American Fraud Losses Surpass $10 Billion in 2023

Published about 2 months ago

Federal Trade Commission (FTC) data indicates that Americans lost more than $10 billion to fraud in 2023. This figure represents a 14% increase compared to the previous year.

Investment Scams Account for Almost Half

Investment scams were the primary culprits, accounting for nearly half of the losses. These scams resulted in losses of over $4.6 billion, marking a 21% rise from the previous year.

The Second Highest Loss: Imposter Scams

Imposter scams stood second in the list, causing losses nearing $2.7 billion. Despite the growing awareness and protective measures, these scams continue to exploit vulnerable individuals.

Payment Methods Used in Scams

In 2023, consumers reported losing more money through bank transfers and cryptocurrency than any other methods. Both these payment methods have seen a significant increase in usage, making them attractive targets for scammers.

FTC Received Nearly 2.6 Million Fraud Reports

The FTC received fraud reports from 2.6 million Americans in 2023, which is almost equivalent to the number of reports in 2022. This steady number suggests that the problem of scams remains persistent.

Most Commonly Reported Scams and Contact Methods

The most commonly reported scam category was imposter scams. This was followed by online shopping issues, prizes, sweepstakes and lotteries, investment-related reports, and business and job opportunity scams.

Email emerged as the most commonly used contact method by scammers, followed by phone calls and texts. This highlights the importance of being vigilant when communicating electronically.

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