Episode Transcript
[00:00:00] Speaker A: From the desk of Miles, your favorite introman for behind the Scams.
Ever feel like everyone you know has a scam story?
You might be right.
The State of scams in the United States of America 2025 report by the Global Anti Scam Alliance GASSA reveals a shocking truth.
70% of American adults fell victim to fraud last year, resulting in a staggering $64.8 billion stolen.
What's more alarming is how AI, with its new sophistication in voice cloning and deep fakes, is escalating these threats.
This isn't just about an email hoax. It's a national security crisis.
Nick and sue are about to deep dive into this, so get ready for an episode that will truly open your eyes.
It's behind the Scams. And it starts now.
[00:00:52] Speaker B: Hello and welcome back to another episode of behind the Scams. I'm your host, Nick, and as always, I'm joined by my wonder wife and co host, Sue.
[00:01:03] Speaker C: It's time for another episode of behind the Scams because unfortunately, the scammers never take a vacation. I've been looking forward to this one all week. So what have you got lined up for us this time, Nick? I have a feeling it's going to be both shocking and eye opening.
[00:01:20] Speaker B: You've got that right, Sue. Today we're diving into something incredibly timely and frankly, a bit unsettling for everyone.
We're going to break down the latest State of Scams in the United States of America 2025 report by the Global Anti Scam alliance, or GASA. This isn't just a dry statistical analysis. It's a stark, almost alarming look at the current landscape of fraud, its evolution, and the very real human and economic toll it's taking across the nation.
I have to warn our listeners and you, some of these numbers are truly shocking, even for someone with my background.
[00:02:02] Speaker C: Oh really? That sounds intense. I appreciate the heads up. Lay it on me. I'm ready to be both informed and I suspect, a little bit horrified. What's the biggest, most alarming takeaway from this report that our listeners absolutely need to hear right now? Give us the headline before we dive into the details.
[00:02:23] Speaker B: Alright, buckle up because this is going to be a tough pill to swallow for many.
The report starts with this absolute bombshell that should make everyone sit up and listen.
70% of American adults fell victim to scams in 2025. Let me repeat that, Sue. 70%.
That means if you're listening to this and you haven't been targeted by a scammer this year, you are Statistically speaking, in the minority, this isn't a fringe issue affecting a few unlucky individuals in isolated incidents. It's a pervasive problem that has now reached epidemic proportions, impacting nearly every single household across the country. It's no longer if you'll encounter a scam, but when and increasingly, how often.
[00:03:13] Speaker C: Wow, that's genuinely surprising, Nick.
70%. That's almost everyone. I mean, I know scams are common. We talk about them all the time on the show, and I feel like I'm pretty aware. But that high, That's a staggering number. That really makes you stop and think about how vulnerable we all are. And when they say fell victim, what exactly does that encompass? Is it strictly losing money, or does it include other types of compromise that might not be immediately obvious? Like. Like identity theft or just being emotionally exploited?
[00:03:49] Speaker B: That's a crucial distinction, sue, and a very good question. To clarify, fell victim here means they were successfully exploited in some measurable way. Yes, often financially, whether it's a few dollars or a life savings, but also by having their personal information compromised, leading to things like identity theft or being manipulated into actions they wouldn't normally take, such as unknowingly aiding a larger fraud scheme or providing access to their devices. It's a broad category designed to capture the full spectrum of harm. But the key is that the scammer achieved their objective. And it's not just a few dollars here and there, which is often the public perception of a small scam. The cumulative effect is staggering.
Speaking of staggering, the financial impact alone is absolutely devastating.
The report states that criminals stole an astounding $64.8 billion from Americans in just one year. That's billion with a B for our listeners to truly grasp the scale. To put that in perspective, that's more than the entire gross domestic product of some smaller nations. It's a massive wealth drain on our society.
[00:05:07] Speaker C: Oh, no. Really?
