Consumers faced significant financial losses due to fraud in 2024, with reports indicating a staggering $12.5 billion lost, marking a 25% rise from the previous year. The Federal Trade Commission (FTC) released this alarming data, highlighting a troubling trend in scams affecting everyday people.
While the overall number of fraud reports remained steady at around 2.6 million, the percentage of individuals who reported losing money increased sharply from 27% in 2023 to 38% in 2024. This shift suggests that more victims are experiencing financial harm from scams, even as the total number of reported incidents holds steady.
Investment scams topped the list of fraud-related losses, with consumers reporting losses of $5.7 billion—up 24% from the year before. Imposter scams followed closely, with reported losses reaching $2.95 billion. Notably, transactions made through bank transfers or cryptocurrency accounted for more losses than all other payment methods combined.
In a related effort to combat fraud, the FTC is distributing over $25.5 million to victims of deceptive computer repair services. This payout follows a settlement with two tech companies accused of misleading consumers into purchasing unnecessary services. The FTC took action against Restoro Cyprus Limited and Reimage Cyprus Limited, emphasizing that these companies violated consumer protection laws.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, noted that scammers are continuously adapting their methods. Imposter scams remained the most frequently reported, with losses from government-related scams alone increasing by $171 million to a total of $789 million in 2024.
Online shopping fraud was the second most reported issue, followed by scams related to business and job opportunities. Losses in the job scam category saw a dramatic rise, with reported losses escalating from $90 million in 2020 to $501 million in 2024.
Email emerged as the most common way scammers contacted victims, with phone calls and text messages also being prevalent methods. The FTC uses these reports to guide its investigations and collaborates with law enforcement agencies at various levels to address fraud.
As scams continue to evolve, consumers are urged to stay vigilant and informed to protect themselves from falling victim to these deceptive practices.