Financial Scams on the Rise in US: States Most Affected Revealed
A recent surge in fraud reports filed with the Federal Trade Commission (FTC) has sparked concerns about the growing menace of financial scams in the United States. According to the FTC’s Consumer Sentinel Network Data Book for 2020, there was a staggering 27.3% increase in fraud reports between 2020 and 2021, resulting in total reported monetary losses jumping by a whopping 78%, from $3.3 billion to $5.9 billion.
Most Common Types of Financial Fraud
To shed light on the most common types of financial fraud and identify states where residents are most affected, SmartAsset analyzed data from the FTC’s Consumer Sentinel Network Data Book for 2020. The analysis considered three key metrics:
- Total fraud reports per 100,000 residents
- Percentage of fraud reports with monetary loss
- Median amount lost
Top 10 States Most Affected by Financial Fraud
The findings are alarming, with nearly half the states reporting over 1,000 fraud cases per 100,000 residents. The top 10 states where residents face the most financial fraud are:
1. Kansas - 2,212 fraud reports per 100,000 residents
2. Delaware - 1,946 fraud reports per 100,000 residents
3. Nevada - 1,844 fraud reports per 100,000 residents
4. Illinois - 1,745 fraud reports per 100,000 residents
5. Florida - 1,665 fraud reports per 100,000 residents
6. California - 1,569 fraud reports per 100,000 residents
7. Washington - 1,569 fraud reports per 100,000 residents
8. New Jersey - 1,245 fraud reports per 100,000 residents
9. Rhode Island - 1,246 fraud reports per 100,000 residents
10. Georgia - 1,665 fraud reports per 100,000 residents
Most Common Type of Financial Fraud
The most common type of financial fraud is identity theft, accounting for 29.39% of all reported fraud cases in 2020, totaling over 1.3 million instances. Impostor scams, romance scams, and investment frauds are other prevalent types of financial scams that have left many Americans vulnerable to financial losses.
Experts’ Advice on Preventing Financial Scams
In response to the growing threat of financial scams, experts advise individuals to remain vigilant and take proactive steps to protect themselves. “Be in the know,” said Jeff Zhou, CEO of Fig Loans. “Fraudsters are constantly evolving, so it’s essential to stay informed about the current climate of fraud.”
To prevent financial scams, experts recommend taking the time to think through options carefully, avoiding the urge to act swiftly, and working with a professional financial advisor who can guide you through important financial decisions.
Conclusion
As the threat of financial scams continues to rise, it is essential for individuals to stay informed and take proactive steps to protect themselves from these nefarious schemes. By being aware of the common types of financial fraud and taking measures to prevent them, you can safeguard your financial well-being and avoid falling victim to these scams.