Categories of Scams and Fraud
Scamming has been part of society for a really long time now. There has been a lot of money being taken away from innocent people that unfortunately fall right on the traps of those who desperately want to take their money away, who are also known as scammers. This being said, there are multiple types of scams and for each method or type, it has been reported that billions and billions of dollars have been unwillingly taken away from people for years. According to the Federal Trade Commission, the top categories include:
- Imposters.
- Online shopping and negative reviews.
- Prizes, sweepstakes, lotteries.
- Investments.
- Business and job opportunities.
In fact, the most reported scam category last year in 2023, was imposter scams. Keep in mind, another method that scammers have now started to use is through email. Actually, email displaced text messages, held the top spot in 2022, interestingly after decades phone calls being the most common used.
Statistics of Scammed Money
Furthermore, in 2023, a total of 2.6 million people reported fraud, and a grand total of more than $10 billion were reported lost. This is very significant because it shows how it is increasing day by day compared to 2022. Going back to 2022, there were 2.5 million fraud reports, and $9 billion that were lost in total. This goes to show that there was a 14% increase in reported money losses in 2023 compared to 2024.
Now to go a little more in specific with the statistics of money lost per category, according to the Federal Trade Commission, “Consumers reported losing more money to investment scams more than $4.6 billion than any other category in 2023. That amount represents a 21% increase over 2022. Moreover, the second highest reported loss amount came from imposter scams, with losses of nearly $2.7 billion reported. In 2023, consumers reported losing more money to bank transfers and cryptocurrency than all other methods combined.”
The Reality for Victims
Unfortunately, these fraud statistics are very eye opening, and they come to show that this issue of scamming people is a real thing that is impacting people negatively. This can eventually take people to bankruptcy, and this is devastating for everyone that has to face these types of monetary challenges.
Also, a lot of the times, people who experience a scamming situation or are put through it, can definitely take a toll on them because unwillingly and unfortunately, they are put in a place where it is extremely hard to believe if it is true or if it is a lie. Scammers are evolving and they are coming up with new strategies every day. They do this so that they can make it even harder for people to differentiate the fraud scams. This is unbelievable because scammers tend to target the most vulnerable individuals in society, like older adults and people with disabilities. This is why the Federal Trade Commission is working on this to decrease the amount of people being scammed.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection stated the following, “Digital tools are making it easier than ever to target hard-working Americans, and we see the effects of that in the data we’re releasing today. The FTC is working hard to take action against those scams.”
Most Common Lies They Use
The FTC has listed 10 common lies that scammers use for fraud, in order for people to keep an out for. The reason being because they are really aiming to take as much money as possible from people who are not aware of their techniques, and they are the following:
- Only say what I tell you to say.
- Act now!
- Don’t trust anyone.
- Don’t hang up.
- Do this or you could be arrested.
- Move your money to protect it.
- Withdraw cash and give it to (anyone AKA a scammer)
- Go to Bitcoin ATM.
- Withdraw money and buy gold bars.
- Buy gift cards.
These are a few of their most commons strategies. People have to be aware that they can manipulate a person so effectively to give in completely. Also, they tend to be very persistent and pushy to give personal information in order to commit fraud. Remember, don’t give information unless they are someone known and that is 100% trustworthy. If people do end up in the unfortunate circumstance of getting scammed, block any type of communication with them. The FTC also strongly suggests reporting it as soon as possible at ReportFraud.ftc.gov.
Written by Jeanette Sanchez
Sources:
CBS NEWS: 10 lies scammers tell to separate you from your money
Daily Mail: Revealed: The lies scammers tell you to get your money
Forbes: Scams To Beware In 2024
Federal Trade Commission: As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public
Featured Image Courtesy of Daniel Foster Flickr Page-Creative Commons License
Inset Image Courtesy of Rusty Clark ~ 100K Photos Flickr Page-Creative Commons License
