Consumer Losses from Fraud Reach Record Level

By Nadia Ramlagan
Ohio News Connection

Nationwide, people’s losses from fraud in 2023 reached a record $10 billion, a 14% increase from 2022, according to the Federal Trade Commission.

Judy Dollison, president of the Better Business Bureau of Central Ohio, said consumer education and awareness of scams is an ongoing challenge. Scammers are constantly changing their tactics and using artificial intelligence and other technology to bait more people. She said scams are increasingly complex and overlapping, and often involve emotional and psychological manipulation.

“We’re seeing a crossover between romance scams and crypto scams,” she said, “because now, instead of the romance scammers just asking for money, they’re asking their victims to invest in crypto exchanges, which aren’t real.”

Dollison said 80% of people who’ve reported losing money to investment scams involving cryptocurrency lost on average more than $3,000. For adults age 18 to 44, employment scams are the top risk, with an average loss of about $2,000.

Fil de Banate, an FTC attorney, said Ohioans shelled out more than $154 million to scammers last year. Aside from software scams, he said, the second most reported scam in the state involves imposters.

“There are those scammers pretending to be the government,” he said. “There are scammers pretending to be a well-known business or a bank’s fraud department, or a family member who needs help, right – a family member who’s in distress.”

Common imposter cons include people pretending to be affiliated with government agencies such as the IRS or Social Security Administration, charity-related scams and tech-support scams.

Consumers who suspect they’ve been victims of fraud can file a report with the FTC online or by calling 877 382 4357.

This story was produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.

Pictured at top: The Federal Trade Commission says it received fraud reports from 2.6 million consumers last year, nearly the same amount as 2022. (Adobe Stock)

Published by The Business Journal, Youngstown, Ohio.