$64.8 billion. That's an unimaginable sum of money, Nick. It's truly sickening to think about. I mean, we're talking about countless lives being upended, retirements disappearing, emergency savings accounts being emptied. It must be devastating. What was the average loss for each victim who actually fell for one of these scams? Because that number, I think, really personalizes the crisis and helps our listeners understand the direct financial impact on individuals and families.
[00:05:45] Speaker B: It certainly does, sue, and it's a figure that resonates deeply with many. The average loss for each victim was $1,087. Think about that for a moment. Over $1,000 on average lost to these fraudsters. For many families, that's not just pocket change. It's a significant amount of disposable income gone. A utility bill they can't pay, a week's worth of groceries suddenly out of reach, or even a desperately needed car repair that gets postponed, leading to more issues down the line. It's not trivial money by any stretch, and it hits people where it hurts the most, often at times when they can least afford it, pushing them into further financial precariousness.
[00:06:28] Speaker C: That must have been incredibly tough for so many families, especially if they were already struggling financially before the sc.
It's not just the direct financial hit, but the emotional one too, I imagine. The stress, the feeling of foolishness, the immense sense of violation and perhaps even embarrassment that prevents them from talking about it. That just compounds the problem. Creating a spiral of negativity.
[00:06:54] Speaker B: Exactly. The emotional fallout is a huge, often unacknowledged part of this, and we'll delve into that later in the episode, but because it's truly significant.
But here's another figure that really hammers home the sheer scale of the problem and the relentless nature of these criminals. The average American now encounters a scam attempt 377 times per year. Let that sink in for a moment. 377 times?
[00:07:22] Speaker C: Wait, hold on a second.
377 times?
Nick, are you seriously telling me we're basically under constant, almost daily attack? That's nearly one scam attempt every single day. That's utterly exhausting to even think about it, honestly. Almost sounds like the plot of a bad TV movie where the protagonist is just overwhelmed by a seemingly endless horde of villains. Or, you know, a spam folder that just keeps growing exponentially.
Unbelievable. Although, sadly, not unbelievable enough anymore.
[00:07:59] Speaker B: It does, doesn't it? But it's our grim reality. And these aren't random, isolated attacks. The report clearly states that scammers are highly strategic. They are meticulously targeting the platforms where people are most comfortable and, crucially, least suspicious. They're relentlessly probing for vulnerabilities in our daily digital interactions, finding those cracks in our defenses where we least expect them, making it incredibly difficult for the average person to stay vigilant. 24. 7.
[00:08:29] Speaker C: I would have fallen for that, too. I mean, my guard is definitely down when I'm just scrolling through social media or casually checking my personal email or even responding to a text from an unknown number. It's not like I'm expecting a scam to pop up there. You know, it really makes you think Think about how many small attempts we shrug off or just delete without really considering the sheer volume and the bigger picture of what these criminals are doing. It's a constant siege on our attention and our wallets.
[00:09:01] Speaker B: Exactly, Sue. It's a sophisticated numbers game for them, but a deeply personal and often devastating one for us. And the report makes it unequivocally clear the numbers are getting worse, not better, year over year.
The threat is escalating. And that leads us directly into our next point, why these scams are getting smarter.
[00:09:22] Speaker C: So, beyond the sheer volume of attempts we just discussed, Nick, are these scammers just getting more aggressive or are they actually getting significantly smarter too? I mean, 377 attempts a year, that could just be pure volume. But is there a new, more advanced layer of sophistication that we as consumers really need to be aware of?
[00:09:48] Speaker B: They are absolutely getting smarter, Sue. And that's perhaps the most frightening aspect of this report.
It highlights that the real danger isn't just their frequency, but their increasing sophistication.
Criminals are now leveraging artificial intelligence, or AI, to create scams that would have seemed utterly impossible just a few years ago. We're talking about a paradigm shift in how fraud operates, moving from simple phishing to incredibly convincing digital deception.
[00:10:22] Speaker C: AI.
Oh, really?
That's terrifying, but also like something out of a sci fi movie.
