What the 2024 FTC Data Shows About Fraud Scams
I am a devoted fan of the television program American Greed. Many of its segments deal with instances of financial fraud and how it has upended the lives of so many. It also provides good advice on how to set up procedures to catch fraud so you don’t get duped. Recent statistics provided by the Federal Trade Commission (FTC) report an alarming trend. Financial fraud is growing like cancer, which needs to be excised.
Fraud continues to be a growing threat, with new data from the FTC revealing consumers lost over $12.5 billion to scams—an alarming 25% increase compared to the previous year. The report also highlights troubling scam trends, including the rise of bank transfer fraud, the prevalence of social media scams, and the staggering losses among younger and older adults alike.
Scams Hit a Record $12.5 Billion in Losses
The FTC’s annual Consumer Sentinel Network Data Book for 2024 shows that consumers reported losing an unprecedented $12.5 billion to fraud. This significant jump demonstrates how scams are becoming increasingly sophisticated and widespread. By understanding the trends and patterns in scams that are outlined in the report, you’ll be better equipped to be on the lookout, if someone tries to scam you.
Bank Transfers: the #1 Scam Loss
According to the FTC, people lost more money through bank transfers than any other payment method—totaling $2 billion in losses. These scams often involve fraudsters tricking victims into transferring money directly into their accounts, making it extremely difficult to recover.
Cryptocurrency scams were the second-highest category, with $1.4 billion reported in losses. If you use either payment method, always verify the recipient’s authenticity before completing a transaction, according to the FTC report.
Another type of bank fraud is that perpetrated by the bank itself.
Wells Fargo
The classic example of fraud by a bank is fraud against consumers by Wells Fargo just a few years ago. The Wells Fargo fraud, which involved employees opening millions of unauthorized accounts to meet aggressive sales goals, led to significant fines, customer harm, and reputational damage for Wells Fargo. Between 2011 and 2015, employees opened over 1.5 million checking and savings accounts and 565,000 credit cards without customer consent, a figure later revised to more than 2 million unauthorized accounts.
The fraud was driven by a “pressure-cooker” sales culture that forced employees to meet unrealistic sales targets. The bank was fined millions by regulators and eventually agreed to a $3 billion settlement with the Department of Justice in February 2020 to resolve criminal and civil liability.
Investment Scams Are Increasing
Investment scams accounted for $5.7 billion in losses in 2024 according to the report, a $1 billion increase from the previous year. Perhaps not surprisingly, 79% of victims who reported an investment-related scam said they lost money, with a median loss exceeding $9,000 per case. These frauds are often depicted on American Greed. The scams often promise unrealistically high returns on investments, particularly in cryptocurrency, real estate, and fake startups. Remain vigilant by researching thoroughly and steering clear of “too good to be true” offers.
The most well-known investment scam is a Ponzi scheme. A Ponzi scheme is an investment fraud that pays early investors with money from later investors, creating the illusion of high profits from a legitimate business. The scheme is unsustainable because it relies on a constant flow of new money, and it ultimately collapses when the operator can no longer recruit new investors to pay the existing ones. These schemes are named after Charles Ponzi, who defrauded many investors in the 1920s. Bernie Madoff is the king of Ponzi schemes. He was the admitted mastermind of the largest known Ponzi scheme in history, worth an estimated $65 billion.
Social media has become the most common form of investment scams, with 70% of people who were contacted through these platforms reporting financial losses. The total losses from scams initiated on social media hit a staggering $1.9 billion, according to the report.
Fraudsters frequently use fake profiles, phishing links, and posts promoting counterfeit goods or investment opportunities to trick naïve users. A word of advice is to be careful when you are engaging with unfamiliar accounts or messages on platforms like Facebook, Instagram, Snapchat and LinkedIn.
Job Fraud Increases Three-Fold in Frequency and Losses
Between 2020 and 2024, reports of job scams and fake employment agencies surged, with reported losses jumping from $90 million to $501 million. These scams disproportionately target individuals seeking remote jobs or flexible work arrangements, promising dream opportunities that come with a hefty price tag for training fees, background checks, or initial deposits.
5 Tips to Protect Yourself from Scams
The FTC provides useful advice on how to avoid fraud scams.
1. Verify before you transfer
Always confirm the identity of a recipient before sending money, especially through a bank transfer or cryptocurrency.
2. Be cautious on social media
Avoid clicking on unsolicited links or engaging with unfamiliar accounts that promote investment opportunities or offer prizes because it allows scammers to steal your information or money.
3. Research job offers
Verify the legitimacy of job postings and employment agencies. Avoid any opportunities that require upfront fees, and check if the company is registered and has a solid reputation.
4. Stay informed
Regularly review trustworthy resources like the FTC website or Webster First’s security & fraud prevention blogs to stay updated on the latest scam trends.
5. Report suspicious activity
If you encounter or fall victim to a scam, report it to the FTC at ReportFraud.ftc.gov. Your report can help authorities track scammers and prevent others from being targeted.
Why is Fraud Against Individuals on the Rise
I believe the increase in the amount and types of scams is occurring because of a general breakdown in ethics in society. All too often we hear about fraud committed by politicians, government officials. businesspeople, those in the entertainment and sports industries, and others.
As a society, Americans have lost their moral compass. The scammers fail to see the consequences of their actions until it’s too late and the damage has been done. They don’t consider how their actions affect others. So many of them engage in narcissistic behavior.
You can ward off these scams through knowledge about their existence, the signs of scamming to look out for, and education about online scams which may be the hardest to counteract because it utilizes technology. Also, always check out the FTC website for help in these matters and in identifying known scammers.
Blog posted by Steven Mintz. PhD, on November 24, 2025. Steve is a Professor Emeritus from Cal Poly San Luis Obispo. You can learn more about his activities on his website: www.stevenmintzethics.com.