Scammers stole record-breaking $12.5B from Americans in 2024, FTC says
The total dollars lost was 25% higher than reported losses in 2023 when the old record was set at more than $10 billion lost to scammers.
It's not that consumers are reporting more scams, according to the FTC. Fraud reports remained stable. Instead, consumers are reporting losing more money.
In 2024, some 38% of consumers reported losing money to fraud and scams. That's up from 27% in 2023, according to the latest Consumer Sentinel Network Data Book.
Nearly half of the dollars lost — some $5.7 billion — involved money that consumers lost to investment scams, the single largest scam last year. That is a 24% jump from 2023.
The median loss involving investment scams was more than $9,000.
Consumers reported losing more money to scams where they paid with bank transfers or cryptocurrency than all other payment methods combined. People reported losing $2 billion via bank transfer or payment and $1.4 billion was lost via cryptocurrency.
Consumers made 2.6 million fraud reports nationwide in 2024 to various agencies, roughly the same number as 2023, according to the latest Consumer Sentinel Network Data Book.
The Consumer Sentinel Network is managed by the FTC but compiles consumer complaints from a variety of sources, including the AARP Fraud Watch Network, United Parcel Service, the Better Business Bureau, the Michigan Attorney General and other AGs across the country, Publishers Clearing House, the Microsoft Corp. Cyber Crime Center, and the Consumer Financial Protection Bureau. More than 20 states contribute data to Sentinel.
Unfortunately, consumers are being hit at every turn by one scam or another. Scammers reach out through emails, phone calls and texts.
Michigan consumers reported losses totaling $204 million to all types of fraud in 2024. That's up from $151.7 million in 2023. The median loss was $305 in 2024.
Younger consumers are kidding themselves if they think that only seniors lose money to these outlandish schemes.
While seniors tend to lose the most money, younger consumers are falling victim to scams, too.
The FTC's data book this year included a new dashboard showing more detail on fraud reports received for each state broken down by age. Not every report received by consumer watchdogs includes an age for the person filing the report but many reports disclose that information.
The $204 million overall figure for Michigan's reported fraud includes money lost by many consumers who did not report their age.
Looking closely at the information by age category for Michigan, though, we can see that nearly $45.9 million was reported lost to scams and fraud by Michigan consumers ages 60 and older.
Nearly $40.7 million was reported lost to scams and fraud by Michigan consumers ages 59 and younger.
In Michigan, for example, the data indicated that 4,339 reports about fraud and scams were made last year by consumers in the 30- to 39-year-old age bracket. Total losses reported by that group of Michigan consumers was about $8.6 million. The median loss was $309.
Among Michigan consumers ages 80 and older nearly $6.1 million was reported lost to scams. But the median loss was the highest of any age group at $2,228 for those 80 and older. Consumer watchdogs received 1,310 reports about scams from Michigan consumers ages 80 and older.
The biggest total dollars lost and the most reports of fraud — 5,510 — involved Michigan consumers in the 60- to 69-year-old age group. The total reported losses in that age group was a bit more than $24 million. The median loss was $498 in 2024.
The top five scams reported by Michigan consumers involved situations where crooks impersonated a well-known business; offered bogus deals to online shoppers; pretended to be someone from an official government agency; made phony promises involving fake sweepstakes, prizes and lotteries, and pitched scams involving fake jobs and employment agencies.
"Scammers' tactics are constantly evolving,' warned Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, in a statement.
Regularly, we're being warned to think twice before trusting the person who reached out to us.
Nationwide, the second highest reported dollar losses involved some type of imposter scam, with $2.95 billion reported lost across the country.
Scammers are impersonating local law enforcement by calling or emailing consumers about jury duty. They're demanding that consumers pay up because the consumer somehow missed showing up for jury duty.
The crooks are either out to get your money on a gift card or via cryptocurrency. Or they want to get your Social Security number or other personal information.
No government agency is going to call you out of the blue and demand you pay any fine. And they're not asking that you send crypto or buy gift cards.
When it comes to government imposter scams, according to the FTC's Consumer Sentinel Network, crooks are most likely to ask you to pay money by putting cash on a gift card and reading back numbers to them.
Be careful when you pick up the phone. People lost more money per person — a median loss of $1,500 — when they interacted with scammers on the phone, according to the FTC.
