International Fraud Awareness Week | What We Can Do?

Every November, International Fraud Awareness Week serves as a great reminder for professionals and the public alike to heighten their awareness in the ongoing fight against fraud.¹ As criminals continue to find new and more intricate avenues to commit fraud, it’s essential to understand not only the latest data but also the strategies you can implement to defend yourself. The cost of fraud perpetrated against others can impact you as well, costs incurred by corporations can ultimately trickle down to consumers. These rising costs impact everything from interest rates to service fees, that is why it is important to not only practice good anti-fraud behaviors, but educate others to do so as well.

What Is Fraud?

Fraud is defined as the intentional act of deception for personal or financial gain. In financial advisory, fraud can mean misrepresentation, identity theft, cyber scams, or unauthorized transactions and can lead to severe financial damage. The SSA further describes fraud as “misuse of Social Security numbers or benefits through deceitful means”.³

The Growing Cost of Fraud

Fraud can cost organizations up to 5% of their annual revenues globally, totaling billions each year.⁴ The median loss per occupational-fraud case was $145,000 in 2024. ¹

In the U.S. alone, the SSA paid out over $126 billion in Social Security benefits in January 2025 and recognized $88.05 million in confirmed fraud cases.³ Meanwhile, improper payments within Social Security programs, including fraud, were approximately 1% of total benefit distributions, nearly $10 billion annually.^3,5 

The FTC’s Consumer Sentinel data showed U.S. consumers reported losing more than $10 billion to fraud in 2023. Federal Trade Commission. The FTC reported an even larger jump in 2024 with total reported losses reaching $12.5 billion, investment scams alone accounting for $5.7 billion of those losses.⁸

The Rate of Fraud 

Fraud rates remain a persistent challenge. According to the SSA’s Office of Inspector General, roughly 332,927 allegations were reported in 2024 alone, with the majority involving false personation (26.7%) and Social Security number misuse (23.9%).³ Direct deposit fraud now accounts for a significant proportion of SSA-related scams, mostly tied to changes in direct deposit information by phone.⁶ One piece of good news is that confirmed fraud makes up less than 0.01% of the agency’s annual budget.⁷

Common Mistakes That Lead to Fraud 

People frequently underestimate risks and make avoidable errors. The FTC warns that sharing too much personal information online or over the phone are the main gateways for identity thieves.^6,8 Using weak, repeated passwords and neglecting to review account statements further increase vulnerability.⁹ FINRA notes that failing to check broker credentials or verify investment offerings is another frequent pitfall.¹⁰ Always take advantage of FINRA's BrokerCheck (https://brokercheck.finra.org/) to determine the legitimacy of any financial professional before divulging any personal information. In Social Security scams, not enabling two-factor authentication or verifying the source of communications has led to significant financial losses.⁶

Protecting Yourself

To guard against fraud:

• Practice safe online behavior: Only open emails and links from trusted senders and use caution with popups and unknown websites.
• Limit what you share online: Keep personal details off social media and maximize privacy settings.
• Use strong passwords and passkeys: Employ a reputable password manager and enable biometric or multi-factor authentication whenever possible.
• Continuously monitor accounts: Review your banking statements daily and set up transaction alerts.
• Verify professionals and investment opportunities: Consult public registries and ask for written documentation before sharing information or committing funds. Verify all financial professionals with FINRA’s BrokerCheck. (https://brokercheck.finra.org/)
• Don’t make decisions in isolation: Seek a second opinion from an attorney or certified advisor when facing unfamiliar offers.¹¹
• Companies implement anonymous fraud-reporting hotlines: (fraud losses were 50% in organizations with those in place and 43% occupational-fraud cases were detected by tips) ¹
• Be vigilant and suspicious: Contact the FTC or SSA immediately if you receive suspicious communications.⁸

Fraud may be a global problem, but smart habits and strong safeguards make a decisive difference. Use International Fraud Awareness Week as a springboard to strengthen your own defenses and remind others to do the same.  As fraud evolves, so must our defenses. Consult trusted professionals and use technology wisely to protect your finances.

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Sources:

1. Association of Certified Fraud Examiners (ACFE), “International Fraud Awareness Week: Join the Fight Against Fraud.”
2. FINRA, “What Is Financial Fraud?”
3. U.S. Social Security Administration, “Social Security Fraud Overview,” Congress.gov, March 2025.
4. Association of Certified Fraud Examiners, “Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse.”
5. SSA Inspector General, “SSA Paid $71.8 Billion in Improper Payments 2015-2022,” July 2024.
6. SSA Blog, “Correcting the Record About Social Security Direct Deposit and Fraud,” April 2025.
7. Brookings Institution, “DOGE is disrupting Social Security,” March 2025.
8. Federal Trade Commission (FTC), “Consumer Sentinel Network Data Book 2024.”
9. Fidelity, “7 Ways to Help Protect Your Accounts from Fraud,” 2024.
10. FINRA, “Avoid Investment Fraud: 5 Red Flags,” 2025.
11. New York Times, “How to Recognize—and Resist—Financial Scams,” 2024.
12. Forbes, “Financial Fraud: What You Need to Know Now,” 2025.
13. U.S. Treasury, “Treasury Data Pilot Prevents and Recovers Payments,” January 2025.