Americans lost $8.8 billion to fraud last year, according to new FTC data. Investment fraud ($3.8 billion) was the biggest source of revenue for scammers.
Investment fraud surged more than 100% from 2021, reaching $1.8 billion, according to consumer protection agencies.
This is in line with the latest FBI report that found investment fraud earned scammers $1.5 billion in 2021, the second highest of any type of cybercrime.
Second on the FTC list was “Impersonation Fraud,” which earned $2.8 billion, up slightly from $2.4 billion in 2021.
As the name suggests, these are phone calls, texts, or emails socially engineered into victims impersonating others and suddenly being contacted by scammers and handing over personal and financial information or paying the scammers directly. it could be an email.
Losses from business fraudsters are particularly high, rising from $453 million in 2021 to $660 million in 2022.
Social media posted the highest loss of $1.2 billion. This probably reflects many users’ trust in the content promoted by their friends, followers, and “celebrities” on these platforms.
Overall, the FTC’s Consumer Sentinel Network received 5.2 million reports in 2022. Identity theft scams were the most reported, followed by issues with credit bureaus and informants. The latter typically transmit information about consumers to organizations such as credit bureaus, tenant screening companies, and check validation services.
A total of 2.4 million fraud reports were filed with the FTC in 2022, of which a quarter (26%) involved financial loss. The $8.8 billion figure translates to a median loss of $650 per victim, the agency said.
However, scams carried out over the phone are much more expensive ($1400), highlighting the dangers of vishing calls, tech support scams, and other tactics aimed at deceiving recipients. .
Younger people report losing money to scammers more often than their elders, with 43% of those aged 20-29 doing so compared to 23% of those aged 70-79. .
But if the latter group suffered a loss, it was much larger, at $1000 compared to $548 for the younger group. The median loss for those 80 and older was even higher at $1,674.
