As technology evolves, scammers and fraudsters continue to find new ways to exploit unsuspecting people, particularly vulnerable populations like older adults. According to the Federal Communications Commission (FCC), the top five robocall scam trends last year were: scams related to student loans, mortgages, auto loans, and debt relief; fraudulent insurance and healthcare calls; impersonation of government officials (such as IRS representatives during tax season); credit and credit card scams; and scammers claiming they could add or remove a business from Google search results.
While phone scams may incorporate new elements and reflect current trends, they tend to rely on the same core tactics. Understanding how those tactics work can help you avoid identity theft and better manage suspicious calls. Read on to learn how to spot the warning signs, and how tools like PeopleFinders’ reverse phone lookup can help you identify unknown callers before it’s too late.
The True Cost of Scam Calls
Scam calls have become a major issue worldwide, and the United States is no exception. According to Truecaller’s 2024 U.S. Spam and Scam Report, the financial impact is significant: one in four Americans reported losing an average of $452 to scams, totaling over $25.4 billion. These losses have been driven by increasingly sophisticated scammers who now use artificial intelligence and data from social media to carry out highly targeted spear phishing attacks that are effective even at lower volumes and can take advantage of the flood of political calls and texts that accompany election cycles.
According to Hiya’s 2026 Voice & Spam Call Insights, the number of people losing money to AI-powered deepfake scams has remained steady year over year. On average, scam calls cost victims $800 in losses, and one in three callers report receiving calls that involve deepfakes. Beyond the financial toll on individuals, these calls drain valuable resources from law enforcement agencies and businesses that must spend time and money investigating and mitigating their effects, and erode trust between businesses and their customers, with broader ripple effects on the economy. Hiya’s report also found that consumers believe their phone operator should cover all or a portion of their financial losses due to phone scams.
Types of Scam Calls to Look Out For
As technology continues to evolve, so do the methods used by fraudsters to scam unsuspecting victims. One of the most prevalent forms of fraud today is phone scams. According to the latest Consumer Sentinel Network Data Book by the Federal Trade Commission (FTC), there were 2,247 telephone and mobile service scams reported in 2024, with 42% of people reporting financial losses where the median loss was $200.
Here are some of the most common types of phone scams the FTC warns about:
- Financial services and assistance scams: Robocalls related to mortgages, student loans, debt relief, and cryptocurrency investment scams are quite common. Scammers generally demand immediate payment for overdue loans or phish for sensitive information such as personal or bank account details.
- Fraudulent services: These are generally robocalls offering fraudulent services, such as insurance or healthcare coverage. Some scammers also pose as representatives who can manage your online presence, promising to boost or suppress search engine listings for a fee despite having no actual ability to do so.
- Bank and credit card company scams: Scammers leave a voicemail stating they are from your bank or credit card issuer, prompting you to call back. They may also send text messages warning of unauthorized account access or suspicious account activity. The goal is to obtain your PIN, authentication codes, or other account information.
- Prize, lottery, and travel scams: Callers promise prizes, vacations, or lottery winnings but require upfront payments for taxes, fees, or registration that never result in the promised reward. In timeshare resale scams, callers may claim to have a buyer lined up for your property in exchange for an advance fee.
- Government impostor scams: Scammers impersonate government officials such as IRS agents to steal personally identifiable information or demand payment for supposed back taxes, often threatening legal action. These are especially common around tax season. It is worth noting that the IRS will never call to demand immediate payment or threaten legal action over the phone.
- Tech support scams: Scammers pose as tech support agents from well-known companies, claiming your device has a problem that requires remote access to fix. Granting that access can give them control over your device and the sensitive information on it.
Charity scams: Fraudsters pose as representatives of legitimate charitable organizations to solicit donations, often taking advantage of recent disasters or newsworthy events to make their appeals seem more credible.
How to Avoid Falling Prey to Scam Callers
Scammers and fraudsters tend to follow the same playbook. Knowing how to identify their tactics can go a long way toward protecting yourself. Here’s what to keep in mind:
- Don’t fall for promises of prizes: As noted above, scammers often lure people into giving away personal information by claiming they’ve won a prize or have been selected to receive something for free. Remember that if you’re asked to pay or provide sensitive information such as your Social Security Number to claim a reward, there is no prize.
- Don’t believe threats of arrest: If someone calls claiming to be from a law enforcement or federal agency and demands payment to avoid deportation, arrest, or fines, hang up. Real law enforcement will not call to threaten or pressure you.
- Don’t feel pressured to make on-the-spot decisions: A legitimate business offer will come with time to consider it and additional information in writing upon request. Urgency is a red flag.
- Don’t pay with gift cards, wire transfers, cryptocurrency, or payment apps: If these are the only payment options available, treat it as a warning sign. Legitimate companies offer multiple payment methods. These payment options are particularly favored by scammers because they are difficult or impossible to reverse, unlike credit card payments.
- Don’t share sensitive information over the phone: Be wary of any unsolicited call requesting your Social Security Number or other personal details. No legitimate government agency will demand them unexpectedly or use them as a condition of avoiding a threat. When it comes to your bank, sharing your PIN over the phone is never acceptable under any circumstances. If you receive an unexpected call from someone claiming to be your bank, hang up and call the number on the back of your card or visit their official website instead.
- Just hang up: If a call feels off, hang up. Avoid engaging or pressing any numbers to speak to an agent or to be removed from a calling list, as this can signal that your number is active and result in even more unwanted calls.
- Don’t trust your caller ID: Scammers can use spoofing to manipulate caller ID to display any name or number they choose, including those of government agencies or local numbers. Just because a call appears to come from a familiar or official source does not mean it actually does.
- Consider call blocking or labeling tools: Registering with the National Do Not Call Registry can reduce unwanted calls from legitimate telemarketers, but scammers operate outside the law and will not be deterred by it. Call blocking and call labeling tools offer a stronger layer of defense against those bad actors. The right option will depend on your phone type, whether it’s a cell phone, landline, or VoIP, so check what your carrier or service provider offers and look into well-reviewed call blocking apps for your device.
Consider using a reverse phone search to identify unknown callers: If you receive a call from an unfamiliar phone number, resist the urge to call back before doing a little research. A reverse phone number lookup service like PeopleFinders can help you identify who is on the other end of the line, putting a name and location to an unknown number so you can determine whether a caller is legitimate before engaging with them.
Conclusion
Phone scams are not going away anytime soon, but being informed is one of the most effective defenses available. Scammers rely on confusion and urgency to catch people off guard, and understanding how they operate goes a long way toward taking that advantage away from them. By knowing what to look out for and taking simple precautions, you can significantly reduce your risk of becoming a victim.
When in doubt, remember that you don’t have to respond to any call on the spot. Take your time, trust your instincts, and use the tools available to you. PeopleFinders aggregates data from one of the most comprehensive collections of public records available, with over 120 billion entries that can help you research unknown callers and make more informed decisions about who you engage with. If an unfamiliar number has you second-guessing yourself, our AI reverse phone lookup tool can give you the clarity you need.
