Within my own client base, the money lost to scams each year reaches tens of thousands of dollars, and the problem is getting worse.
The pace and sophistication of these online scams is accelerating rapidly with the incorporation of AI tools. It is more difficult than we could have imagined to separate a scam attempt from reality.
Worldwide, the Global Anti-Scam Alliance estimates that $442 billion was lost to online scams in the past year. That figure rivals the estimated value of the entire global illegal drug trade, and it does not include the cost of prevention or investigation. AI is accelerating the problem by making fake voices, videos, and messages convincing at almost no cost.
My role is to get clients to pause before acting on anything unusual, even when every emotion says to act fast. Once a second person trained to spot fraud starts asking questions, most scams unravel. Scams prey on our powerful emotional and naturally responsive patterns of thinking. Former federal prosecutor Preet Bharara has observed that some victims never fully accept they were scammed, even later while the case is being prosecuted.
When something feels urgent, follow these steps:
- Stop. Do not pay, click, or reply. The most important first step is to interrupt your thinking that is telling you to respond.
- Hang up or close the message. Contact the person or company directly using a number you already know.
- Call someone experienced in fraud before moving any money. My clients can call me.
- Wait. Treat urgency itself as the warning sign. Legitimate requests can wait one day.
Urgent bills, remarkable investment opportunities, and relatives who suddenly need money are the most common triggers. Go against your instincts and get a second person’s input.
