American Fraud Losses Are Higher Than Ever. What Should Journalists Know?
In 2023, a disturbing trend emerged as U.S. adults experienced unprecedented losses of $10 billion due to fraudulent activities, according to data released by the Federal Trade Commission (FTC). This record-breaking figure underscores the growing threat posed by scammers across various domains, including deceptive investment schemes, fraudulent business dealings, romance scams, and misleading government service claims. The FTC reported that approximately 690,000 individuals fell victim to these scams, resulting in a 14% increase in losses compared to the previous year and marking the first time the FTC has recorded such a substantial monetary impact.
The breadth of fraudulent activities has been diverse, with scammers employing tactics ranging from elaborate romance deceptions to deceptive calls or emails purporting to be from a bank's fraud department. Other common schemes involved exploiting faux distress calls from supposed relatives and masquerading as fake tech support experts. According to the latest Consumer Sentinel Network Data Book, the magnitude of the issue is further emphasized by the fact that consumers made over 2.6 million fraud reports nationwide in 2023 to various agencies, with nearly 27% of these reports indicating financial losses.
The median amount lost to these scams was approximately $500, reflecting a marginal increase from the figures reported in 2022, where around 624,000 people reported losses totaling $8.9 billion. Law enforcement agencies often face significant challenges in pursuing every instance of fraud, especially when dealing with relatively smaller amounts that allow scammers to operate discreetly beneath the radar.
Notably, business imposter scams witnessed an 18% surge in 2023, with attackers increasingly impersonating legitimate organizations such as major retailers or tech support services. The FTC recorded 474,000 cases of business imposter scams in 2023, up from less than 400,000 in 2022. Additionally, scams mimicking government officials and services grew by 15%, with the FTC receiving more than 228,000 reports of such scams during the year.
