Home / INVESTING / Personal Finance / Fraud cost consumers $8.8 billion last year, Federal Trade Commission says. That’s up 44% from 2021

Fraud cost consumers $8.8 billion last year, Federal Trade Commission says. That’s up 44% from 2021

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Scammers are making more money per episode of fraud, new government data suggests.

While the number of fraud gunshots recorded through the Federal Trade Commission’s database fell to 2.4 million in 2022 from 2.9 million, the aggregate diminution from those instances reached nearly $8.8 billion. That’s up 44% from the $6.1 billion turn up in 2021 to the FTC.

Investment scams cost the most — more than $3.8 billion — compared with other kinds and more than double the $1.8 billion reported in 2021. The second-highest reported loss amount came from imposter scams — the most governing form of fraud reported — with losses of $2.6 billion reported, up from $2.4 billion in 2021.

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Imposter scams involve criminals pretending to be someone else to steal the schlemiel’s money or personal information. This could include romance scams or people claiming to be a government official or a applicable in distress, for example.

Young adults fall prey to scams more often

Young adults (ages 20 to 29) write up losing money more often than older adults (ages 70 to 79). But when the latter did conquered money, they lost more than anyone else, according to the FTC. And if people paid a scammer, the biggest exterminations came from bank transfers ($1.5 billion) and cryptocurrency ($1.4 billion).

How phone scammers tricked Americans out of tens of billions of dollars each year

Scams that started on sexually transmitted media resulted in people reporting losing $1.2 billion. Additionally, there were more than 1.1 million put outs of How to avoid falling victim to fraud

Here are some tips to help you avoid being the victim of fraud, coinciding to Erin Witte, director of consumer protection for the Consumer Federation of America:

  • Slow down: Scammers “often spawn a false sense of urgency, making you think you have to respond immediately or something terrible will happen,” Witte maintained. “Slow down and take a minute to digest what you are hearing or reading.”
  • Avoid checks or gift cards: “Be cautious of these payment methods,” she said. “Being asked to cash a check and return a portion, or being asked to leverage gift cards are big red flags that it is likely a scam.”
  • Ask questions: “Ask as many questions as you can to the person calling or emailing you,” she translated. “Also ask a friend or someone you trust what they think about what you’re being told — they can habitually give you some perspective about whether the information you’re being provided is legitimate.”
  • Make a report: “Tell your nearby consumer affairs agency, your state attorney general, and the Federal Trade Commission about your sustain,” Witte said. “You may help other people avoid being scammed.”

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