FBI Reports Online Scams Reached $16.6 Billion in 2023, Up 33%

Scammers in the United States inflicted a staggering $16.6 billion in losses in 2024, marking a significant 33% increase from the previous year, as reported by the FBI. The FBI’s Internet Crime Complaint Center revealed that over a quarter million complaints were filed, with victims averaging losses exceeding $19,000 each. Cybercrime has become increasingly sophisticated, according to officials, with ransomware constituting a major threat to vital infrastructures across the country.

Overview of Digital Scams in 2024

In its annual report, the FBI’s Internet Crime Complaint Center revealed that scammers in the United States stole a record $16.6 billion in 2024, representing a 33% increase from the $12.5 billion reported in 2023. This alarming trend signifies that cybercrime is becoming more rampant, affecting a growing number of individuals and businesses alike. The report noted that over 250,000 complaints were documented, with an average loss exceeding $19,000 per reported case. Officials highlighted the importance of recognizing this increasing threat. “As nearly all aspects of our lives have become digitally connected, the attack surface for cyber actors has grown exponentially,” emphasized B. Chad Yarbrough, the FBI’s Operations Director for Criminal and Cyber.

Personal Stories: Real Victims of Fraud

One of the most harrowing accounts came from a victim identified as Rich Brune, who fell victim to a scam that deprived him of $1.7 million in merely three months. During a routine day working on his computer, a notification appeared on his screen. It falsely claimed that his personal information had been compromised and that he was under investigation for “unlawful computer uploads.” The message instructed him to contact a specific number and advised him to lock his computer without shutting it off. Believing he was securing himself, Brune unwittingly transferred money and provided access to his bank account to the swindlers. Regrettably, he was never able to recover any of the funds he lost.

Demographic Breakdown of Scam Victims

The data reported in 2024 revealed alarming trends concerning the demographics of victims. Although not all complaints included age details, of those that did, individuals aged over 60 reported the highest volume of cases, exceeding 147,000 complaints. This age group also accounted for an astonishing $4.8 billion in losses, representing over 25% of the total reported losses. Moreover, the average financial loss for older Americans reached approximately $83,000, far surpassing the overall average loss in 2024. In stark contrast, individuals under 20 years old recorded minimal losses, totaling about $22.5 million across approximately 18,000 complaints.

Most Common Types of Scams

Investment scams topped the list, generating over $6.5 billion in losses according to the FBI. Other significant categories included business email compromise scams, which accounted for over $2.7 billion, while tech support scams culminated in additional losses exceeding $1.4 billion. Personal data breaches also played a prominent role, contributing to losses upwards of $1.4 billion. Furthermore, romance scams, a widespread fraudulent scheme, landed sixth on the list, with victims reporting more than $672 million in losses. A striking 83% of these reported losses involved internet or technology use, showcasing how adept cybercriminals have become in leveraging digital platforms for deceit.

Trends in Financial Losses

The scamming strategies also reflected a shift in trends regarding how funds were lost. The FBI reported that the majority of losses involved cryptocurrency transactions, marking a significant shift in the financial landscape. This was followed by wire transfers and the use of credit or debit cards. B. Chad Yarbrough elucidated on this emerging pattern: “Cryptocurrency has become an enticing means to cheat investors, launder proceeds, and engage in other illicit schemes.” California residents were the most affected, reporting the highest losses, while Vermont registered the fewest reported cases. Additionally, the Northern Mariana Islands, a U.S. territory, also noted minimal losses during the year.

Summary

The staggering rise in financial losses due to scams in 2024 underlines the urgent need for awareness and preventive measures against fraud. With older adults bearing the brunt of these deceitful schemes, it’s essential for families and communities to foster discussions about online safety and to encourage individuals to report suspicious activities. As the digital landscape continues to evolve, stakeholders must collaborate to implement protective frameworks to minimize the risk of becoming victims of cybercrime.

Frequently Asked Questions

Question: What factors contributed to the increase in scams in 2024?

The increase in scams can be attributed to the growing digital connectivity in our lives, which has expanded the potential targets for cybercriminals. Additionally, the rise of sophisticated tactics and the use of technology in scams have made it easier for criminals to deceive unsuspecting victims.

Question: How can individuals protect themselves from falling victim to scams?

Individuals can protect themselves by staying informed about the latest scams, using strong and unique passwords, enabling two-factor authentication, and being cautious when sharing personal information online. It is also important to verify the legitimacy of any financial requests or offers before responding.

Question: What should someone do if they believe they have been scammed?

If someone believes they have been scammed, they should report the incident to local law enforcement, the FBI’s Internet Crime Complaint Center, and their financial institutions. Prompt action can sometimes help recover funds or prevent further losses.