Protect Yourself: Fraud Losses Surge 25% in 2024

Consumers reported losing more than $12.5 billion to fraud last year, representing a 25% increase over the previous year, the Federal Trade Commission reported yesterday. The FTC received fraud reports from 2.6 million consumers last year, which was roughly the same as the year before. However, the percentage of people who reported losing money to fraud or scams increased from 27% in 2023 to 38% in 2024. Investment scams accounted for the most fraud losses at $5.7 billion, representing a 24% increase over the previous year. The second highest reported loss amount came from imposter scams at $2.95 billion. Imposter scams were also the most commonly reported scam, with losses to scammers posing as government officials rising from $171 million in 2023 to $789 million in 2024. Consumers reported losing more money to scams where they paid with bank transfers or cryptocurrency than all other payment methods combined, according to the FTC. Email was the most common way that consumers reported being contacted by scammers. Phone calls were the second most commonly reported contact method for fraud, followed by text messages.   Information above provided by the ABA Banking Journal from the American Bankers Association.   Here are a few ways you can better protect yourself from becoming a victim of fraud:

1. Be Cautious with Investment Offers: Since investment scams account for the highest losses, thoroughly research any investment opportunity before committing your money. Avoid pressure to act quickly.
2. Verify Unexpected Requests: Imposter scams, especially those involving fake government officials, are rising. Always verify the identity of anyone requesting money or sensitive information by contacting the organization using official contact information.
3. Be Wary of Unsolicited Emails and Calls: Since email and phone calls are the most common scam contact methods, avoid clicking links or sharing personal information through unexpected messages.
4. Use Secure Payment Methods: Bank transfers and cryptocurrency are linked to the highest losses. Consider using safer payment options like credit cards, often providing better fraud protection.
5. Stay Alert for Urgent or Threatening Language: Scammers often use fear tactics to push victims into quick decisions. Pause, assess the situation, and seek advice before responding.

By staying informed and cautious, you can reduce your risk of falling victim to these growing scams.