What kind of AI applications are these criminals deploying that we, as everyday users should be worried about? Give us some specific examples. Because AI can feel so abstract, to.
[00:10:44] Speaker B: Many, we're talking about some truly advanced stuff. Firstly, voice cloning. They can clone your voice or mine with just three to five seconds of audio. Think about that for a moment. Someone could record a short clip from a social media video, a voicemail, or even just a brief public interview, and then use AI to generate entire convincing conversations, impersonating us perfectly. It's not just a similar voice, it's your voice asking for something specific.
[00:11:19] Speaker C: I didn't see that coming.
My voice.
So a scammer could potentially call one of our kids, sound exactly like me, perfectly mimicking my tone and inflections, and ask them for money or sensitive information, claiming it's an emergency scenario.
That's deeply disturbing, Nick. It's a total invasion of privacy and trust that I can barely comprehend. I would have absolutely fallen for that too, if it's sounded like a frantic call from you or the kids.
[00:11:53] Speaker B: Precisely. The emotional manipulation here is off the charts, exploiting our deepest fears and connections. And it's not just voices. They're also creating Incredibly convincing deepfake videos in real time. Imagine you're on a video call thinking you're talking to a loved one, a colleague, or even a bank representative.
But it's an AI generated deep fake. The visual and auditory accuracy is frightening, making it almost impossible for the human eye and ear to discern from reality, especially when caught off guard.
[00:12:31] Speaker C: The only thing missing from this scam was a laugh track. That's truly next level deception. It makes you paranoid about every single call or video chat, doesn't it?
You start questioning if the person on the other end is even real, if what you're seeing and hearing is legitimate. It's an erosion of digital trust that has profound implications for our daily interactions.
[00:12:58] Speaker B: Exactly. And the report also mentions tools like Fraud GPT.
This is essentially an AI tool that has democratized advanced fraud techniques.
Meaning criminals no longer need to be tech experts, coders, or even particularly clever to pull off incredibly convincing scams. This lowers the barrier to entry significantly for aspiring fraudsters. The direct result, impersonation scams will continue to grow exponentially.
And they are already among the top five of scam typology's reported in this survey.
[00:13:37] Speaker C: Fraud GPT.
Wow, that makes so much sense now.
So literally anyone with a little bit of tech knowhow can just download a program or subscribe to a service and start creating sophisticated scams that previously required a specialized team. It really levels the playing field for the bad guys, doesn't it?
That's a serious and rapidly escalating problem that we need to address.
I guess this is what you meant by industrialized theft earlier.
[00:14:09] Speaker B: Exactly Sue. It's industrialized theft. A highly organized tech driven industry constantly innovating and leveraging cutting edge technology to exploit vulnerabilities in our human psychology and digital systems. The sheer creativity and dedication these scammers show sometimes. I honestly think these con artists should get Oscars for the drama they put on to trick people. If only they use that incredible ingenuity for good, we'd probably have flying cars in colonies on Mars by now. It's an absurd thought, but the reality is just as absurd. So with these increasingly smarter scams utilizing AI and sophisticated social engineering, where exactly are these sophisticated criminals finding us? The report lays out the most common communication channels. The exploit to reach potential victims. Knowing these specific vectors can help us be more vigilant and protect ourselves.
[00:15:08] Speaker C: I'm guessing email probably right? I still get so many suspicious emails every day. Even with all my filters and my attempts to be careful, it feels like a constant battle just keeping my Inbox clean and identifying what's real from what's fake. So email would be my first guess.
[00:15:28] Speaker B: Email is definitely a major channel, Sue. And you're right to be vigilant there. Coming in at a very high 55% of scam attempts. But the leader, the absolute primary channel for scam attempts, according to the report, is text messages, accounting for 56%.
They're coming through the very channels you use every day, often the ones you trust the most, precisely because they feel personal and immediate.
