Americans Scammed $12.5 Billion in One Year – Overview of Scam Tactics

Despite various institutions continuously educating consumers on fraud prevention awareness, scammers are becoming increasingly sophisticated with their tactics. The latest set of data shows that in daily life, many consumers may suffer substantial financial losses due to slight carelessness.

According to the latest report from the Federal Trade Commission (FTC) in the United States, in 2024, approximately 2.6 million Americans reported falling for scams, with cumulative losses totaling up to $12.5 billion, a 25% increase from the previous year.

It is worth noting that the number of reported victims remains similar to 2023, but the cases involving financial losses and the amount of losses have significantly risen. So what are some of the tactics used by scammers?

The report reveals that investment scams have caused the highest financial losses over the past year, totaling $5.7 billion, a 24% surge compared to 2023. Among them, the “pig killing scheme” is a common type of investment fraud, where scammers use online dating to lure victims into “investing.”

The scammer’s pattern involves initially using dating applications or other social software to identify targets; then, they build a relationship with the victim, gradually developing friendships, romantic relationships, or business partnerships. Once trust is established, scammers will disclose to victims how to earn money through investing in cryptocurrencies, luring them into investment schemes.

Due to the unique nature of cryptocurrency transactions, once victims transfer money, it can be challenging to recover.

In recent cases, one victim who initially received a call from a stranger pretending it was a “misdialed” number ended up becoming “friends,” ultimately misled into believing in an “investment” opportunity, resulting in a loss of $500,000 with no return.

Other victims have encountered strangers initiating conversation on social media platforms such as Facebook, Line, Telegram, WhatsApp, or seen advertisements about investment seminars on social media. Scammers make promises of “high returns in a short period” and claim to offer returns higher than the U.S. stock market, leading many victims to fall prey.

The FBI has repeatedly warned the public not to succumb to greed or wishful thinking in order to avoid becoming victims of such “cryptocurrency pig killing schemes,” stating that “when something sounds too good to be true, it may be a scam.”

Apart from investment fraud, impersonation scams closely follow, resulting in $2.95 billion in losses. Among them, scams impersonating government departments have been rampant, causing $789 million in losses in 2024.

In many such scams, scammers impersonate government employees to threaten victims into making payments, or else face arrest or prosecution.

For example, scammers posing as police officers threaten victims for missing jury duty summons and accruing legal fees, demanding immediate Bitcoin payments to avoid legal consequences.

Some victims receive calls from strangers claiming to be detectives from the police station, holding arrest warrants against them for not appearing in court for jury duty, coercing them to pay to avoid arrest.

The Los Angeles police have repeatedly advised the public that upon receiving calls from unknown numbers, inquire about the caller’s information and then hang up, subsequently verifying the information through independent sources by contacting relevant institutions. Do not provide any personal information over the phone, do not confirm the caller’s claims through the provided contact information, do not feel pressured by threats, immediately hang up the call and verify the information, do not wire money to anyone unfamiliar or untrustworthy, or provide personal bank account and credit card information.

In 2024, numerous consumers also reported falling victim to online shopping scams and job agency scams.

The Federal Trade Commission found that losses from job agency scams doubled over the past four years, with losses jumping from approximately $90 million to $500 million.

The report highlights that across all scams, scammers primarily utilize email, phone calls, and text messages to lure victims.