You're most likely to be contacted by phone when crooks impersonate federal, state and local government agencies. Crooks frequently impersonate the Social Security Administration, Medicare, the US Postal Service, U.S. Customs and Border Protection, the Federal Trade Commission and the Internal Revenue Service.
The median reported loss to an IRS impersonation scam was $319, according to FTC data. Some $9.14 million was lost to IRS impersonation scams in 2024.
The median loss to a Social Security impersonation scam was $1,200 last year. Some $130.76 million was lost to scammers impersonating Social Security employees in 2024, according to the latest FTC data.
The median loss was $3,040 to impersonation scams when crooks pretended to be from a local police department, sheriff's office or the FBI. Some $18.8 million was lost to those scams.
More: Just lost your job? Watch out for the con artists who target people who are out of work
More: IRS identifies most dangerous tax scams that can delay your refund. Here are 5 to avoid
More: Cash, bitcoin, gold scams in metro Detroit send couriers, directions to ATMs
Scammers know that people who are searching for work can be tricked into responding to a text about a promising paycheck.
The latest data showed that consumers nationwide made 104,926 reports in 2024 involving a subcategory called "job scams and employment agencies." In all, $501 million was reported lost to job-related scams. The median amount lost by consumers was $2,400 in 2024 to such scams.
That's up substantially from the previous year when 68,469 total reports were made by consumers about job scams and employment agencies. In 2023, consumers reported losing $238 million to such scams, with the median loss hitting $2,004 for individuals.
Consumers can report scams to the Michigan Attorney General's consumer protection division. The address to mail a complaint is: Consumer Protection Team; P.O. Box 30213; Lansing, MI 48909. The toll free number is 877-765-8388. New consumer complaints can also be made online. See Michigan.gov/ag for information.
Consumers can make complaints at ReportFraud.ftc.gov where they also will receive information about some steps on how to possibly try to recover their money. These reports are a vital part of the agency's law enforcement mission and also help the FTC to warn consumers about fraud trends in the data.
The FTC uses the reports it receives through the Sentinel network as the starting point for many law enforcement investigations. Reports are shared with federal, state and local law enforcement.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: Consumers lose even more money to scams, as investment scams spike
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
41 minutes ago
- Yahoo
US FTC demands better policing of 'Made in USA' online sales claims
By Jonathan Stempel (Reuters) -The U.S. Federal Trade Commission on Tuesday called on and Walmart to crack down on third-party sellers that make deceptive "Made in USA" claims on the retailing giants' online marketplaces. In letters to Amazon and Walmart, the FTC said it learned of several instances where third-party sellers falsely claimed their products were made in the United States. The FTC urged both companies to take "corrective action" against sellers whose "Made in USA" claims violate federal law and Amazon's and Walmart's codes of conduct. Four smaller retailers also received FTC warning letters demanding they cease "Made in USA" claims unless they prove "all or virtually all" of the products in question are made domestically. The four retailers are Oak Street Bootmakers in Chicago; Stand Flag Poles in Fort Lauderdale, Florida; football equipment maker Pro Sports Pads in Jacksonville, Florida, and medical products maker USA Big Mountain Paper, also in Jacksonville. Walmart had no immediate comment. The other five companies did not immediately respond to requests for comment. "Consumers want to have confidence that when they buy something labeled 'Made in the USA' they are actually supporting American workers and the American economy," FTC Chairman Andrew Ferguson said in a statement. Many companies have been accused by regulators or in private lawsuits of using imprecise labeling to induce shoppers to pay more, including through appeals to their patriotism. In 2021, the FTC adopted a "Made in USA Labeling Rule" to protect businesses and consumers. The agency later brought cases against kitchenware and home furnishings retailer Williams-Sonoma and Pyrex kitchenware maker Instant Brands, and said it obtained $15.8 million of judgments in 11 "Made in USA" enforcement actions between 2021 and 2024.
