitness product, promising that you can lose 100 pounds in three weeks and look like new, but you will have to provide your personal details and credit card information.

Be wary of anything that appears too inexpensive or advantageous, as it may be a scam.

4. Car warranty scams

You know a scam is prevalent when it becomes a meme.

Robocalls about car extended warranties are a common occurrence in America, often depicted in online media with humorous images or videos.

Bruemmer reveals that he has a software app on his phone that blocks calls. Last week, he received seven calls for extended car warranty, but they were unable to leave a voicemail.

If you ignore these calls, you may be prompted to provide personal or financial information or be defrauded out of thousands of dollars by a fake extended auto warranty.

If you receive a pre-recorded message about your car warranty when you pick up the phone, hang up. If you suspect it's your car dealership, call them back using their official number to confirm.

5. Gift card scams

Last year, a survey by AARP found that 26% of U.S. consumers received a gift card with no funds on it. Why is this happening?

Scammers can drain a gift card's balance before it is used by taking cards off the store rack, tampering with the protective strips, and stealing the bar codes. The fraudster replaces the strips with similar security tape to make the card appear untouched. They then enter the card's code into a program that tracks the retailer's website and alerts the scammer when someone buys the card. As a result, the card is worthless by the time it reaches its recipient.

Gift card scammers may advertise websites that allow you to check your gift card balance or exchange gift cards, but in reality, they use your gift card information to drain its balance.

Be cautious when purchasing gift cards and verify their authenticity before buying from untrustworthy sellers.

How to protect yourself from scams

To avoid falling victim to scammers' schemes, follow a few guidelines.

Here’s what Bruemmer recommends:

Don’t use a debit card

Credit cards provide more consumer protections than debit cards, making them a better option for most transactions. However, if your debit card is stolen, it may be challenging to recover the stolen funds.

The Fair Credit Billing Act (FCBA) safeguards you from credit card fraud and caps your maximum liability at $50. However, many card issuers go beyond this law by providing $0 fraud liability on unauthorized charges.

You can earn rewards with a credit card, such as the Chase Freedom Unlimited® Card, which offers 6.5% cash back on travel purchased through Chase Ultimate Rewards®, 4.5% cash back on drugstore purchases and dining at restaurants, and 3% on all other purchases. After the first year or $20,000 spent, you'll earn 5% cash back on travel, 3% on drugstore purchases and dining, and 1.5% on all other purchases. The American Express® Gold Card was picked by CNBC Select as the best travel card due to its generous returns on common spending categories, including restaurants, U.S. supermarkets, and airfare. Terms apply.

Be careful about letting your credit card out of your sight

Bruemmer advises that when giving someone your card, it's easy for them to use a skimming device, which reads the magnetic strip and stores the card's information. While it's unrealistic to expect restaurant staff to let you swipe your own card, Bruemmer suggests minimizing the times someone swipes it out of your sight by ensuring it's run through a machine in front of your eyes.

Only click links you trust

Be cautious of all links you receive, as fraudsters are becoming increasingly adept at concealing their phishing attempts.

Bruemmers advises that if someone wants him to click on a link they are sending, they should call him first and confirm its legitimacy.

Be cautious when receiving emails that claim to be from a reputable company but have a generic Gmail address or misspelled domain name. Watch out for poor grammar, threatening language, or urgent calls to action. For instance, be wary of emails that claim your bank account will be blocked and provide a link to click to avoid it.

If you receive an email or text that appears to be from a company, be cautious and verify its authenticity before clicking on any links or attachments. If you're unsure, contact the company directly through their official channels to confirm the legitimacy of the message.

Monitor your credit

If you've been a victim of fraud, you may find out about it when you check your credit report and see new accounts or addresses that you didn't open. While it's never pleasant to be scammed, the sooner you discover the fraud, the quicker you can take action.

You can obtain a free credit report annually from each bureau at AnnualCreditReport.com or subscribe to a credit monitoring service (due to the pandemic, you can receive free reports weekly until December 2023).

Experian Dark Web Scan + Credit Monitoring provides basic coverage, but for more comprehensive monitoring, you can pay for services like IdentityForce® UltraSecure and UltraSecure+Credit, which offer three-bureau credit monitoring and track your information on various sites and services, including the dark web, court records, and social media.

Don’t answer phone calls from unrecognized numbers

Sometimes, just answering the phone can lead to fraud when dealing with scammers.

Bruemmer has configured his phone to automatically send all calls from unknown numbers directly to voicemail.

Someone can use a voiceprint as a second factor of authentication with a financial institution or to authorize a transaction even when you're saying hello and giving your name, he explains.

Bottom line

Scams are becoming increasingly complex and exploitative, making it seem like your financial security is always under threat. However, you can safeguard yourself from most scams simply by remaining alert and cautious.

Be cautious when making financial decisions under pressure from someone you don't know. If something seems too good to be true, trust your instincts. Keep in mind that preventing damage from identity fraud and financial scams is easier than fixing them.

Stay up to date with Select's in-depth coverage of personal finance, tech and tools, wellness, and more by following us on Facebook, Instagram, and Twitter.

For rates and fees of the American Express® Gold Card, click here.