Staying Fit
The numbers are in, and 2023 was another record-breaking year for fraud.
According to the Federal Trade Commission’s 2023 Sentinel Data Book, reported theft through fraud topped $10 billion. The rise from $2.4 billion in 2019 – before the pandemic – is a staggering 317%.
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While these numbers illustrate that fraud continues to soar across the U.S., they only reveal a fraction of actual theft from fraud, since the crime is notoriously underreported.
More than anything, the report shows that nobody is immune to fraud, a threat that continues to evolve in both scale and sophistication.
Impostor scams still on top
- Over 850,000 consumers reported experiencing impostor scams, with 1 in 5 suffering financial losses.
- In these prevalent scams, criminals pretend to be a trusted person, company or government agency — a bank, known business, celebrity or a relative in trouble. They convince the target of some untruth to coerce them into making a financial transaction or sharing information that allows the criminal to access and wipe out financial accounts.
Theft through investment scams soared
- Investment fraud victims reported theft of a staggering $4.6 billion, surpassing all other types of fraud. Reporting victims in this category experienced median losses of $7,700.
- Many of these scams involve cryptocurrency fraud, which has taken a quantum leap in recent years, where it is used both as a form of payment and as the commodity of choice in sophisticated investment schemes.
Criminals know no bounds
- Most people believe that scams only happen to older adults. The reality is younger people report losing money to fraud more often, with 44% of reports coming from those age 20-29. But when older adults are the victim, they lose so much more.
- Email was the most popular contact method reported. However, social media-based scams led to the highest reported overall dollars stolen, and phone calls resulted in the highest amount stolen per victim.
- It is more important than ever to stay up to date on the latest scams and share what you know to help protect others.
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