According to the latest data from the FTC, consumers have reported losing almost $8.8 billion to fraud in 2022, representing a rise of over 30% from the previous year. The Consumer Sentinel Network Data Book, which compiles reports from various sources, provides insight into these trends. The 2022 figures reveal concerning patterns regarding the tactics employed by scammers.
Some stats your way
While the number of scams reported in 2022 (2.4 million) was lesser than that of 2021 (2.6 million), the total loss of $8.8 billion far surpasses the $6.1 billion from 2021.
- Among the top five fraud schemes, imposter scams topped the list, followed by online shopping scams; prizes, lotteries, and sweepstakes scams; investment scams; and job opportunities.
- Victims reported losing $2.6 billion in imposter scams last year. Only business imposter scams (scammers claiming affiliations with popular firms) resulted in a total loss of $660 million in 2022.
- People lost $3.8 billion to investment scams, while losses pertaining to social media scams recorded $1.2 billion.
- The U.S. states with the highest number of reported frauds were Georgia, Delaware, Nevada, Florida, and Maryland.
Why should you care?
The misappropriation of $8.8 billion by scammers results in a corresponding reduction of $8.8 billion in the purchasing power of consumers. Furthermore, the proliferation of scams is a concerning development, as it potentially exposes companies to reputational harm. It is important to note that these financial losses are further compounded by the intangible impact on consumer trust in the marketplace, which cannot be quantified.
Top scams to watch out for
- ChatGPT-based scams: Attackers created an unofficial ChatGPT social media page and added misleading posts with typosquatting domains for official websites. They’d deploy Windows and Android malware through these campaigns.
- Youtube scams: Threat actors utilized a vast network of fake YouTube videos to promote fraudulent web-based applications for USDT. This led to over 900 victims falling prey to cryptocurrency investment scams, resulting in over $100,000 in revenue.
- Pig Butchering scam: Con artists communicate with targets (referred to as "Pigs") on social media for a prolonged period of time to gain their trust and create the illusion of a fake friendship or romantic relationship. The scam could span from cryptocurrency investment schemes to fake gold-trading offers.
The bottom line
As technology continues to advance, so do the tactics used by cybercriminals. The prevalence of scams and frauds aimed at exploiting unsuspecting victims for financial gain is on the rise, with attackers utilizing various techniques to deceive users. Education, awareness, and proactive defense are key to staying safe in today's digital landscape.
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