[00:15:54] Speaker C: Text messages, wow, that's genuinely surprising. I always, always think of email as the primary channel because it's so easy to send mass messages and links, but you're absolutely right. My guard is probably down more with the text. Who expects a scammer to text you like a friend? Or with what looks like an official alert from your bank or a package delivery? I would have fallen for that too, if it looked legitimate enough and caught me off guard.
[00:16:25] Speaker B: Exactly. It all comes back to their core strategy of targeting platforms where people are most comfortable and crucially, least suspicious. They want to catch you off guard, blend in seamlessly with legitimate communications, and bypass your natural defenses by leveraging your trust in the medium itself. It's about exploiting familiarity and creating a sense of urgency.
[00:16:51] Speaker C: Okay, so that covers text and email. What about online platforms, Nick? Like social media, I spend a fair amount of time there and I see a lot of strange ads and messages pop up.
Are those big targets too? And if so, which ones should we be most wary of?
[00:17:09] Speaker B: Absolutely, Sue. And the numbers are telling. The report specifically calls out the top online platforms for scam encounters. Gmail is number one at 45%, which aligns perfectly with the email data we just discussed. Then Facebook follows closely at 41%, Instagram at 28%, TikTok at 21% and WhatsApp at 19%. Notice a pattern there? These are all platforms with heavy direct message functionality, making them prime targets for those personalized AI driven impersonation scams we talked about.
[00:17:44] Speaker C: That's a comprehensive list of incredibly familiar names, Nick. It's almost impossible to avoid them in our daily lives because they're so central to how we communicate and connect. So even though we think we being careful and know what to look for, we're still incredibly exposed just by using the Internet and communicating with others regularly. It's exhausting just thinking about the constant vigilance required.
[00:18:11] Speaker B: Precisely, Sue. These platforms are deeply integrated into our daily routines and scammers know it. They exploit our inherent trust in these channels, knowing we're more likely to let our guard down when communicating on what feels like a personal or familiar medium. The report even specifically highlights that 81% of all scam attempts in the last 12 months occurred on platforms to have a direct message function. That's a staggering confirmation of their preferred method.
[00:18:41] Speaker C: 81%.
Wow.
That's truly a staggering confirmation of what you just said, Nick.
It just highlights that direct personal communication, even if it's through a digital medium, is their most effective weapon because it bypasses so many of our usual defenses. Honestly, if scammers worked this hard at a real job, they'd all be millionaires by now without having to resort to these awful deceptive tactics.
[00:19:10] Speaker B: You couldn't make this stuff up, except, well, the scammers certainly did. And they continue to. And they're doing it with increasing success because they understand human psychology and where our vulnerabilities lie. In the digital world, it's a constant cat and mouse game, but with real world consequences.
Beyond the sheer number of victims and the billions stolen, the gossip report delves into something equally critical. The hidden costs and profound, often devastating impact of these scams. And it's not just about the money lost from bank accounts or the compromised credit card numbers. The emotional and psychological toll on victims is often much more damaging and long lasting.
[00:19:53] Speaker C: I figured as much, Nick. Financial loss is only one piece of it, and often it's the easiest to quantify. But the emotional tool, that's where the true pain lies.
What are some of the other significant impacts people are reporting after falling victim to a scam? I imagine the stress alone must be overwhelming.
[00:20:14] Speaker B: You're absolutely right, Tsu. The report paints a very clear picture. Two thirds of scam victims reported significant stress following their experience.
But it goes deeper than just temporary stress. Many develop lasting anguish about digital interactions, becoming hesitant to use online banking, shop online, or even engage on social media. It fundamentally changes their relationship with technology, their sense of security, and their ability to trust online systems.
[00:20:44] Speaker C: That makes so much sense now. It's not just a one time event. It has these profound long term psychological effects. People become genuinely paranoid about almost any digital interaction. They're hesitant to open emails and answer calls from unknown numbers, or even engage with online communities after being scammed. That kind of digital anxiety can be crippling, affecting their ability to work, socialize, and just live comfortably in our increasingly connected world.