Android Authority
a day ago
- Android Authority
Last call: Fortnite players only have two days left to claim their settlement payout
Gary Sims / Android Authority TL;DR Fortnite players who were charged for unwanted purchases can submit a claim to receive compensation stemming from the FTC's settlement with Epic Games. Eligible claimants only have until July 9 to apply. Refunds are expected to arrive in 2026 after the agency has reviewed and validated all claims. If you're a Fortnite player, you might be entitled to some money. But you'll have to act quickly, as those who are eligible only have two days left to submit a claim. You may remember that Fortnite creator Epic Games was previously accused of using dark patterns to trick players into making unwanted purchases. The company was also accused of allowing children to make unauthorized payments without parental approval. In 2023, the North Carolina-based developer and publisher settled with the FTC, agreeing to pay $245 million to affected consumers. Late last month, the FTC announced it reopened the process to submit a claim for compensation. However, the deadline for submission is fast approaching, with the end date scheduled for July 9. According to the FTC's website, you're considered to be eligible if one of these three statements applies to you: You were charged in-game currency for items you didn't want between January 2017 and September 2022. Your child made charges to your credit card without your knowledge between January 2017 and November 2018. Your account was locked between January 2017 and September 2022 after you complained to your credit card company about wrongful charges. If you're eligible, you can submit your claim through the FTC's portal. Keep in mind that you'll need to be at least 18 years old to submit a claim. A parent or guardian can complete the claim form for you if you are under the age of 18. Don't expect to get your money right away if you are verified. The agency says payments are expected to arrive in 2026 after all claims have been reviewed and validated. When that refund arrives, it will come in the form of a check or PayPal payment. You'll need to cash that check within 90 days, while PayPal payments will need to be redeemed within 30 days. Got a tip? Talk to us! Email our staff at Email our staff at news@ . You can stay anonymous or get credit for the info, it's your choice.
Yahoo
a day ago
- Yahoo
How to spot auto loan fraud: 5 scams to watch out for
Scammers prey on innocent consumers who are in the market for a reliable, affordable used vehicle. After you purchase a car, you may become a target for car loan scams by the dealership or outside scammers. Always thoroughly read loan paperwork before signing off. Watch for fees and add-ons. If you're targeted, you can report the fraud, but reclaiming your money isn't guaranteed. Scammers often target car owners who need to catch up on their payments and want to avoid having their cars repossessed. Other types of scams happen at the dealership or when buying used through a private seller. Either way, these schemes can be costly, or even worse, leave you empty-handed. With a previous FTC rule designed to help consumers currently paused, it's worth familiarizing yourself with the red flags to minimize the chances of falling victim to a scam. With a yo-yo financing scam, a dealer will lead you to believe the financing is final. It may accept your trade-in and down payment before allowing you to leave the lot. Days or even weeks later, the dealer will call and say the financing fell through. To keep the vehicle, you must come back and sign a new contract, typically with less favorable terms. Sometimes, the dealership has already sold the traded-in vehicle, leaving you to choose between higher rates or no car. These scams often target consumers with fewer financing options because they have bad credit or no credit profile. Yo-yo financing is illegal in every state, says Paul D. Metrey, executive vice president for public policy with the National Automobile Dealers Association. But tactics like conditional sales and spot deliveries, in which you can take your car home before the loan is finalized, are perfectly legal. However, the CARS Rule includes language to protect consumers from yo-yo financing traps by forbidding dealers from misrepresenting transactions as final. How to avoid To avoid a yo-yo scam, you should get an auto loan before visiting the dealership. You may receive a better interest rate through a bank, credit union or online lender. Plus, walking in with financing already locked down gives you additional negotiation power. Car loan modification scams promise to lower your auto loan payments for a steep fee. Scammers typically ask to be paid upfront or request unusual forms of payment, such as a money transfer or gift card. Unlike a legitimate lender, these scammers often do not check your credit score. They may also pressure you to sign a contract. 