The U.S. Federal Trade Commission (FTC) reported that total fraud losses reached an all-time high of $15.9 billion last year—an approximately 27% year-over-year increase—and found that some victims lost more than $1 million to scams.
An FTC report noted that imposter scams remained the most commonly reported type of fraud, continuing a five-year trend. While bad actors impersonate a wide range of major brands, the FTC found that the highest reported losses stemmed from criminals posing as representatives of financial institutions.
Bank impostor scams are not new, but the tactics have evolved. After contacting a target with an urgent message, such as a supposed issue with their account, criminals often transfer victims to another criminal posing as an FTC official or FBI agent.
This phony agent warns victims that they must move their money immediately to protect it, and many are falling for the scheme. The FTC noted that some victims transferred the entirety of their bank accounts, Roth IRAs, or 401(k) retirement savings.
Beyond Financial Gain
Even as losses have skyrocketed, around 80% of the roughly one million consumers who reported an imposter scam did not lose money, per the FTC. However, that doesn’t necessarily mean no fraud occurred.
Data from Javelin Strategy & Research found that a large number of scam targets avoid an immediate financial loss but are still victimized in other ways.
Many of these victims share personal information, which can be just as valuable to cybercriminals. That data can be reused in future scams or leveraged to create synthetic identities—a growing threat to organizations and individuals.
Sounding the Clarion Call
The growing impact of fraud is prompting regulators and organizations to intensify their warnings to businesses and consumers. For example, the FBI echoed the FTC’s findings that both fraud volume and financial losses are rising and urged consumers to “take a beat” during suspicious interactions to create distance from high-pressure situations.
The FTC offered similar guidance while also underscored the importance of timely and accurate fraud reporting—something many victims are reluctant to do.
As Amy Nofziger, Senior Director of Victim Support for the AARP Fraud Watch Network, told CNBC: “Recognize that scams are targeting all of us. It has nothing to do with your education or your intelligence level. It really has to do with your emotions at the time the scam is targeting you.”