| The numbers are in, and 2023 was another record-breaking year for fraud. According to the Federal Trade Commission’s 2023 Sentinel Data Book, reported theft through fraud topped $10 billion. The rise from $2.4 billion in 2019 – before the pandemic — is a staggering 317%. While these numbers illustrate that fraud continues to soar across the U.S., they only reveal a fraction of actual theft from fraud, since the crime is notoriously underreported. More than anything, the report shows that nobody is immune to fraud, a threat that continues to evolve in both scale and sophistication. |
| Impostor Scams Still on Top• Over 850,000 consumers reported experiencing impostor scams, with 1 in 5 suffering financial losses.•In these prevalent scams, criminals pretend to be a trusted person, company, or government agency — a bank, known business, celebrity, or a relative in trouble. They convince the target of some untruth to coerce them into making a financial transaction or sharing information that allows the criminal to access and wipe out financial accounts. Theft Through Investment Scams Soared• Investment fraud victims reported theft of a staggering $4.6 billion, surpassing all other types of fraud. Reporting victims in this category experienced median losses of $7,700.•Many of these scams involve cryptocurrency fraud, which has taken a quantum leap in recent years, where it is used both as a form of payment and as the commodity of choice in sophisticated investment schemes. Criminals Know No Bounds• Most people believe that scams only happen to older adults. The reality is that younger people report losing money to fraud more often, with 44% of reports coming from those age 20-29. But when older adults are the victim, they lose so much more. •Email was the most popular contact method reported. However, social media-based scams led to the highest reported overall dollars stolen, and phone calls resulted in the highest amount stolen per victim.•It is more important than ever to stay up to date on the latest scams and share what you know to help protect others. |
| Reprinted from AARP Fraud Watch Network |