Fraud is committed by bad guys.

So let's not blame victims.

I have no patience with financial fraud. Almost every week, the SEC publishes a new list of cases involving fraud allegations. It’s a depressing list of people who knowingly take advantage of others, and it only includes frauds under the SEC’s jurisdiction. There are so many other types of financial fraud out there! I believe that most people are pretty good, but the few who are bad cause a disproportionate amount of destruction.

And yet, for all of my conviction and expertise, I almost responded when I got a text from the rector at my parish asking for gift cards to help out someone in need. (This is a very common scam these days.)

Last week, I was at the Fincon Expo in New Orleans, a trade show for financial media. One of the presentations was by Kathy Stokes, director Fraud Prevention at the AARP’s Fraud Watch network. One key finding: young people are more likely to be victims of fraud, but fraud against the elderly results in more money taken.

Her key point, though, was the need to rethink fraud. This is one of those crimes where we blame victims rather than the criminals. And increasingly, the criminal is part of a multi-national syndicate working overseas with sophisticated AI, not a local grifter. The modern fraudster understands how to get people into a heightened emotional state, extract their data and money, and disappear. Generative AI makes them even better at changing accents or impersonating people. The criminals benefit whenever we blame the victims of fraud.

That, the AARP says, has to change is we’re going to make a dent in fraudulent activity. We have to blame the fraudsters, not the victims.

If you or someone you love is the victim of an Internet fraud, there is a chance that the transaction can be broken if it is reported to the FBI within 48 hours. The agency’s Internet Crime Complaint Center (IC3) has all the information. It is also the place to report any crimes that involve any online interaction.

For other financial crimes, the first thing to do is file a police report. Of course, many police departments discourage this, but Stokes pointed out that if someone manages to crack one of these rings, there will be a ton of money available for refunds, and you’ll need to have a police report to get a crack at it. You may need to insist on a report, and you can contact the AARP fraud hotline at 877-908-3360 if the local police are being difficult. I get it, they don’t have the resources to go after multi-national crime syndicates, but a victim needs that report.

It might also help improve information about how much fraud takes place. The Federal Trade Commission reports that fraud costs consumers $9 billion per year. That’s a big number, but it may represent only 5% of all the fraud that takes place. That’s because people don’t report it!

The AARP publishes a list of current scams, a map to show where current scams are being conducted, and a newsletter with the latest fraud-related news.

All of this information is free to the public. You don’t have to be an AARP member.

In the meantime, keep your wits about you and be careful. Don’t let the bad guys get away with their schemes.

Blame the crooks for fraud, not their victims.