[00:21:18] Speaker B: Exactly. It erodes their sense of security and trust in the digital world, which is increasingly intertwined with our real lives. And the ripple effects go even further, impacting the broader economy in tangible ways. The report found that 12% of victims reported having to cut back on normal spending things like groceries, entertainment, or even essential medical expenses. This isn't just a personal loss. It has macroeconomic consequences.
[00:21:45] Speaker C: Oh no. Really?
So it's not just the direct theft from the individual, but it forces people to tighten their belts and reduce their spending, which then affects local businesses, the retail sector and the economy as a whole. It truly creates a negative domino effect across society. That's a huge societal cost we rarely consider when we just look at the individual losses it is.
[00:22:11] Speaker B: It truly affects our entire digital ecosystem and our collective trust in it, which is the foundation of any functioning economy.
And speaking of money, sue, what are the most common payment methods scammers are using to extract these funds? Because I think a lot of people still assume it's all about untraceable cryptocurrency.
[00:22:29] Speaker C: Now, that's what I was thinking. Exactly, Nick. I always hear about crypto too. It feels like the wild west of finance, unregulated and anonymous. So it makes perfect sense that scammers would flock there. But if that's not the main method, what is? And is it something we use every day?
[00:22:49] Speaker B: Forget what you've heard about cryptocurrency being the scammers exclusive payment method of choice. Su the reality, as this report highlights, is far more troubling because they're successfully exploiting traditional everyday channels.
Debit cards account for a whopping 30% of cases, making them the top method. And PayPal is a close second at 25%.
These are methods many people use for legitimate transactions daily, which means our guard might be down.
[00:23:24] Speaker C: I would have absolutely fallen for that too, Nick. I mean, cryptocurrency sounds so complex and niche, but Debit cards and PayPal are ingrained in our everyday lives. It's how we pay for coffee, groceries, online shopping that's so much harder to track and get back, isn't it? It feels like the lines between legitimate and fraudulent transactions are just blurring, making it almost impossible to discern.
[00:23:49] Speaker B: Precisely. It proves that no payment method is truly safe from their exploitation. And scammers are incredibly adaptable and opportunistic. They're going to leverage whatever channel or or method is most convenient, most trusted by the victim, and most effective for them to disappear with your funds, often before you even realize what's happened. This sounds like something you'd expect from a comedy sketch, except it's real.
So given the pervasive nature of these scams, their significant financial impact, and the hidden Emotional costs. Let's shift our focus to reporting and recovery. Are people actually reporting these scams, Sue? And is there any hope of getting their money back or seeing justice serve for these devastating losses?
[00:24:40] Speaker C: I truly hope so, Nick. I imagine it's an incredibly difficult thing to do, especially with the stress, embarrassment and anger involved. It takes a lot of courage to admit you've been scammed, let alone take the offer, often complicated and disheartening steps to report it to the right authorities or financial institutions.
[00:25:01] Speaker B: The report actually has some encouraging data here. Surprisingly, it indicates that 74% of those exposed to scams in the US reported an encounter in the last 12 months. That's a high percentage, and it shows people are trying to fight back and make their experiences known. On average, individuals reported 4.2 times per person, which further indicates multiple encounters and a sustained effort to report.
[00:25:29] Speaker C: That's actually much higher than I expected, Nick. Good for them for trying to get help and make their voices heard. It takes a lot of grit to do that. But does all that reporting actually translate into getting money back? Or is it more about just documenting the issue for a statistical purposes without real individual benefit?
[00:25:49] Speaker B: Well, the report shows that 82% of those who lost money did report their scam to a payment service. That's a crucial first step, as payment services are often the best route for potential recovery due to their direct involvement in the transaction. And here's some cautiously positive news offering a glimmer of hope. 44.4percent were able to at least partially recover their money.
So while it's not a full recovery for everyone, reporting certainly increases your chances significantly.
[00:26:22] Speaker C: Okay, 44% isn't exactly amazing, but it's definitely not nothing. At least a good portion of victims are getting some of their money back, which is certainly better than zero. It proves that reporting can make a difference.
