Fraudsters are using a $20 ‘distraction’ scam to steal thousands of dollars from victims — nearly $5,000 drained from 1 LA teacher’s bank account. Here’s how the ‘huge violation’ went down

Be on the lookout

Distraction scams don’t come with flashing red lights, they come with kindness and confusion. These types of scams are built on flustering you just enough to make you vulnerable. This involves a stranger creating a diversion — like insisting you dropped a $20 bill — while an accomplice steals something like your wallet or debit card.

According to the Federal Trade Commission, Americans lost over $12.5 billion to fraud in 2024, a 25% increase from the year before. While that includes a mix of schemes, distraction scams are rising, especially in places we least expect it like grocery store lines.

"It’s a huge violation," Sarah said. "I feel like I’m looking over my shoulder everywhere I go. It’s just horrible."

Jennifer, Sarah’s daughter, filed a police report and shared the story online — and the responses came flooding in. Dozens of people chimed in with eerily similar experiences, revealing just how widespread the scam really is.

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What you can do to protect yourself

For Jennifer, a teacher with a limited income, falling victim to a scam wasn’t just an inconvenience, it had immediate financial consequences. "My money is gone, and I had just gotten paid," she told Fox LA. As living expenses continue to rise, incidents like this can disrupt far more than a day’s routine.

And yet, that’s why scams like these are so effective, often appearing as benign interactions. “You need to understand the hallmarks of most scams: They contact you first, dangle some sort of bait in front of you and create a sense of urgency,” Jason Zirkle, training director at the Association of Certified Fraud Examiners, told Nerd Wallet.

Remaining aware of your surroundings is key. Trusting your instincts, keeping personal belongings securely fastened and not hesitating to report suspicious behavior — whether to a store manager or law enforcement — can serve as your first line of defense.

And if you do find yourself in Sarah and Jennifer's position, it’s important to take action. The first step is to contact your bank or card issuer immediately to freeze the account to prevent further transactions. Most banks offer 24/7 fraud hotlines and mobile app features to lock your card with just a tap. Next, file a fraud report with your financial institution so they can begin investigating the unauthorized charges. This also increases your chances of recovering any lost funds.

Be sure to file a police report as well, which not only helps authorities track patterns of criminal activity but may also be required by your bank for reimbursement.