Scammers have continued to evolve their tactics, and 2022 saw a rise in the total amount lost by consumers and small businesses. The Federal Trade Commission (FTC) partnered with Ethnic Media Services to reveal the top five scams of 2022 and their economic impact, as well as how to spot and protect against them.
According to the FTC, while there was a decrease in the number of fraud reports received in 2022, the total amount lost by consumers and small businesses rose to $8.8 billion, the most ever reported. The top two frauds were imposter fraud and online shopping scams. Consumers reported losing $660 million to business imposters compared to $450 million the year before.
Investor fraud was the most lucrative for scammers, with consumers reporting a loss of almost $3.8 billion, with the majority in cryptocurrency scams. Scammers often entice consumers to invest in cryptocurrency through social media, presenting fake websites that show the consumer’s money growing. Social media was the contact method that had the highest aggregated dollar loss, with $1.2 billion.
The FTC experts also highlighted that scammers are targeting ethnic communities and speaking their language. For example, the Latino community filed a higher percentage of reports relating to problems with banks and lenders, related to debt collection, auto issues, and also business opportunities. Scammers also targeted Latinos with bogus business opportunities and work-at-home schemes. In contrast, the black community reported the largest number of reports about payday loan applications and student debt relief programs.
To help people spot and avoid scams, the FTC provides information in a dozen languages, including Amharic, Arabic, Chinese (both simplified and traditional), French, Hmong, Korean, Russian, Somali, Tagalog, Vietnamese, and Ukrainian. The FTC’s downloadable publication, Spotting, Avoiding and Reporting Scams: A Fraud Handbook for recent refugees and immigrants, helps people learn to spot some of the scams related to looking for a job, going through the immigration process, or just trying to figure out how things work in the US. There are also graphics in each language at the bottom of each page to share on social media, helping people in various communities know how to spot, avoid, and report fraud.
In conclusion, while the number of fraud reports decreased in 2022, scammers continue to evolve their tactics, with investor fraud and cryptocurrency scams being the most lucrative. The FTC recommends being aware of scams and provides resources in multiple languages to help people spot, avoid, and report fraud.