This is what consumer fraud costs them.

Every year, fraud costs Americans billions of dollars. Find out just how many frauds there are at the moment and which ones.
In 2022, American consumers lost $8.8 billion to fraud, a 30% increase over 2021, according to the Federal Trade Commission’s most recent statistics. That amounts to a median per report of around $650.

Learn about the five types of scams that were most commonly reported last year, as well as the channels that scammers are most likely to use, to help shield you and your loved ones from becoming victims.

Top 5 Fraud Types
In 2022, Americans reported fraud in an estimated 2.3 million cases, down from 2.9 million in 2021. However, despite the decline in report volume, customer financial losses grew.

  1. Imitation Scams
    725,989 reports total.
    22% of reports claim to have lost money.
    Loss overall: $2.6 billion
    Average loss: $1000

In imposter scams, con artists get in touch with you—often via email, text message, or phone call—while posing as a reliable entity who needs your money or personal information. The most typical impostor frauds involve thieves who pose as:

  • Representatives of many departments of the government, including the Internal Revenue Service.
  • Representatives of fictitious organizations.
  • In an emergency, the victim’s grandchild or another relative.
  • Employees of a bank or business you do business with.
  • Technical help stating that there is a security risk to your PC.

According to Steve Weisman, a lawyer and nationally understood expert in scams, identity theft, and cybersecurity, tech support scams most frequently happen when a pop-up appears on your computer indicating a problem and you are instructed to call the scammer, who frequently assumes the identity of Microsoft, Apple, or some security company.

The scammer can then use the victim’s computer to gain remote access, steal passwords and other personal information, and commit identity theft, according to Weisman. “They then charge for unnecessary amenities or, worse yet, may lure the victim into providing this access,”

2. Online frauds involving bad reviews and shopping
327,000 reports total.
47% of reports claim to have lost money.
Loss overall: $358 million
Loss on average: $180

Scams involving internet shopping involve placing an order, paying for it, and then not receiving the product you ordered. It’s possible for the goods to never arrive or for you to get something different from what you ordered. When you get in touch with the company, they won’t give you a refund or do anything else to fix the issue.

“The majority of victims of this trick report that they purchased concert tickets from social networking sites or bought goods through online auctions, including cars, but never received the goods or that the concert tickets turned out to be false. They are urged to pay via a payment app, wire transfer, or gift card, but they are unaware that once they send the money, they cannot get it back, said Darius Kingsley, Chase Bank’s head of consumer business practices.”

3. Lottery, Prize, and Sweepstakes Scams
143,132 reports total.
13% of complaints claim to have lost money.
Loss overall: $302 million
Loss on average: $907

Scams involving prizes, sweepstakes, and lotteries entail a con artist contacting you and claiming you’ve won something. Then, in order to claim your prize, they request that you make a payment or supply your payment information. If you give in, they grab it and flee. You should never be required to pay anything or give your financial information in order to get a prize if you win one.

4. Scams Associated With Investment
104,703 reports total.
74% of reports claim to have lost money.
Loss overall: $3.8 billion
Loss on average: $5,000

Scammers who target investors may pitch you with an investment opportunity through an infomercial or internet advertisement. They frequently make the promise that the investment is quick, simple, and little risk, and they could have endorsements from “real” people who say it is legitimate. However, when you invest your money, they fail to deliver the promised return, if they do so at all.

5. Fraudulent Business and Job Opportunities
92,723 reports total.
32% of complaints claim to have lost money.
Loss overall: $367 million
Loss on average: $2,000

Scams involving businesses and employment opportunities make promises to assist victims in earning money online so they can leave their day jobs. Scammers frequently offer enticing outcomes in exchange for your money or attendance at their training courses. Unfortunately, a lot of victims discover that their outcomes fall short. Companies that use high-pressure sales techniques and those who promise easy money quickly should be avoided.

How to Avoid Being a Fraud Victim
Being aware of popular con games like the ones outlined is one method to prevent becoming a victim of fraud. Informing senior friends or family members about typical scams is important since they are frequently more susceptible and may have more money at stake.

It’s also a good idea to think twice before giving anyone who contacts you any personal information or money.

“Don’t reply to an email, phone call, or text message that requests you for your financial or personal data, including asking you to send money or cryptocurrencies to avoid a service interruption, prepay taxes on an award, or receive your delivery,” advises Kingsley.

Many businesses and organizations only use particular channels for communication.

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