Americans suffered a staggering $12.5 billion in fraud losses in 2024, a 25% surge from the previous year, as reported by the Federal Trade Commission (FTC). While the overall number of fraud reports remained relatively stable at 2.6 million, a concerning trend emerged: the percentage of victims experiencing monetary losses jumped significantly from 27% in 2023 to 38% in 2024, indicating that scams are becoming increasingly effective.
Investment scams dominated the landscape, accounting for nearly half of the total losses, reaching a staggering $5.7 billion. This represents a 24% increase compared to 2023. Imposter scams followed closely, with consumers losing $2.95 billion. Notably, government imposter scams saw a sharp escalation, with reported losses of $789 million, marking a $171 million rise from the previous year.
Among the top fraud categories, online shopping issues ranked second, while fraudulent business and job opportunities witnessed a dramatic increase, with losses climbing to $750.6 million. These scams often prey on vulnerable individuals, such as job seekers and small business owners, exploiting financial uncertainties.
For the second consecutive year, email remained the primary contact method for scammers, followed by phone calls and text messages. Scammers are increasingly utilizing digital communication channels to reach potential victims, complicating efforts to trace their activities.
Furthermore, bank transfers and cryptocurrency payments have emerged as the preferred methods for scammers, surpassing all other payment methods in terms of losses.
This highlights the growing vulnerabilities associated with digital transactions and the urgent need for enhanced consumer protection measures to safeguard against these evolving threats.
