Ransom Scams: What They Are and How to Protect Yourself

Have you ever received a call that sent you into panic, causing you to overreact or do something you later regretted? Most of us have, which is why fraudsters use this method to take advantage of victims in heightened emotional states.

What’s a Ransom Scam?

Ransom calls are phone calls in which fraudsters use fear tactics to trick victims into sending funds in exchange for someone or something. Often, fraudsters call and claim to be holding a loved one hostage, and that the only way to release them is by sending large sums of money. These scams rely on emotional intimidation, manipulation and fear tactics as a means of control. These scams are quite common, with 1 in 5 Americans reporting losing funds to phone scams in 2023.

With the capabilities and prevalence of AI growing exponentially, ransom scams are becoming one of the most dangerous and weaponized tools of fraud. The unique ability to scale and personalize ransom calls makes AI a handy tool for fraudsters. Fraudsters use AI tools to mimic voices and personalities of victims’ loved ones, making it more difficult for victims to detect the fraudulent activity before it’s too late. Consequently, AI is responsible for a sheer increase in fraud attempts, leading to a higher rate of success. To quantify this, the U.S. lost over $2.7 billion to imposter scams in 2023.

Impact and Aftermath

Ransom scams often have a cumbersome negative impact on victims. Psychologically, it can create feelings of shame or embarrassment for victims as they come to terms with the fact that such a small mistake could result in such weighty financial consequences. As always, it important to remember that the victim is not to blame and shouldn’t feel ashamed of the criminal activity.

Financially, it can be extremely difficult to recoup any funds that were lost to ransom scams, due to fraudsters using untraceable payment methods. This can significantly set victims back financially, and even cause strained relationships amongst friends and family.

How to Protect Yourself

So, what steps can you take to protect yourself from ransom scams?

To prevent unwanted calls, consider using apps that block spam calls. The next tip, though simple, is extremely effective. Always exercise precaution when answering calls from unknown callers. Ask yourself the following questions to remain calm and determine if the call seems legitimate.

• Have you taken a deep breath?
• Do you recognize the caller ID or phone number?
• Have you tried contacting the victim to see if they’re safe?
• Have you notified the police?

As soon as you detect that something’s not right, hang up and consider blocking the number. Remember to be careful and never share personal information like your social security number, credit card information, or passwords in situations that don’t feel quite right. Doing so could result in your identity, accounts, or finances being compromised.

Lastly, report any suspicious activity to the authorities, including the Federal Trade Commission or the FBI’s Internet Crime Complaint Center.