WASHINGTON, D.C. — American consumers have now, for the first time, reported losing over $10 billion to various forms of fraud in a single year, according to new data released by the Federal Trade Commission (FTC). This represents an alarming 14% increase from the losses reported in 2022.
Investment scams proved to be the costliest fraud, with consumers losing a staggering $4.6 billion, a 21% leap from the previous year. Imposter scams were next, with losses estimated close to $2.7 billion. Interestingly, 2023 was the year that bank transfers and cryptocurrency lead the way, outpacing all other methods for reported losses.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, spoke candidly about the concerning trend. “The ease with which digital tools now allow scammers to target hard-working Americans is reflected in this data,” said Levine. “The FTC is steadfastly committed to countering these scams.”
In contrast to 2022, the most widely used method of reaching victims in 2023 was via email, ousting text messages from the top spot. Phone calls still maintain a significant presence, coming in as the second most reported contact method for fraud.
The FTC detailed various initiatives designed to prevent consumer fraud, including spearheading a major crackdown on illegal telemarketing and proposing a ban on imposter fraud. It also disclosed its involvement in multiple cases against investment schemes, such as Wealthpress and Ganadores. Additionally, efforts have been made to equip consumers against emerging frauds, including the launch of a challenge in 2023 aiming to safeguard consumers from fraud involving artificial intelligence-enabled voice cloning.
The FTC’s Consumer Sentinel Network, which collects reports from consumers and a range of organizations, received 5.4 million reports in 2023. These include fraud reports, identity theft reports, and complaints about credit bureaus and banks, among others. The data collected through the Sentinel Network is vital in instigating many of the FTC’s law enforcement investigations, as well as helping to identify evolving fraud trends and issuing consumer warnings.
Despite these rising figures, the FTC is confident in its comprehensive approach to detect, halt, and deter consumer fraud. However, each American consumer must remain vigilant, continually adapting to these changing tactics, and report suspected scams to contribute to this fight.
For more detailed information, the complete breakdown of reports received in 2023 is available on the FTC’s data analysis site.
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