How and Where to Report Scams — and Why It’s Crucial to Do So

Why it’s important to report scams

1. There’s a slight chance you can recover what’s been stolen. While it is unlikely you’ll get your money back — as with other kinds of theft, such as a home robbery — there is at least a chance that you will. Some states are even considering laws to help victims recover lost funds, points out Stokes, who notes that last year Minnesota passed the first law of that kind in the country, with the support of AARP. It establishes a Consumer Fraud Restitution Fund that will collect up to $5 million annually from civil penalties paid by companies and individuals found guilty of consumer fraud. The state will use those funds to compensate victims when direct restitution from scammers isn’t possible.

“When you report fraud to law enforcement, it creates a record,” Stokes says. “And when you have a record of it, you can prove you were a victim in case there’s an opportunity for restitution down the road.”

2. You’re helping the authorities find and prosecute the criminals. For many victims, the possibility of justice can be just as compelling as the prospect of restitution, according to Bartolacci, who notes that every fraud report is a valuable piece of data that can help law enforcement catch criminals and hold them accountable.

“When people are victimized, what looks like fragmented or isolated incidents oftentimes are coordinated efforts,” he explains. “ [Scammers] are very sophisticated. They have major business structures and hierarchies. So when you report an incident to law enforcement, it helps them start connecting the dots. What was a $5,000 crime to you might actually be a multibillion-dollar crime affecting victims all over the world.”

3. Sharing your story can bring you support and relief. There are psychological benefits to reporting — if not to law enforcement, then to other entities that provide resources or reassurance, like the AARP Fraud Watch Network Helpline, where trained fraud-fighting volunteers will listen to your story without judgment, and offer guidance on next steps, including the best place to report the fraud. AARP also has free online fraud victim support groups. “The emotional impact [after experiencing a scam] is so profound that people often need further support,” notes Stokes.

Where to report scams

It’s no surprise that people are confused about which authorities to notify: There’s no single clearinghouse for fraud and scam reporting in the United States. Instead, there are multiple, disparate parties, each with different interests and obligations. Here’s where to start:

Your bank: Notify your bank immediately, advises Bartolacci, who notes that financial institutions can freeze your accounts to prevent additional payments to or withdrawals by scammers. Banks might also facilitate contact with law enforcement and alert other financial institutions if additional potential victims need to be identified.

Local law enforcement: Whether you reach out with or without your bank’s assistance, local law enforcement should be your first and primary point of contact, according to Det. Matthew Hogan of the Connecticut State Police, who is a fraud investigator and serves on the U.S. Secret Service’s Connecticut Financial Crimes Task Force. Read this story for more advice on reporting fraud to the police.

The feds: Because they’re focused on the most egregious or widespread crimes, federal agencies generally won’t follow up on individual reports by individual victims. Nevertheless, it’s still important to file reports with them to help them spot crime patterns and connect dots, notes Hogan, who says you should notify the FTC and, in the case of online scams, the FBI’s Internet Crime Complaint Center (IC3.gov).

Lawmakers: The more they hear about fraud, the more likely policymakers and politicians are to pass laws to address it, according to Stokes, who recommends that victims share their stories with local, state and federal lawmakers — including their local legislators, the state attorney general and senators and congresspeople.

More resources

All victims: Call the AARP Fraud Watch Network Helpline at 877-908-3360 for free assistance and support following a scam. The AARP Fraud Watch Network also offers free and confidential virtual support groups for fraud victims.

Crypto scam victims: Connect with Operation Shamrock, a nonprofit dedicated to disrupting crypto crime. In some cases, founder and president Erin West and her team have successfully recovered stolen funds. They offer online resources.

Identity theft victims: Contact the Identity Theft Resource Center (ITRC) for information and support if your identity has been stolen.

Romance scam victims: Advocating Against Romance Scammers (AARS) lists resources to help you identify romance scams, advocates for victims and raises awareness about the prevalence of these crimes.