Newly released Federal Trade Commission data show that consumers reported losing more than $10 billion to fraud in 2023, marking the first time that fraud losses have reached that benchmark. This marks a 14% increase over reported losses in 2022.
Consumers reported losing more money to investment scams—more than $4.6 billion—than any other category in 2023. That amount represents a 21% increase over 2022. The second highest reported loss amount came from imposter scams, with losses of nearly $2.7 billion reported. In 2023, consumers reported losing more money to bank transfers and cryptocurrency than all other methods combined.
Another first is the method scammers reportedly used to reach consumers most commonly in 2023: email. Email displaced text messages, which held the top spot in 2022 after decades of phone calls being the most common. Phone calls are the second most commonly reported contact method for fraud in 2023, followed by text messages.
According to the FTC’s findings, individuals in the 30-39 age bracket are increasingly falling victim to sophisticated schemes orchestrated through popular social media channels. Leveraging the allure of seamless transactions and personalized interactions, fraudsters exploit the trust and familiarity inherent in social media platforms to deceive unsuspecting users.
One of the most alarming aspects highlighted in the report is the utilization of victims’ credit card information by perpetrators. Through cunning tactics such as phishing scams and counterfeit promotions, fraudsters lure individuals into disclosing sensitive financial details, subsequently exploiting this information for illicit monetary gain. The ease of accessing and sharing personal information on social media platforms exacerbates the susceptibility of users within this age group to such fraudulent activities.
By fostering a culture of cybersecurity awareness and empowering consumers to exercise caution in their online interactions, we can collectively strive towards a safer and more secure digital ecosystem for all.
