Sources:As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public. (2024, February 9). Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-publicBBB Tip: 10 steps to avoid scams. (2024, June 21). Better Business Bureau. https://www.bbb.org/article/tips/8767-bbb-tips-10-steps-to-avoid-scamsThe Latest Scams You Need to Be Aware of in 2024, By DeNicola, L. (2023, December 30). https://www.experian.com/blogs/ask-experian/the-latest-scams-you-need-to-aware-of/Empowering Fraud Fighters. (n.d.). Financial Industry Regulatory Authority Foundation. https://www.finrafoundation.org/networks-we-strengthen/fighting-fraudInternet Crime Report 2023 by The Federal Bureau of Investigations. (2024). In Internet Crime Complaint Center. https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf National Center for Victims of Crime, Financial Crime Resource Center: https://victimsofcrime.org/financial-crime-resource-center/ Financial Crimes Enforcement Network, FinCEN Resource Center: https://www.fincen.gov/fincen-resource-centerFletcher, E. (2023, October 6). Social Media. Federal Trade Commission. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/10/social-media-golden-goose-scammersIdentity Fraud Cost Americans $43 Billion in 2023. (2024, April 10). American Association of Retired People. https://www.aarp.org/money/scams-fraud/info-2024/identity-fraud-report.htmlIs Fraud Always a Federal Crime? (2024, March 20). Stechschulte Nell. https://www.tpatrialattorneys.com/fraud-always-federal-crime/Criminal Consumer Fraud, Must the Goals of Deterrence and Compensation Be Mutually Exclusive? By The American Journal of Criminal Law, Kirschner, N. M. (1979). https://www.ojp.gov/ncjrs/virtual-library/abstracts/criminal-consumer-fraud-must-goals-deterrence-and-compensation-beRecovering From Online Fraud. National Crime Victim Law Institute: https://ncvli.org/recovering-from-financial-fraud-and-identity-theft-services-for-victims/#:~:text=%E2%80%93Identity%20Theft%20Resource%20Center%20What Are Some Common Types of Scams? (2024, March 13). Consumer Financial Protection Bureau. https://www.consumerfinance.gov/ask-cfpb/what-are-some-common-types-of-scams-en-2092/Resources:FBI Internet Complaint Center: https://www.ic3.gov/FBI Tip Center: http://tips.fbi.govBBB Scam Risk Calculator: https://www.bbb.org/all/scam-prevention/risk-calculatorCybercrime Support Network: https://fightcybercrime.org/Identity Theft Resource Center: https://www.idtheftcenter.org/Financial Industry Regulatory Authority: https://www.finra.org/Report Fraud to the Federal Trade Commission: https://reportfraud.ftc.gov/For additional resources and a list of related non-profit organizations, please visit http://www.somethingwaswrong.com/resourcesFollow Something Was Wrong:Website: somethingwaswrong.com IG: instagram.com/somethingwaswrongpodcastTikTok: tiktok.com/@somethingwaswrongpodcast Follow Tiffany Reese:Website: tiffanyreese.me IG: http://www.instagram.com/lookieboo The Data Points cover art is by the Amazing Sara Stewart. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Full Episode
Wondery Plus subscribers can listen to Something Was Wrong early and ad free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. Although cons, schemes, and fraud can make for intriguing storylines, the true impact of fraud has pervasive detrimental effects on its victims that are not often highlighted in society or media.
Relatedly, the FBI website enlists 18 different common types of fraud and scams on their website. including but not limited to identity theft, business and investment fraud, charity and disaster fraud, property scams, mortgage fraud, extortion, sextortion, adoption fraud, cryptocurrency investment fraud, elder fraud, election crimes, healthcare fraud, mail fraud, holiday and romance scams.
In 2023, the Federal Trade Commission data showed adult consumers reported losing more than $10 billion to fraud, which was the first time that reported fraud-related losses had reached an amount that high. This number is a 14% increase over reported losses in 2022.
Considering these alarming statistics and the increasing use of artificial intelligence to victimize many people at once, the Broken Cycle Media team believes it's essential to highlight the most common cons, schemes, and fraud.
It's important to note that the FTC highlights that anyone can become a victim of fraud, although victims in different age ranges do largely fall victim to different types of fraud. The FTC points out that in 2021, people ages 18 to 59 were 34% more likely than older adults ages 60 and over to report losing money to fraud, with some types of fraud being more common than others.
Younger adults were more likely to fall prey to online shopping scams, which often started with an ad on social media, far more often than any other fraud type. Younger adults also reported losing money on job scams at more than five times the rate of older adults. And with the invention of the internet, the accessibility and ease of committing fraud has increased immensely.
The Federal Trade Commission reports that of all reported fraud from 21 to 23, victims who made initial contact with scammers through the internet were scammed out of a total of nearly $6 billion.
One in four people who reported losing money to fraud from 21 to 23 said it started on social media, and those victims reported losses that reached a whopping $2.7 billion, which is significantly higher than victims that were frauded through other contact methods.
Social media is also being used to increasingly target younger victims, and is the method of communication in 47% of fraud reported by 18-19 year olds. Still, most fraud is actually not reported, which means that these numbers are actually just a fraction of the harm that common cons, schemes, and frauds cause in the internet and social media age.
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