Americans Lost $12.5B to Scams in 2023 | FTC Report

The Surge in Fraud Reports and Financial Losses

Many individuals are currently receiving unsolicited voicemails concerning their vehicle’s extended warranty.

Data from the U.S. Federal Trade Commission (FTC) indicates that approximately 2.6 million fraud reports were filed in 2024. This resulted in a staggering $12.5 billion in financial losses for victims.

This represents a substantial increase compared to the $2.5 billion lost in 2023, despite a similar volume of reports received by the FTC.

Common Avenues for Fraudulent Activity

Reports show that social media platforms are the most frequent initial point of contact for scammers. However, the FTC does not specify which platforms are most heavily utilized by these malicious actors.

Predominant Scam Tactics

Impostor scams are currently the leading cause of financial loss. These involve criminals posing as romantic partners, distressed family members, government officials, or technical support personnel.

Instances of these scams vary in scale. One notable case involved a French woman defrauded of $800,000 by an individual impersonating actor Brad Pitt.

Exploiting Anxiety and Urgency

Scammers frequently generate feelings of anxiety and urgency to disarm potential victims, even those who are typically cautious.

Charlotte Cowles, a financial columnist for The Cut, detailed her experience of being scammed out of $50,000 in cash in a widely-shared essay. She physically handed the money to a stranger in a shoebox.

Despite her typically level-headed nature, Cowles found herself susceptible to a fabricated crisis, as she wrote, “Until, suddenly, I was.”

Demographic Vulnerabilities

While older adults are often perceived as particularly vulnerable to online scams, FTC data reveals a different trend.

Individuals aged 20-29 reported scams more frequently than those over 70. However, when elderly individuals did experience losses, the amounts tended to be significantly higher.

Evolving Scam Landscape

Certain scam types have persisted for over a decade, while others are experiencing rapid growth.

Scams related to job and business opportunities are the third most common in 2024. Reports in this category have nearly tripled between 2020 and 2024.

Losses from job and employment scams rose from $90 million in 2020 to $501 million in 2024.

Payment Methods Used by Scammers

Traditional bank transfers remain the most common method for scammers to extract funds, accounting for approximately $2 billion in losses.

Cryptocurrency payments are a close second, with reported losses totaling $1.4 billion.

The Future of Scams: AI and Deepfakes

Scammers typically initiate contact through social media, phone calls, email, or text messages.

The increasing accessibility of AI deepfake technology poses a new threat. Scammers may be able to convincingly mimic the voices of loved ones, enabling more sophisticated and targeted attacks.

Therefore, verifying information independently – such as contacting a family member directly – is crucial before responding to urgent requests from unknown sources.