A recent report revealed that Black and Latino consumers are more vulnerable to online financial fraud compared to white consumers. The 2024 Consumer Cyber Readiness Report indicated that while only 6% of white consumers have been affected by financial fraud, the numbers increase to 14% for Black consumers and 13% for Latino consumers.
Yael Grauer, a privacy and security expert at Security Planner, shared insights on the findings of the report. Grauer mentioned that scammers often target marginalized communities that may be more susceptible to debt-related fraud. Additionally, forms of payment commonly used in Black and Hispanic communities, such as cash, cryptocurrency, and money orders, lack the same level of legal protections as credit cards.
The most common type of scam reported in the study is phishing, where scammers try to deceive individuals into providing personal information. While anyone can fall victim to these scams, certain communities may be more targeted based on perceived vulnerabilities.
To reduce the risk of falling victim to online scams, individuals can take proactive steps such as using a password manager, enabling multi-factor authentication, and deleting unused accounts. Password managers help create unique passwords for each account, reducing the impact of a security breach. Multi-factor authentication adds an extra layer of security beyond passwords, making it harder for hackers to access accounts.
Social media platforms also play a role in spreading online scams, as scammers target users through these channels. Individuals should be cautious of suspicious messages or requests on social media to avoid falling prey to scams.
The study highlights the need for improved digital security measures, especially for consumers of color who are disproportionately affected by online financial fraud. By implementing proactive security practices and staying informed about potential scams, individuals can better protect themselves from cyber threats.