U.S. Consumers Lost $10B to Fraud in 2023, FTC Says

Photo byDmytro DemidkoonUnsplash

Investment scams lead to reported losses of more than $4.6 billion.

Consumers reported losing upwards of $10 billion to fraud in 2023. According to Federal Trade Commission data, this is the first time fraud losses have reached this level—a 14% increase over losses in 2022.

Investment scams cost U.S. consumers more than $4.6 billion in 2023, more than any category, a 21% increase over 2022.

Imposter scams, totalling nearly $2.7 billion, were the second-highest loss.

Photo byChris YangonUnsplash

In 2023, fraudulent bank transfers and cryptocurrency transactions cost consumers more money than all other scams.

The Federal Trade Commission received fraud reports from 2.6 million consumers in 2023, equaling the number of reports in 2022.

Imposter scams saw significant increases in reports of business and government impersonators, the most reported scam category.

Online shopping issues are placed second as the most commonly reported in the fraud category.

Photo byMicrosoft EdgeonUnsplash

Prizes, sweepstakes, lotteries, investment-related reports, and business and job opportunity scams were commonly reported.

In 2023, email ranked first and displaced text messages as the most commonly reported contact method for fraud. Phone calls ranked second, followed by text messages.

The FTC takes a comprehensive approach to detect, halt, and deter consumer fraud.

The FTC, along with 100 federal and state law enforcement partners and the attorneys general from 50 states and the District of Columbia, is cracking down on illegal telemarketing calls in Operation Stop Scam Calls. The operation targets 180 actions. Scammers make billions of calls every year to U.S. consumers.

Photo byIan HutchinsononUnsplash

Wealthpress, Blueprint to Wealth, Traffic and Funnels, Automators, and Ganadores were all fined and sued.

The FTC is in the final stages of rulemaking targeting business and government impersonation scams.

The Commission uses its authority under the CAN-SPAM Act to rein in unlawful actions, including cases against Publishers Clearing House and Experian.

The Consumer Sentinel Network database receives reports in multiple languages directly from consumers in twenty states and federal, state, and local law enforcement agencies. The Better Business Bureau and non-profit organizations also contribute.

Sentinel received 5.4 million fraud reports in 2023, including identity theft and complaints related to consumer issues, credit bureaus, banks, and lenders. In 2023, upwards of one million identity theft reports were taken at the IdentityTheft.gov website, which the FTC runs.

Photo byTobias TulliusonUnsplash

The reports the FTC receives through the Sentinel network are the starting point for FTC law enforcement investigations. 2,800 local, state, federal, and international law enforcement professionals share the information gathered.

Data from Sentinel reports are vital to the agency’s law enforcement mission. They help the FTC warn consumers and identify fraud trends. The FTC does not intervene in individual complaints. A breakdown of 2023 reports is available at ftc.gov/exploredata.

The FTC never demands money, makes threats, tells you to transfer money, or promises a prize. More consumer topics are available at consumer.ftc.gov. Consumers may report fraud, scams, and bad business practices at ReportFraud.ftc.gov.

Interested consumers can follow the FTC on social media and read consumer and business blog alerts.

***

Douglas Pilarski is an award-winning writer and journalist based on the West Coast. His writing resonates with those passionate about luxury goods, exotic cars, horology, tech, food, lifestyle, historical events, equestrian and rodeo, and millionaire travel.

Your comments are highly valued.

Copyright © 2024 Sawyer TMS. All rights reserved.

N.B. This article is for information purposes only unless otherwise noted.