Investment Fraud Tops List: Consumers lost over $12.5 billion to scams in 2024, a 25% increase from 2023, according to Federal Trade Commission (FTC) data.
Despite 2.6 million fraud reports, the percentage of consumers reporting financial losses rose from 27% in 2023 to 38% in 2024. Investment scams caused the most losses, totaling $5.7 billion, followed by imposter scams at $2.95 billion.
Investment Scams Lead in Losses
Scams saw a 24% increase in losses as scammers targeted consumers with fraudulent investment schemes. Bank transfers and cryptocurrency were the most common payment methods.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, warned, “Scammers are evolving. Consumers must stay vigilant.”
FTC Returns $25 Million to Victims
Investment Fraud Tops List: The FTC is issuing $25.5 million in refunds to consumers tricked into purchasing unnecessary computer repair services from Restoro Cyprus Limited and Reimage Cyprus Limited.
The FTC accused the companies of using deceptive marketing tactics to exploit consumers. Following a settlement order, both companies are banned from misrepresenting security issues or engaging in deceptive telemarketing.
Biggest Increases in Scam Losses
The largest losses came from:
- Government imposter scams: $789 million, up $171 million from 2023.
- Business and job opportunity scams: $750.6 million, up $250 million.
- Job and employment agency scams: $501 million, up from $90 million in 2020.
Contact Methods Used by Scammers
Scammers contacted victims most often via email, followed by phone calls and text messages.
The FTC urges consumers to report suspicious activities on its website to aid future investigations.
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Source: FTC.gov