Financial Fraud in the United States Reaches Alarming New Heights
$8.8 Billion Lost to Scams in 2022, FTC Reports
The Federal Trade Commission (FTC) has released disturbing data showing that consumers across the United States reported losing nearly $8.8 billion to financial fraud in 2022, a staggering increase of over 30% from the previous year.
Investment Scams: The Most Lucrative Type of Fraud
Investment scams emerged as the most lucrative type of fraud, with losses totaling over $3.8 billion. This is a significant increase from previous years, highlighting the need for consumers to be cautious when investing in the stock market or other financial instruments.
Imposter Scams: The Second Most Common Type of Fraud
Imposter scams came in second, with reported losses of $2.6 billion, a significant increase from 2021’s total of $2.4 billion. This type of scam involves fraudsters posing as legitimate individuals or companies to trick consumers into revealing sensitive information.
Other Common Types of Financial Fraud
Other common types of financial fraud included:
- Prizes, sweepstakes, and lotteries: $1.2 billion in reported losses
- Investment-related reports: $1.1 billion in reported losses
- Business and job opportunities: $833 million in reported losses
Identity Theft on the Rise
In addition to financial fraud, the FTC also received over 1.1 million reports of identity theft in 2022 through its IdentityTheft.gov website. This highlights the need for consumers to take steps to protect their personal information and be aware of potential identity theft scams.
FTC’s Consumer Sentinel Network
The FTC’s Consumer Sentinel Network receives data from 23 states and provides valuable insights for law enforcement investigations. The agency urges consumers to remain vigilant and report any suspected fraudulent activity to help combat this growing problem.
How to Stay Safe
To stay safe from financial fraud, the FTC recommends:
- Being cautious when investing in the stock market or other financial instruments
- Never giving out personal information to unknown individuals or companies
- Verifying the identity of individuals or companies before conducting business with them
- Keeping sensitive information, such as passwords and credit card numbers, secure
Report Suspected Fraudulent Activity
If you suspect fraudulent activity, report it to the FTC at ftc.gov/complaint. Your report will help the agency investigate and prosecute fraudulent activities.
Explore the Data
A breakdown of the data is available on the FTC’s data analysis site at ftc.gov/exploredata, which provides detailed information on reported frauds by state, metropolitan area, and subcategory.