FTC’s Latest Findings: Alarmingly High Financial Losses Linked to Scams

The 2024 FTC report reveals consumer fraud losses surged to $12.5 billion, fueled by rising investment and imposter scams.

Quick Takes

Consumer fraud losses rose from $10 billion in 2023 to $12.5 billion in 2024.
Investment scams accounted for $5.7 billion in losses.
Imposter scams were the most reported type of scam.
Email was the primary method scammers used to contact victims.

Escalating Financial Impact of Consumer Fraud

The Federal Trade Commission (FTC) has unveiled startling figures in its 2024 report, highlighting a significant rise in consumer fraud losses. Consumers faced a financial blow of $12.5 billion, a stark increase from $10 billion last year. The report specified investment scams as the most financially damaging, with losses climbing to $5.7 billion, underscoring the pervasive threat these schemes pose to the public.

The percentage of individuals losing money to fraud swelled from 27% to 38%. Imposter scams emerged as the most frequently reported type, marking an area of concern for both consumers and regulatory bodies. The unchanged number of fraud reports stands at 2.6 million, but the increase in financial losses reflects the scammers’ growing sophistication.

New FTC data show a big jump in reported losses to fraud to $12.5 billion in 2024. Consumers reported losing the most to investment scams at $5.7 billion: https://t.co/h6bVFglPXb /1

— FTC (@FTC) March 10, 2025

Scam Tactics and Their Pervasiveness

Email remains the primary medium for these scams, while bank transfers and cryptocurrency are frequently exploited for such fraudulent activities. The staggering increase in government imposter fraud losses from $171 million in 2023 to $789 million in 2024 further illustrates the calculated and persistent nature of scammers. Online shopping scams were identified as another growing area, marking the second most reported fraud category in the report.

A notable trend is the increased use of social media by scammers, where 70% of victims experienced financial losses, totaling $1.9 billion. Younger demographics report more frequent victimization, yet older adults incur greater financial consequences. This trend emphasizes the need for ongoing public awareness and preventative measures.

FTC’s Vigilant Efforts and Future Strategies

The FTC remains committed to monitoring these evolving trends and implementing strategies that protect consumers from fraudulent activities. The agency’s Consumer Sentinel Network collaborates with various entities to track and analyze these fraudulent practices, serving as an essential tool in combatting consumer fraud.

By studying these data points, the FTC aims to reinforce consumer protection measures while adapting to the ever-changing landscape of scams. Staying informed and skeptical of unsolicited contacts, particularly through email and social media, remains crucial in safeguarding personal and financial information.