The rise of phone scams, driven by artificial intelligence (AI), has reached alarming proportions, with more than a quarter of calls from unknown numbers now falling into the unwanted or spam category, according to a recent study. On average, Americans are being inundated with 14 spam calls each month.

Hiya, a voice security solutions provider, unveiled its findings on phone fraud and spam calls during its State of the Call Summit held on October 5th. Of the 98 billion calls analyzed worldwide, a staggering 25% were identified as spam or fraud. In the United States alone, out of 2.13 billion scrutinized calls, 27% were flagged as spam, but the good news is that 26% were categorized as mere nuisance calls, with only 1% constituting actual fraud attempts.

The study further revealed that the average global cell phone user is now subjected to approximately 14 spam calls each month. While there has been a gradual decline in spam calls worldwide since the last quarter of 2022, scammers continue to evolve, adopting new tactics and harnessing AI and spoofing technologies to make their schemes more sophisticated.

Fortunately, American consumers are becoming more proactive in reporting unknown calls, largely due to the launch of Operation Stop Spam Calls, an initiative jointly initiated by the Federal Communications Commission (FCC), the Department of Justice (DOJ), and the Federal Trade Commission (FTC) to combat spam calls. Despite its relatively short duration, the initiative has shown promising results, including a remarkable 99% reduction in auto warranty scam calls and an 88% month-to-month decrease in student loan scam calls reported by the FCC in July.

Top Five Phone Scams in 2023

Despite the strides made by Operation Stop Spam Calls in curtailing auto warranty, student loan, and mortgage refinance junk calls, scammers targeting Americans have adapted and devised new ways to deceive consumers. The Hiya report identifies the following top phone scams of 2023:

1. Amazon Impersonators: These scammers commonly target Amazon account holders with false claims of unauthorized purchases or the need to update credit card information. Avoid sharing your Amazon login or credit card details with such callers.

2. Fraudulent Insurance Policies and Medicare Deceptions: Scammers might try to peddle counterfeit insurance plans, alleging unpaid bills for auto insurance, life insurance, or health insurance. These schemes have the intention of gathering confidential data, including bank account information, social security numbers, or credit card particulars.

3. Credit Card Company Scams: This prevalent scam employs various tactics to extract your credit card information, including urgent pleas to renew a subscription, impersonating your credit card fraud department, or claiming payment for package delivery.

4. Cryptocurrency Scams: These scams capitalize on your desire for quick profits by luring you into purchasing cryptocurrency via text or phone calls. In 2022, Americans reportedly lost $1.4 billion to this type of scam, according to Hiya's findings.

5. Loved One in Trouble Scams: Advances in AI technology have enabled scammers to mimic a person's voice using video clips or voice recordings. They then "spoof" or use the individual's phone number to contact family members and friends, urgently seeking money in the voice of the supposed loved one.

Most Prevalent Spam Texts

The proliferation of text message-based scams, encompassing both SMS and MMS fraud, is a growing issue. In 2022, the Federal Trade Commission disclosed that more than 321,000 Americans were ensnared by scams targeting mobile phone users, often referred to as "smishing" scams. Additionally, MMS, or "mmishing," scams pose another significant concern.

Collaborating with KONTXT, a subsidiary of RealNetworks, Hiya conducted an analysis of text message scams, culminating in the identification of the most frequent text message scams, which encompass:

1. CVS Cares: This message presents itself as originating from CVS, offering a store credit and furnishing a hyperlink for claiming the offered credit.

2. Unpaid Television Bill: The message informs the recipient of an overdue TV bill and includes a hyperlink for obtaining further details.

3. Payment Notice: This message informs the recipient about a payment from someone, along with a hyperlink to either accept or decline the payment.

4. Political Fundraising: This message promotes a political party or initiative, featuring a hyperlink for obtaining additional information.

In Conclusion

Despite the decline in spam calls (and texts) over the past year, thanks to collaborative efforts between various agencies, scammers persist in devising new tactics. It remains essential for Americans to stay vigilant in safeguarding themselves from phone scams.