What about the other half who didn't recover anything? And crucially, what prevents people from reporting in the first place if it offers some hope of recovery?
[00:26:47] Speaker B: The report sheds significant light on those barriers, which is incredibly important for improving prevention and support systems. A substantial percentage, 45% to be exact, cited uncertainty as a primary reason. They simply weren't sure if it was truly a scam or crucially, they didn't know who to report it to. That's a huge knowledge and accessibility gap in our systems. And a massive 66% cited a perceived lack of importance, believing their report wouldn't make a difference or that no action would be taken.
[00:27:20] Speaker C: That makes me so sad, Nick. They're already victims feeling vulnerable and perhaps foolish, and then they're left feeling like it's not worth reporting, or they're too embarrassed to come forward and face judgment. That's a huge psychological barrier, compounding the trauma of the scam itself. We desperately need to make the reporting process clearer, easier, and more empathetic for people.
[00:27:45] Speaker B: It is, and that emotional component is absolutely vital to address.
A smaller but still significant percentage, 11%, cited outright emotional, bitter barriers, like being afraid, fearing they wouldn't be believed, or being too ashamed and embarrassed to report the incident. This is precisely where robust victim support systems, national helplines, and widespread public awareness campaigns become absolutely crucial to building trust and encouraging reporting.
[00:28:16] Speaker C: I can only imagine how hard that is. It's a tough situation all around.
We hear about so many different types of scams every day. Sometimes I think these con artists should get Oscars for the drama they put on. Some people binge Netflix scammers binge new ways to trick people. And unfortunately, they're often very good at it.
[00:28:37] Speaker B: Let's pivot to a particularly sobering aspect of the report, one that elevates this discussion beyond individual consumer protection and even beyond typical law enforcement challenges. This report, echoing sentiment from respected organizations like the Aspen Institute, makes it incredibly clear that fraud and scams are no longer just a consumer protection issue. It is in fact, a full blown national security crisis.
[00:29:05] Speaker C: A national security crisis? Wow, Nick, that's an incredibly strong statement, and it really shifts the perspective.
How exactly do individual scams even collectively escalate to that level of threat for an entire nation? It's hard for me to connect those dots immediately, but I'm curious to hear the connection.
[00:29:26] Speaker B: It's a critical connection, sue, and one that demands our urgent attention. The Aspen Institute Financial Security program highlights how transnational criminal organizations are at the heart of this. They use fraud and scams to generate billions of dollars in illicit revenue annually. These billions seism directly from American households and businesses are then used to fund a terrifying array of global threats, from drug cartels and human trafficking operations to sophisticated cyber attacks on our critical infrastructure.
[00:30:01] Speaker C: Oh no. That's utterly devastating to hear, Nick.
So the money stolen from everyday Americans, from our neighbors, our friends, even our own families, is literally funding major organized crime and global threats that impact everyone. I didn't see that coming at all. That's a profound and sickening realization. That changes how I view every scam attempt.
[00:30:26] Speaker B: Exactly, Sue. Senator Grassley recently called it industrial scale fraud and the national security crisis hiding in plain sight. He emphasized that we're inadvertently funding it. In 2023 alone. More than 21 million US adults were targeted directly or through a family member. These aren't petty opportunistic criminals operating in isolation. It's a systemic industrialized threat with far reaching consequences that undermine our astronauts security from within.
[00:30:58] Speaker C: That must have been incredibly tough for them and for the entire country. Honestly, to think that your personal loss is feeding these horrible global issues.
And beyond the financial drain and the national security implications, the emotional toll I imagine is severe beyond just the financial aspect. It's not just money, it's peace of mind. It's trust. It's security.
[00:31:24] Speaker B: It is. And the report is unambiguous. Here it states that 2/3 of scam victims report suffering severe long term emotional impacts, including heightened anxiety, chronic depression and even ptsd.
Scammers deliberately exploit trust, posing as loved ones, official agencies or familiar brands to confuse and and deceive. It's a deeply personal violation. A betrayal that leaves profound psychological scars that are often far harder to heal than any financial law.
