Scams Cost Hits $8.8B in 2024: FTC Data
Investment scam victims lost more than $21,000 on average and $3.8 billion in total
- Written by Banking Exchange staff
US consumers lost almost $8.8 billion to fraud last year, according to new data from the Federal Trade Commission (FTC).
Of this total, more than $3.8 billion alone related to investment scams, the FTC reported — more than double the figure from 2021. On average, victims of investment scams lost more than $21,000.
Imposter scams — in which criminals pose as other people or companies to convince the victim to send money — made up the second biggest category by total losses at $2.6 billion. The average loss was just under $4,000.
Losses to business imposters increased significantly year-on-year, from $453 million in 2021 to $660 million in 2022.
The FTC also said more than 1.1 million instances of identity theft had been reported to its service in 2022.
Banks have been working to address scams, in some cases for years, through actions such as digitization and financial technology solutions. The American Bankers Association and consultancy group Oliver Wyman last year published a report setting out a five-year framework for improving security and identity verification technology.
Oliver Wyman head of retail and business banking for the Americas Alina Lantsberg said at the time: “These changes will deal a body blow to synthetic identity fraud and account takeover fraud, reducing financial losses and consumer frustration.”
The data is sourced from the FTC’s Consumer Sentinel Network, which gathers data from consumers and industry groups as well as federal, state, and local law enforcement agencies. Information is also shared with law enforcement to help crack down on frauds and scammers.
Tagged under Risk Management, Feature, Feature3, Security, Cyberfraud/ID Theft,