I recently attended a conference for legislators from across the country. One of the topics we discussed was the growing threat of fraud and scams affecting families, businesses, and communities. I found this panel especially interesting and learned a great deal from the discussion. As we head into the holiday season, I wanted to use this week’s column to share some of what I learned.

The session began by explaining the difference between fraud and a scam. Fraud is something that happens to a person, usually without their knowledge. Examples include someone stealing your credit card information or hacking into your bank account. A scam involves manipulating a victim into willingly participating in a scheme. Common examples include imposter scams or romantic scams. To put it in simple terms, fraud is someone breaking into your house, a scam is someone tricking you into opening the door and letting them in.

Unfortunately, the industry of separating unsuspecting people from their money is booming. One expert on the panel estimated that as much as 60 percent of Cambodia’s gross domestic product (GDP) is tied to financial scams. Scammers and fraudsters are constantly refining their tactics and using new technology. These bad actors are quickly adapting to artificial intelligence (AI) and are now able to create convincing replicas of a person’s voice, making it possible for them to say things the real person never said. This is particularly concerning for friends and family of anyone with extensive audio or video content available online, such as media personalities, public figures, and musicians. Scammers can also impersonate reputable companies, using fake emails or links to trick people into voluntarily providing login credentials or financial information. While older adults are often the primary victims, people of all ages are increasingly falling prey to these schemes.

Rapidly changing tactics, along with the fact that the vast majority of these schemes are carried out by foreign nationals, make it difficult to write effective laws and regulations to prevent fraud and scams. Similarly, there is only so much banks and financial institutions can do to combat these crimes. Once the money is out of your account, it is out of the country. As a result, the most effective course of action is vigilance. Be cautious when clicking on links, protect your personal information, and consider setting up a family password to use over the phone in case of an emergency.

As we approach the holiday season, I urge everyone to keep their guard up. Scammers and fraudsters are always looking for opportunities to take advantage of unsuspecting victims. Staying informed, slowing down, and questioning suspicious requests remain the most effective ways to protect ourselves and our loved ones.

If you need assistance with any state-related matters, please call my team at the State Capitol – 608-266-0703 – or email me – Sen.Marklein@legis.wisconsin.gov. My team is ready and willing to help navigate your state government, clear obstacles, and receive your input.