The annual fraud report released by the FTC shows that while fraud complaints in the U.S. saw a slight decline in 2024, the losses incurred by fraud victims have significantly increased compared to the previous year. The data reveals that fraud complaints decreased to 2.6 million from 2.62 million in 2023, but the monetary losses surged by 25% to a staggering $12.5 billion.
A concerning trend highlighted in the report is the fact that more individuals fell victim to fraud in 2024. According to the data, one in three (33%) of the 2.6 million complaints resulted in financial loss, a notable increase from the previous year’s figure of one in four (25%). This increase in financial losses can be attributed to the advancement of technology, specifically AI and deepfakes, which have made scam tactics more convincing, particularly in phishing and spoofing attacks.
One of the key areas of concern identified in the FTC fraud report is the rise in identity theft complaints, which increased to 1.14 million in 2024 from 1.04 million in 2023. Additionally, the category of “other” complaints witnessed a significant surge, escalating from 1.91 million reports in 2023 to 2.76 million in 2024. This category encompasses various industries such as credit bureaus, banks and lenders, debt collection, auto-related businesses, credit cards, and other financial services.
Among the different types of fraud reported, investment-related fraud emerged as the most costly, with 79% of the complainants experiencing financial loss. The median loss associated with investment fraud was $9,196 in 2024, up from $8,000 in 2023. In total, victims lost a staggering $5.7 billion to investment scams. The report also highlighted the significant growth in business and job-related fraud, which has climbed to the third position in terms of financial losses since 2020, doubling the number of complaints during that period.
Other costly fraud types in 2024 included mortgage foreclosure relief and debt management, prizes, sweepstakes, and lotteries, as well as travel, vacation, and timeshare plans. Imposter scams were the most common source of fraud complaints, with nearly 846,000 cases reported. However, victims only lost money in 22% of these instances, with a median loss of $800.
The report also emphasized the importance of being cautious and vigilant to avoid falling victim to fraud. It recommended blocking unwanted calls and texts, reporting them as spam, and exercising caution when receiving unexpected requests for money or personal information. The FTC advised individuals to be wary of pressure tactics or urgent appeals, as these are common strategies employed by scammers. Additionally, it urged individuals to report any fraudulent attempts to the FTC to help combat the growing threat of fraud.
In conclusion, the FTC fraud report paints a concerning picture of the increasing monetary losses incurred by fraud victims in the U.S. Despite a slight decline in the number of fraud complaints, the significant rise in financial losses underscores the need for heightened awareness and preventive measures to safeguard individuals from falling prey to scams. As technology continues to evolve, it is crucial for individuals to remain vigilant and proactive in protecting themselves from fraudulent activities.