Financial Crime Trends Reach New Heights in 2023: $10 Billion Lost to Fraud for First Time
The Federal Trade Commission (FTC) has released its latest data on consumer fraud losses, revealing that Americans reported losing more than $10 billion to scams and fraud in 2023, a staggering 14% increase over the previous year. This marks the first time that fraud losses have reached this benchmark.
Investment Scams Lead the Way
According to the FTC’s data, investment scams were the most profitable for fraudsters, with consumers reporting losses of over $4.6 billion, a 21% increase from 2022. Imposter scams came in second, with losses totaling nearly $2.7 billion.
Digital Tools Make it Easier for Scammers
Digital tools have made it easier than ever for scammers to target hardworking Americans, and the FTC is working hard to take action against these schemes.
Top Methods Used by Scammers
The FTC received over 2.6 million fraud reports from consumers last year, with email emerging as the most common method used by scammers to reach consumers in 2023, displacing text messages which held the top spot in 2022. Phone calls were the second most commonly reported contact method for fraud, followed by text messages.
FTC’s Response
In response to these trends, the FTC has taken a comprehensive approach to detect, halt, and deter consumer fraud, including:
- Leading the largest-ever crackdown on illegal telemarketing
- Proposing a ban on impersonator fraud
- Cracking down on investment schemes
- Confronting emerging forms of fraud
The agency also stepped up enforcement actions under the CAN-SPAM Act, and expanded its ability to hear directly from consumers in multiple languages through the Consumer Sentinel Network.
FTC’s Database
The FTC’s database, which receives reports from federal, state, and local law enforcement agencies, as well as non-profit organizations, received over 5.4 million reports in 2023.
Data Available
The data is now available on the FTC’s website, breaking down reports by state, metropolitan area, and subcategory of fraud. The agency uses these reports to identify fraud trends and warn consumers, and has shared them with approximately 2,800 federal, state, local, and international law enforcement professionals.
Quote from Samuel Levine
“Digital tools are making it easier than ever to target hardworking Americans, and we see the effects of that in the data,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC is working hard to take action against those scams.”