Texting and Messaging Scam Attempts Have Increased by 50 Percent, a Consumer Reports Survey Finds

In addition to revealing disparities based on age, this year’s data showed stark inequities regarding the groups most vulnerable to digital scams. For example, while the percentage of Americans who reported losing money from a digital scam remains the same as last year, at 1 in 10, this year’s report revealed for the first time that, among those who had encountered a scam attempt, households with the lowest incomes were three times as likely to report financial losses due to scams as the highest income households (29 percent compared with 10 percent).

The report also found a continued racial disparity in financial losses related to scams: 37 percent of Black Americans who encountered a scam lost money, compared with only 15 percent of white Americans. These figures were similar to those reported last year. 

As a possible explanation for this disparity, the report cites a 2021 Federal Trade Commission study titled “Serving Communities of Color.” The study found that Black consumers reported filing a higher share of fraud reports than white consumers did (PDF) about using debit cards and digital payment apps, which offer fewer protections than credit cards. White consumers, on the other hand, reported filing a higher share of fraud reports about paying with credit cards.

“According to the Federal Reserve, 86 percent of white adults use credit cards while only 70 percent of Black adults do,” says Chuck Bell, programs director for Consumer Reports. “Credit cards are safer than many other payment methods because you have the right to request a chargeback for fraudulent transactions.” Bell explains that Black consumers who do not use credit cards have less ability to dispute fraud when it occurs. He adds that they may also face direct discrimination in customer service encounters.

“Congress and the financial regulatory agencies should require robust consumer protections and oversight for every type of payment method, full stop,” Bell says. "The newer, more innovative methods, such as digital payment apps and crypto, have fewer protections for misdirected payments and fraud, so right now you use them at your own risk.”

The FTC report also notes that Black and Latino communities are targeted or disproportionately impacted by scams centered around student loan forgiveness, false business opportunities, and pyramid schemes.

“The continued reality that Black Americans lose money to digital scams at more than twice the rate of white Americans is unacceptable—and it’s not improving,” says Rep. Yvette D. Clarke (New York 9th District) and chair of the Congressional Black Caucus in response to the findings of the Cyber Readiness Report.

 “These disparities reflect systemic inequities in financial protections, targeted scam tactics, and access to digital safeguards. Every person—regardless of race, income, or ZIP code—deserves to be safe, empowered, and secure in our digital world.”

The report offers a handful of recommendations to help consumers guard against text and messaging scams. 

Do not reply to scam messages. Replying confirms that your number is in use, so scammers may continue to target it or sell it as part of a list of working numbers. Instead, block the number sending the suspicious text or mark it as spam, and forward the text to 7726 (SPAM) to report it to your mobile service provider.

Reduce text spam. All major phone manufacturers and phone service providers provide tools that enable consumers to reduce unwanted and potentially fraudulent messages by blocking numbers that deliver spam and reporting messages as spam. Doing this decreases the risk that you’ll click on a link from an unknown sender. Apple offers an additional feature that filters out texts from unknown senders. Be aware that turning this feature on may mean you’ll miss texts from numbers not in your contacts or that you haven’t messaged, even if you want to hear from them. You can always find these by looking in a folder called Unknown Senders.

Beware of phishing. Be suspicious of requests for personal information via text, email, or messaging apps, even if they appear to be from legitimate sources, such as your bank, tech support, or someone you know. Legitimate organizations—including banks and the U.S. Postal Service—do not request sensitive information this way. Be extra careful if the message seems urgent or time-sensitive. If in doubt, reach out to the person or business using contact information you’ve saved elsewhere, rather than calling or texting back to the number that reached out to you.

Use credit cards, when possible. Apps like CashApp, Venmo, and Zelle generally offer fewer protections than credit cards. While they may reimburse some consumers in some circumstances, they’re not legally required to provide the same fraud protections as traditional financial institutions. When purchasing a product online, stick to credit cards if possible. Avoid using payment apps, cash, money orders, and cryptocurrency unless you are making payments to friends, family, and people you trust and whose identity you can verify. 

Stay safe while using digital payment apps. If you do use digital payment apps, make sure to take smart steps like turning on transaction alerts, locking your wallet, checking your balance weekly, and enabling strong authentication for every payment.

Use a password manager. Reusing passwords is a widespread security risk. A password manager will create and store strong, unique passwords for each online account–and will simplify the process of securely logging in to them.

Use better multifactor authentication. In addition to a password, multifactor authentication requires an additional credential to access an account or application. This is often a code that is sent via text message. However, security key or app-based multifactor authentication is more secure.

Block third-party trackers. Free browser extensions like Privacy Badger and uBlock Origin block third-party trackers, making it difficult for companies or advertisers to track your activity across multiple websites. This reduces your digital footprint, lets websites load faster, and reduces the chances of malicious ads infecting your computer with malware.