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FTC says Americans lost $12.5B to scams last year — social media, AI, and cryptodidn’t help
In 2024, Americans reported $12.5 billion lost to scams, up from $2.5 billion in 2023, according to the FTC. Social media and impostor scams were the most common methods of deception, especially affecting millennials. Traditional methods regained prominence, with substantial losses in cryptocurrency too. The rise of AI technology raises concerns about increasingly sophisticated scams in the future.
Key points
- Americans lost $12.5 billion to scams in 2024, up from $2.5 billion in 2023.
- 2.6 million fraud reports were submitted in 2024.
- Social media was the primary method for scam connections.
- Impostor scams, where scammers pose as trusted figures, were the most prevalent.
- Millennials (age 20-29) reported losing money more frequently than those over 70.
- Job and business opportunity scams grew significantly, reporting $501 million in losses.
- Traditional bank transfers resulted in roughly $2 billion lost to scams.
- Cryptocurrency scams accounted for $1.4 billion in losses.
Why it matters
- The increase in scam reports highlights the growing problem of online fraud, paralleling trends of digital transformation in society.
- The changing nature of scams and the rise of AI deepfake technology signal evolving risks and require adaptation in consumer awareness and protective measures.
- The reality of scams affecting younger demographics reflects a shift in digital literacy and vulnerability across age groups, similar to trends observed in evolving cyber threats.
The FTC's report emphasizes the urgent need for public awareness and protective measures against scams, especially as technology like AI evolves, making scams more sophisticated and challenging to detect.