FTC reveals data in 2023’s top scams
The year 2023 witnessed a surge in fraudulent activities, with losses totaling a staggering $10 billion, as revealed in a recent presentation by Ethnic Media Services on February 9th with FTC representatives. This marked increase from the previous year's $9 billion underscores the growing threat posed by scammers across various platforms and mediums and the importance of being aware of the techniques scammers use to ensure you and your loved ones are safe.
Maria Mayo, Acting Associate Director for the Division of Consumer Response and Operations in the Bureau of Consumer Protection at the Federal Trade Commission (FTC), shed light on the evolving landscape of scams. Mayo highlighted impostor scams as the most prevalent, where perpetrators impersonate trusted entities such as businesses or government agencies. One alarming tactic involved a fake U.S. Marshal contacting consumers under the guise of addressing fraudulent banking activity, ultimately persuading them to transfer funds to a cryptocurrency wallet. Business impostor scams alone accounted for losses reaching $752 million in 2023, a notable increase from the previous year. Online shopping scams, fraudulent prize schemes followed impostor scams as the most prevalent and have done so since 2021. The fourth and fifth most common methods were investment-related fraud, and deceptive job opportunities Notably, while investment related scams is the 4th most reported scam, it’s where consumers reported more losses (4.6 billion dollars) and has steadily grown since 2021. In addition, email emerged as the most reported method of fraud, constituting 24% of all reports, surpassing text messages for the first time. However, it’s not the only place to be careful. Mayo emphasized the prevalence of social media scams, particularly in the realm of online shopping, where unsuspecting consumers fall victim to enticing advertisements and make payments for non-existent products. Lois Greisman, Associate Director of the FTC's Division of Marketing Practices, highlighted scams targeting specific ethnic communities, such as the "Ganadores" scheme aimed at Spanish-speaking consumers. This program, along with others like the Blessings In No Time investment scheme targeting African Americans, underscores the need for targeted enforcement actions to protect vulnerable populations and the importance of reporting. Greisman emphasized that such reports not only aid in law enforcement efforts but also inform preventative initiatives: "When we see text messages become a more frequent point of initial contact, we can reach out to the telecommunications industry, and tell them they have a problem and see how they can solve it to protect consumers," said Lois Greisman. Larissa Bungo, Senior Attorney in the Division of Consumer & Business Education at the FTC, emphasized the agency's commitment to assisting consumers in reporting fraud and obtaining support in multiple languages. Bungo encouraged individuals to utilize resources provided by the FTC to prevent falling victim to scams and to report fraudulent activities promptly: "We hope communities use and share our resources to prevent scams," she added. Report Fraud, Scams, and Bad Business Practices Call 877-382-4357 from 9 a.m. to 5 p.m. ET. Press 3 for a list of languages. Or English at ReportFraud.ftc.gov Or Spanish at ReporteFraude.ftc.gov Report identity theft. Call 877-438-4338 from 9 am to 5 pm ET. Press 3 for a list of languages, and then 0 for more languages. Or English at identitytheft.gov Or Spanish at RobodeIdentidad.gov |