[00:31:59] Speaker C: That makes so much sense now, Nick. It's more than just a transaction gone wrong. It's a trauma that fundamentally changes how people view the world and their place in it. Especially their digital interactions.
This isn't just about individual crime prevention anymore. It's about a much larger coordinated defense against organized crime and its devastating human cost.
[00:32:25] Speaker B: Right.
The task Force's strategy isn't just about crime prevention in the traditional sense. It's about defending vulnerable populations, cutting off funds for global criminal networks, and ultimately restoring trust in our economy and our digital infrastructure. This isn't just good policy, it's a moral imperative. The stakes, as you can clearly see, couldn't be higher for individuals and the nation as a whole.
So with all these sobering facts, the pervasive nature of scams, their growing sophistication with AI, and the profound national security implications.
What's next?
The Gassa report, along with insights from key partners like MasterCard, emphasized a rapidly escalating threat and lay out a strong urgent call to action for collective defense. We can't afford to be complacent.
[00:33:18] Speaker C: I can only imagine it's getting worse, Nick. With everything you've said about AI, voice cloning and deepfakes, it feels like we're constantly playing catch up with these criminals. And the technology they're using is just advancing so rapidly. It's hard to feel like we can get ahead.
[00:33:37] Speaker B: Absolutely, Sue. Scams are indeed evolving at an unprecedented pace. Driven by AI, advanced social engineering tactics, and increasingly complex cross border criminal networks. The tactics are more sophisticated and the stakes are higher than ever. Threat actors, for example, are shifting from traditional card phishing scams to highly elaborate e commerce scams like setting a fake merchant account and fake websites deceiving consumers into buying non existing goods or services.
[00:34:09] Speaker C: Wait, hold on a second. What happened next with those e commerce scams? Are they just taking your money for fake goods and disappearing? Or are they after something even more insidious and damaging than just that? That initial transaction?
[00:34:24] Speaker B: They're often after much more, Sue. They set up these fraudulent merchant accounts and fake websites deceiving consumers into buying non existent goods or services.
But the real end game is frequently to steal your payment credentials, your personal data, and then sell those stolen credentials on the dark web, compounding the damage. So it's a double whammy. Lost money and economy compromised identity that can lead to further fraud down the line.
[00:34:52] Speaker C: Unbelievable.
Although sadly not unbelievable enough anymore. The sheer audacity and layered deception.
So what's the financial sector like MasterCard doing to combat this rapidly evolving landscape of fraud, especially with these new AI driven tactics? What kind of defense are they putting up?
[00:35:15] Speaker B: They're taking a comprehensive, multi layered approach, which is absolutely crucial given the complexity. This includes deploying advanced technologies to help stop scams before they even happen, investing heavily in public private partnerships to share intelligence and best practices, and most importantly, empowering consumers through continuous education and awareness campaigns. Because as a report states, informed individuals are indeed the first, first and often best line of defense against these evolving threats.
[00:35:46] Speaker C: That makes so much sense now, Nick. Education is absolutely key. If people understand the tactics, the red flags and the channels scammers use, they're much harder to trick. But it still sounds like a massive, almost overwhelming global undertaking that no single entity, not even a huge company like MasterCard can tackle alone. It requires a unified front.
[00:36:12] Speaker B: It is, Sue. And that's precisely why the Global anti scam alliance GASA proposes 10 key recommendations to turn the tide against this global crisis. These aren't just suggestions, they're a comprehensive, actionable plan.
Things like launching unified permanent national awareness awareness campaigns to raise scam awareness broadly and consistently, ensuring everyone from children to seniors is equipped with the knowledge to identify and avoid scam.
[00:36:45] Speaker C: Those all sound like vital foundational steps, Nick. Awareness is definitely the bedrock of prevention. What else does GASA recommend to help victims who do fall prey and to prevent further future scams more effectively?
