The Federal Trade Commission (FTC) recently revealed that US consumers reported losing more than $12.5 billion to fraudulent schemes in 2024.
This latest figure from the FTC marks a significant 25% increase from the previous year, highlighting a concerning escalation in financial losses despite ongoing efforts to combat scams.
The newly released data, detailed in the FTC’s annual Consumer Sentinel Network report, reveals an environment of evolving criminal tactics and heightened consumer vulnerability in an increasingly digital world.
The $12.5 billion in reported losses stands out not because of a surge in fraud reports—which remained stable at approximately 2.6 million, nearly identical to 2023—but due to a sharp rise in the percentage of victims who lost money.
In 2023, 27% of those reporting fraud experienced financial loss; by 2024, that figure jumped to 38%, an 11% increase.
This shift suggests that scammers are becoming more effective at extracting funds, targeting victims with precision and exploiting trust across various channels.
Investment scams topped the list as the most lucrative category for fraudsters, accounting for $5.7 billion in losses—a 24% increase from the prior year.
These schemes, often promising high returns with little risk, preyed on consumers’ financial aspirations, making them the single largest contributor to the 2024 total.
Following closely were imposter scams, which raked in $2.95 billion. Within this category, government imposter scams saw a notable spike, with losses rising by $171 million to reach $789 million.
Here, criminals posed as representatives from agencies like the IRS or FEMA, leveraging authority to deceive victims into parting with their money.
The FTC data also revealed a shift in payment methods favored by scammers.
In 2024, consumers reported losing more to scams involving bank transfers or cryptocurrency than all other payment methods combined.
These methods, reportedly known for their speed and irreversibility, have become prime tools for fraudsters, complicating recovery efforts for victims.
Phone calls ranked as the second most common contact method, trailed by text messages, underscoring the blend of traditional and modern tactics in today’s fraud landscape.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the dynamic nature of these threats:
“The data we’re releasing today shows that scammers’ tactics are constantly evolving.”
He stressed the agency’s commitment to monitoring trends and protecting consumers, a mission supported by the Consumer Sentinel Network.
This database, which compiles reports from consumers, law enforcement, and organizations like the Better Business Bureau, logged 6.5 million total entries in 2024, including fraud, identity theft, and other complaints.
The $12.5 billion figure likely underrepresents the true scope of fraud, as many victims never report their losses due to embarrassment or lack of awareness.
Beyond investment and imposter scams, job and employment scams also surged, with reported losses climbing nearly $250 million to $750.6 million.
Online shopping fraud rounded out the top categories, reflecting the broad spectrum of vulnerabilities in a digital economy.
As the FTC continues its comprehensive approach to detect and deter these financial crimes, the considerable 25% jump in losses signals an urgent need for heightened consumer education and vigilance in 2025.