In a stark reminder of the growing sophistication of financial scams, newly released data from the Federal Trade Commission (FTC) reveal that consumers reported losses totalling $12.5 billion to fraud in 2024 – a 25% increase from the previous year.
Consumer losses to fraud soar to $12.5 billion
The surge underscores an alarming trend: while the number of reported fraud cases remained relatively stable, the proportion of individuals who actually lost money to scams saw a double-digit rise.
The FTC’s latest Consumer Sentinel Network report indicates that while fraud reports held steady at 2.6 million for 2024, 38% of consumers who reported fraud also reported financial losses, compared to 27% in 2023.
This data suggests that fraudsters are becoming increasingly effective at deceiving victims, extracting larger sums per incident.
Investment Scams and Imposters Drive Record Losses
Among the various types of fraud, investment scams accounted for the largest share of reported losses, reaching $5.7 billion – a 24% jump compared to 2023.
These scams, often involving fake cryptocurrency investments or fraudulent trading platforms, continue to lure unsuspecting victims with promises of high returns.
Following investment fraud, imposter scams caused $2.95 billion in losses, making them the second most damaging category.
Government imposters, in particular, were responsible for $789 million in reported losses, marking a significant $171 million increase over the previous year.
Bank Transfers and Cryptocurrency
The FTC report highlights a major shift in payment methods exploited by scammers.
In 2024, victims lost more money through bank transfers and cryptocurrency transactions than through all other payment methods combined.
The irreversible nature of these transactions makes them particularly attractive to fraudsters, as they minimise the chances of recovery for victims.
Scammers’ Contact Methods: Email Leads
For the second consecutive year, email was the most common initial contact method used by scammers.
Phone calls and text messages followed closely behind, continuing to serve as primary channels for fraudsters to lure victims into scams.
Expanding Categories of Fraud
The FTC also noted a sharp increase in job and employment agency scams.
Reports in this subcategory tripled from 2020 to 2024, with total reported losses skyrocketing from $90 million to $501 million.
As more people seek online employment opportunities, fraudsters have adapted, exploiting job seekers with fake offers and deceptive recruitment tactics.
FTC’s Response
The FTC relies on its Sentinel Network database, which compiles reports from federal, state, and local law enforcement agencies, as well as industry partners and consumer advocacy groups.
In 2024 alone, the database received 6.5 million reports, including fraud, identity theft (1.1 million reports), and financial complaints against credit bureaus, banks and lenders.
While the FTC does not intervene in individual cases, its data serves as the foundation for law enforcement investigations.
Consumers are encouraged to report fraud via ReportFraud.ftc.gov, where they can also access guidance on potential recovery options.
With fraud losses reaching historic levels, the financial industry, policymakers and enforcement agencies face a growing challenge in combating sophisticated scams and ensuring the integrity of digital transactions.
For a detailed breakdown of the FTC’s 2024 fraud report, visit ftc.gov/exploredata, where data dashboards provide insights into fraud trends by state, metropolitan area and consumer demographics.
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