FTC Reports Record-Breaking $10 Billion Lost to Fraud in 2023

In a startling revelation by the Federal Trade Commission (FTC), consumers reported losing over $10 billion to various forms of fraud in 2023, setting a new and unwelcome record. This figure represents a significant 14 percent increase from the losses reported in 2022. Investment scams were the primary culprits, accounting for more than $4.6 billion of the total losses, marking a 21 percent increase from the previous year. Imposter scams followed, with victims reporting nearly $2.7 billion in losses.

Interestingly, the methods of transferring money to fraudsters have evolved, with bank transfers and cryptocurrency transactions now surpassing other methods combined. Despite the rise in financial losses, the number of fraud reports remained steady at 2.6 million consumers, mirroring the volume reported in 2022. Imposter scams continue to be the most frequently reported category, with online shopping issues and schemes involving prizes, sweepstakes, lotteries, investments, and business or job opportunities also topping the list.

A notable shift occurred in the communication methods used by scammers to reach their targets. For the first time, email emerged as the most common method, overtaking text messages and phone calls, which had been the dominant mediums in previous years. The FTC is actively monitoring these trends and implementing strategies to combat consumer fraud. Their comprehensive approach in 2023 encompasses a range of efforts aimed at detecting, stopping, and preventing fraud. Detailed insights and a full breakdown of the 2023 fraud reports are available on the FTC’s data analysis website.