Loses From Fraud Reached $10 Billion In 2023, Report Reveals
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Citizens of the United States of America lost more than $10 billion to imposters in 2023. The Federal Trade Commission revealed that almost half of the scammers used investment schemes as a means of fraud. This is according to the Federal Trade Commission’s recent data.
Last year, fraudsters stole over $4.6 billion from customers who trusted and ventured into their fake investment schemes. This record shows a 21% increase in frauds from 2022. Imposter fraud is the second highest-fraud category with $2.7 billion lost and also the most reported. Other types of fraud include fake prize scams, e-commerce fraud, business scams, and job opportunity scams.
Financial Fraud Has Become More Complex In This Digital Era
The Federal Trade Commission revealed that 2.6 million consumers reported cases of fraud last year. This shows the high level of losses per incident.
The commission claims that many fraudsters use email as their preferred tool in 2023. Previously, text messages were the most used method of committing fraud. Phone calls were utilized by scammers for a very long time to contact their victims.
Bank payments and transfers accounted for $1.8bn lost which is the highest in 2023. The second highest was crypto at $1.4bn followed by wire transfers at $343.7m.
Fraud has been a major issue for over twenty centuries. The universe continues to struggle with the devastating effects of monetary crimes. Financial fraud in this digital era has become more complex than ever.
Scammers use phony text messages, emails, links, cloned websites, pop-up messages, and phone calls and make them look legitimate to defraud customers. Fake websites often resemble the firms they impersonate, deceiving customers into adding their bank cards and revealing personal details.
FTC’s Bureau of Consumer Protection Director, Samuel Levine, said the implementation of Digital tools has made it easier for fraudsters to target hard-working citizens in America. He also revealed that the effects are visible in our present day. He concluded that the Federal Trade Commission is dedicated to the fight against scams.
The FCC Aims To Stop The Use Of Ai-Generated Calls
The Federal Communications Commission (FCC) is set to reduce the influence of technology novelty on fraud. It has stopped the use of voice calls generated with AI. The goal is to protect US voters from disinformation and spamming endeavors with the November presidential approaching.
The Federal Trade Commission is a United States autonomous agency aiming to enforce civil antitrust laws and promote customer protection. It was established in Washington, DC.
