The US Federal Trade Commission (FTC) said that Americans lost $12.5 billion to fraud during 2024. This is a 25% increase over 2023.
Investment frauds appear to have led to the largest losses, at around $5.7 billion. Fraud involving impersonation is next , leading to losses of $2.95 billion in 2024.
An interesting finding, based on consumer fraud reports, is that younger people were more likely to be scammed than those over the age of 70.44% of all reports filed last year came from consumers between the ages of 20 and 29. Of course, this could be because a lot of fraud these days is done online and younger people are more involved in all of this, so some may fall for the trap.
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For example, some of the most common scams were those related to supposed jobs, which are primarily aimed at young people. According to the FTC, these scams have increased significantly in recent years, with the number of reports nearly tripling and losses increasing from $90 million to $501 million in just four years (between 2020 and 2024).
“People lost more than $3 billion to scams that started online, compared to about $1.9 billion lost to more “traditional” communication methods, such as calls, texts or emails. However, people lost more money per person (an average of $1,500) when interacting with scammers over the phone,” the FTC reported.
“For the second year in a row, email was the most common way consumers reported coming into contact with scammers. Phone calls were the second most frequently reported method of communication, followed by text messages“.
The FTC added 6.5 million consumer reports to its secure online database Consumer Sentinel Network (Sentinel) in 2024.
See also: Man jailed for investment fraud and theft of $50 million
However, it’s worth noting that the FTC report only reflects a fraction of the actual losses caused by fraud in 2024. Most frauds go unreported. As a result, we can’t know the true number or the exact amount that fraudsters have stolen from American citizens.
Fraud victims can file identity theft reports at IdentityTheft.gov and report incidents at ReportFraud.ftc.gov.
Once included in the FTC's Sentinel database, their reports are available to federal, state, local, and international law enforcementto help identify scammers.
Protection tips for Americans
Recognize common scams
- Investment scams: If something sounds too good to be true, it probably is. Be skeptical of "guaranteed returns."
- Impersonation: Scammers may pose as government officials, law enforcement, or even family members in danger. Verify identity before acting.
- Phishing emails and text messages: Don't click on suspicious links or provide personal information. Always verify the sender.
- Tech support scams: Real companies like Microsoft or Apple will not contact you about viruses on your device.
Protect your personal information
- Never share sensitive details: Don't give out social security numbers, bank details, or passwords over the phone or email.
- Enable two-factor authentication (2FA): This adds an extra layer of security to your accounts.
- Use strong, unique passwords: A password manager can help you keep track of them.
See also: Crypto-romance scams are on the rise – how to avoid them
Verify before you trust
- Check the source: If you receive a suspicious call, hang up and contact the company directly using an official number.
- Research investment opportunities: Use resources like the SEC's Investor.gov to verify legitimacy.
Stay alert when making payments
- Avoid paying with cryptocurrencies, gift cards, or bank transfers: These payment methods are more difficult to track and recover.
- Use credit cards when possible: They offer better protection against fraud than debit cards or cash apps.
Report scams
- FTC (Federal Trade Commission): ReportFraud.ftc.gov
- FBI Internet Crime Complaint Center (IC3): www.ic3.gov
- Bank or credit card provider: If you've sent money to a scammer, report it immediately
Source: www.bleepingcomputer.com
