New FTC Report Reveals Staggering $12.5B Fraud Losses in 2024

Americans lost a staggering $12.5 billion to scammers in 2024, with investment frauds and government imposters draining wallets at an alarming rate as traditional fraud tactics evolve into more sophisticated schemes.

Key Insights

Consumer fraud losses jumped from $10 billion in 2023 to $12.5 billion in 2024, while the number of reports remained steady at 2.6 million.
Investment scams caused the highest financial damage at $5.7 billion, while imposter scams were the most frequently reported.
Government imposter fraud losses skyrocketed from $171 million to $789 million in just one year.
The percentage of people who lost money to scams increased substantially from 27% to 38%.
Bank transfers and cryptocurrency payments resulted in greater financial losses than all other payment methods combined.

Rising Fraud Losses Despite Stable Report Numbers

The Federal Trade Commission’s latest data reveals Americans lost $12.5 billion to fraud in 2024, representing a concerning $2.5 billion increase from 2023’s $10 billion total. Despite this substantial rise in financial damage, the actual number of fraud reports remained relatively stable at approximately 2.6 million. This indicates scammers are becoming more efficient at extracting larger sums from their victims rather than simply increasing the volume of their attempts.

What makes this trend particularly troubling is that the percentage of people who reported losing money after encountering a scam jumped dramatically from 27% in 2023 to 38% in 2024. This suggests fraudsters are refining their techniques to become more convincing and effective at separating Americans from their hard-earned money.

New FTC data show a big jump in reported losses to fraud to $12.5 billion in 2024. Consumers reported losing the most to investment scams at $5.7 billion: https://t.co/h6bVFglPXb /1

— FTC (@FTC) March 10, 2025

Investment Scams and Imposters Lead the Pack

Investment scams continued to cause the most financial damage, with losses climbing to $5.7 billion from $4.6 billion in 2023. These sophisticated schemes often promise extraordinary returns with minimal risk, targeting individuals’ retirement savings and investment portfolios. The significant financial impact of these scams reflects their ability to extract large sums from each victim, often by building trust over time.

While investment frauds extracted the most money, imposter scams were the “most commonly reported scam category” according to the FTC. These deceptions involve criminals pretending to be government officials, tech support representatives, or other trusted entities to trick victims. Perhaps most alarming is the dramatic rise in government imposter fraud, which saw losses increase from $171 million in 2023 to $789 million in 2024 – a 361% increase in just one year.

Online shopping fraud emerged as the second most reported category, reflecting Americans’ growing vulnerability in purchasing through digital channels. This trend highlights the need for increased vigilance when conducting e-commerce transactions, particularly on unfamiliar websites or social media marketplaces.

Digital Payment Methods Fuel Record Losses

The FTC report revealed that scams involving bank transfers and cryptocurrency payments resulted in greater financial losses than all other payment methods combined. This finding underscores the growing risk associated with these payment methods, which often offer less consumer protection than traditional credit cards. Once money leaves an account through these channels, recovery becomes extremely difficult if not impossible.

Email remained the most common contact method used by scammers to reach potential victims, though phone scams showed a concerning increase in effectiveness with median losses reaching $1,500 per victim. Social media platforms also served as fertile ground for fraudsters, with 70% of victims reporting losses through these channels totaling $1.9 billion.

Demographic Differences in Fraud Vulnerability

The data revealed interesting patterns across age groups. Younger Americans (aged 20-29) reported falling victim to scams more frequently than older adults (70+), suggesting greater exposure to fraudulent schemes among younger demographics. However, when older Americans did fall victim, they typically lost substantially more money per incident, highlighting how scammers often target seniors for higher-value schemes.

Employment scams showed particular growth, with reports tripling from 2020 to 2024 and losses rising alarmingly from $90 million to $501 million during that period. Similarly, business and job opportunity scams extracted $750.6 million from victims, increasing nearly $250 million from the previous year.

The FTC continues to track these evolving trends through its Consumer Sentinel Network, which collects reports from consumers and various agencies. Americans are encouraged to report scams promptly and maintain vigilance against increasingly sophisticated fraud attempts targeting their financial resources.