'The scams are similar to mortgage loan modification scams, with the scammers telling customers that they could stop their car from being repossessed and that they could lower their payments,' says Gregory Ashe, senior staff attorney with the Bureau of Consumer Protection at the Federal Trade Commission. With a car loan modification scam, the scammer will 'negotiate' on your behalf to lower your rate — and may ask you to make car payments to them rather than your lender. However, you should only negotiate terms directly with your lender's customer service team. According to Ashe, a lender may extend your loan term or defer some payments, but they are unlikely to negotiate interest rates. Check out our best auto refinance loans if you're interested in changing your car loan interest rate. How to avoid The FTC recommends contacting your lender directly to discuss car loan modification options as soon as you realize you will have trouble making your car payment. Ignore any too-good-to-be-true promises of lowered car payments from suspicious companies. Negative equity, also known as being upside-down on your auto loan, occurs when you owe more on your car than it is worth. The FTC has taken administrative action against multiple dealers for Truth in Lending Act violations regarding how those dealers handled negative equity. The dealers did not clearly explain to consumers that though they offered to 'pay off' the balance due on a trade-in, they actually took the negative equity and applied it to the borrower's new car loan balance. Some customers complained that they didn't know this until after signing their new auto financing paperwork. 'Consumers need to carefully read the paperwork before they sign it, because it doesn't matter what's said. It matters what's in writing,' Ashe says. 'If you don't understand something, then don't sign it.' How to avoid When you review your loan documents, check to make sure the price is what you agreed to pay. If there are additional costs, ask the finance manager at the dealership to explain them to you. Your trade-in should be treated as a separate transaction. You can choose to roll over negative equity into a new loan, but the dealer needs to clarify how that will affect your loan. Dealers may pressure you to purchase additional products and services when you buy a car. These might include: An extended warranty. Gap insurance. Rustproofing. Tire rotation and service contracts. While some of these items can be useful, many are not. The dealer's primary goal is to get you to spend more. You are under no obligation to agree to add-ons. If an option interests you, try to negotiate the price and remember, if it's added to the loan, you're paying interest on it. The new CARS Rule should make this process easier. Dealers will be required to get your 'express, informed consent' before any additional charges for products or services are added to your bill. However, dealers may try to buck this rule, so stay wary. How to avoid Research what is being offered and see what you can do yourself or get done at a shop elsewhere. You can often get the services or options at a lower price and better quality without wrapping them into your loan. There are several tell-tale signs of a used car scam. For starters, if the price point of a vehicle is far below the market value, what seems like the deal of a lifetime is likely a play to steal your hard-earned money. Here are some other red flags to look out for. Pushy sellers They rush you to make a decision, supposedly because the seller is on a tight timeline. Payment needs to be quick, and in the form of cash, a gift card or other untraceable method of transferring money. Once you do so, contact stops, and there's no way to recoup your funds. Vehicle identification number (VIN) issues Scammers often attempt to sell vehicles with outstanding liens, indicating a balance owed. They may also swap the VIN plate on the dashboard after a major incident, like a flood, theft or total loss, to mask the true history of the vehicle. Either way, you end up without an actual vehicle or a headache once you pay. Fake photos Duplicate listings are also common when dealing with scammers. A quick online search could easily reveal several listings of the car you're considering, each with varying price points and points of contact. How to avoid used car scams Perform a VIN search and an online reverse image search, then test drive the vehicle and confirm the seller's identity. Steer clear if the seller is in a rush and claims they plan to relocate soon, requests upfront payment or demands payment quickly. When buying a car, review your loan contract and ask the sales representative to clarify any questions you may have. But if you feel like you're being taken advantage of, you have options. Move on. There are plenty of dealers, both online and in-person, that offer similar vehicles. Back out if the dealer won't answer your question or pressures you to sign. File a grievance. You can also report a complaint to the Consumer Financial Protection Bureau (CFPB) if you believe the dealer is engaged in shady practices. If you've already made what you believe is a fraudulent purchase, the FTC outlines steps you can take depending on the information the scammer has. Be sure to: Report the incident. Use the guidance found on the FTC's website to report the fraud and determine your next steps from there. Seek legal counsel. After filing a report with the FTC, contact your state attorney general to notify them of the scam and learn more about your options. Unfortunately, it may be challenging to recover your money after paying for a loan modification. But you may have some recourse if you were the victim of a predatory dealership. When shopping for a car, ask clarifying questions and review every document you are asked to sign. The best defense against red flags is taking your business elsewhere. If you're having trouble paying your loan, the best thing to do is talk to your lender directly. Car loan modification scammers target vulnerable buyers who have poor credit or who are late on their payments. If it sounds too good to be true, then it probably is. Lenders will often be willing to work with you if you show that you're making an honest effort to continue making payments.
