According to new data from the Federal Trade Commission (FTC), fraud cost consumers and businesses almost $8.8 billion in 2022, up 30% over the year before.
The Consumer Sentinel Network Data Book reflects reports received through the Consumer Sentinel Network, a database of the information reported directly by consumers and from federal, state, and local law enforcement agencies, the Better Business Bureau, industry groups, and non-profit organizations. The 2022 numbers suggest some disturbing trends about what scammers are up to.
- Reported fraud losses are up. The Consumer Sentinel Network received 2.4 million fraud reports in 2022. But the almost $8.8 billion in total reported losses in 2022 surpasses the $6.1 billion figure from 2021.
- Imposter scams top the Fraudulent Five. The number of fraud reports received, #1 on the list is Imposter Scams, followed by #2 Online Shopping, #3 Prizes, Sweepstakes, and Lotteries, #4 Investments, and #5 Business and Job Opportunities.
- Losses to business imposters have skyrocketed. People reported losing $2.6 billion to imposters in 2022, an increase from $2.4 billion the year before. A notable trend relates to the rise of business imposters – scammers who falsely claim affiliations with well-known companies. In 2020, reported losses to business imposters were $196 million. That figure rose to $453 million last year and soared to $660 million in 2022.
- Scammers go social. Losses facilitated via social media platforms totaled $1.2 billion in 2022, although phone scams yielded the highest reported loss per person with a median of $1,400.
Why should businesses care about these stats?
Because the $8.8 billion pocketed by fraudsters means $8.8 billion less for consumers to spend on goods and services offered by honest businesses. In addition, the rise of business imposters should be particularly troubling since it could be your company's good name that scammers are stealing. And those dollar figures don't consider the incalculable losses in consumer confidence in the marketplace.
If you spot a scam or questionable business practice in 2023, report your experience at ReportFraud.ftc.gov.
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