[00:37:01] Speaker B: From a systemic perspective, they suggest establishing national help lines for scam victims that are easily accessible online and by phone, and critically creating integrated victim support systems offering not just financial and legal aid, but also psychological help. Because as we discussed earlier, the impact isn't just financial. And the emotional and mental health toll is often devastating and long lasting. Requiring specialized support.
[00:37:31] Speaker C: That's so incredibly important, especially the psychological support. That must have been tough for so many victims feeling isolated and ashamed.
So beyond supporting victims, what about stopping the scams before they even reach us? What preventative incentives infrastructure are they proposing?
[00:37:53] Speaker B: They definitely cover that. Recommendations include building infrastructural protections with telecoms and tech providers to block scams at the network level before they even reach consumers.
Also, significantly improving fraud traceability across borders by requiring greater transparency from sellers, platforms and payment providers about the true origin and destination of funds.
And crucially, developing a global scam data sharing hub to detect cross border fraud in real time, enabling a rapid, coordinated response.
[00:38:30] Speaker C: Wow. That's a comprehensive and incredibly ambitious approach.
It really takes a village, or in this case, a global alliance of governments, tech companies and financial institutions to combat these sophisticated criminal networks. Those data sharing hubs sound like a critical piece of the puzzle. Allowing for a proactive rather than reactive defense.
[00:38:56] Speaker B: Exactly. It's all about strengthening cooperation and accountability across the board. They also recommend making service providers responsible and liable for fraud committed through their platforms, which is a big one, as it incentivizes proactive measures and enabling preventative action, allowing providers to warn, block and take down fraudulent activities without excessive liability risk. Fostering a safer digital environment.
[00:39:25] Speaker C: I think the one about service providers being responsible is especially important. They're often the first point of contact for these scams, the platforms where the fraud originates, and they have the technical capability and resources to intervene effectively. That makes so much sense. Now, what's the final overarching recommendation for our listeners to consider?
[00:39:49] Speaker B: The final recommendation is a strong one. To create a global scam investigation and prosecution network to actively target organized fraud groups across jurisdictions. Because as we've established, these criminals do don't respect international borders or legal systems. So their response needs to be global, coordinated and relentless with shared intelligence and resources to bring them to justice.
[00:40:16] Speaker C: That makes perfect sense, Nick. These are transnational organizations, so the response absolutely needs to be global. It's like a worldwide game of Whack a Mole, but with real money and real lives at stake.
[00:40:30] Speaker A: And.
[00:40:30] Speaker C: And the moles are constantly getting smarter. This sounds like something you'd expect from a comedy sketch. Except it's real and it's devastatingly effective for the criminals.
[00:40:40] Speaker B: Indeed, Sue. Ultimately, protecting consumers isn't just about protecting individual wallets or identities. It's about securing our entire digital future, maintaining trust in our economy and our institutions, and safeguarding society from organized crime that profits from human vulnerability.
It's a monumental battle, but one we must fight on many fronts together.
That's a wrap on today's incredibly eye opening and at times sobering discussion on the State of Scams in the United States of America 2025 report.
Thank you for joining us on behalf of the Scams. Stay sharp out there everyone, and remember.
[00:41:27] Speaker C: Keep your guard up because scammers never sleep. We'll be back soon with more scam stories and expert insights, but until then, don't let the fraudsters fool you. Stay safe, stay informed, stay alert, and we'll catch you next time on behind the Scams.
[00:41:47] Speaker A: That's all for this episode of behind the Scams with Nick and Sue.
Today we unveiled the alarming truth from the State of Scams in the United States of America 2025 report by the Global Anti Scam Alliance GASA.
A staggering 70% of American adults fell victim to scams costing an unprecedented $64.8 billion.
We explored how AI, through voice cloning and deepfakes, is escalating these threats, making them a national security crisis, according to the GASSA report.
Remember, reporting scams is vital and gas's recommendations offer a path for collective defense, including increased public awareness and infrastructural protections.
Stay smart, stay safe and we'll catch you next time.
