The 8 types of scams that cost victims the most money every year
Americans reported more than $10 billion in fraud losses in 2023, according to the Federal Trade Commission. The biggest losses came from a relatively short list of scam types tracked in the FTC’s Consumer Sentinel Network Data Book, released on Feb. 8, 2024. Here is a simple breakdown of the eight categories that cost victims the most money.
Investment scams led by a wide margin
Investment scams caused the highest reported losses in 2023 at about $4.6 billion, according to the FTC. The agency said these cases often involved fake crypto investments, trading platforms, or promises of unusually high returns.
The median loss in reported investment fraud was far higher than in most other categories, the FTC said. Federal officials have repeatedly stated that scammers often build trust over weeks before asking for larger transfers.
Imposter scams stayed near the top
Imposter scams generated about $2.7 billion in reported losses in 2023, per the FTC. These cases include people pretending to be government agencies, businesses, family members, or technical support workers.
The FTC said scammers frequently demanded payment through wire transfers, gift cards, or cryptocurrency. Those payment methods are harder to reverse, which helps explain why losses in this category remained so high.
Online shopping scams kept draining wallets
Online shopping and negative review scams led to roughly $392 million in reported losses in 2023, according to FTC data. Many reports involved goods that never arrived or sellers who disappeared after payment.
The FTC has said online purchase fraud often rises during heavy retail periods, including November and December. Reported losses were smaller than investment losses, but the number of complaints remained substantial nationwide.
Job scams hit people looking for work
Job and employment scams accounted for about $367 million in losses in 2023, the FTC said. These schemes often used fake recruiters, counterfeit checks, and bogus remote-work offers posted on real job platforms.
The FTC said fraudsters commonly asked applicants to deposit checks and send money back for supposed equipment costs. Victims often discovered the checks were fake only after their bank reversed the deposit.
Business and government impersonation remained costly
Scams involving business and government impersonation were a major part of the broader imposter category in 2023. The FTC said people reported significant losses after callers posed as Social Security staff, IRS agents, or well-known companies.
In many cases, victims were told there was a legal problem, billing error, or account breach that required immediate payment. That urgency is a common feature cited by the FTC in enforcement updates.
Romance scams still produced steep losses
Romance scams caused about $1.14 billion in reported losses in 2023, according to FTC figures. These cases typically started on social media, dating apps, or messaging services before shifting into requests for money.
The FTC said many victims reported repeated payments over time, not just one transfer. That pattern helps explain why total losses stayed high even when the overall number of reports was lower than some other categories.
Tech support scams kept targeting older adults
Tech support scams produced major losses in 2023, especially among older adults, according to FTC reporting. Fraudsters often contacted people with fake virus alerts or pop-up warnings that directed them to call a bogus support line.
The FTC has said adults age 60 and older often report higher median losses in fraud categories tied to account access. In many cases, scammers persuaded victims to grant remote access to devices or bank accounts.
Prize, sweepstakes, and lottery scams rounded out the list
Prize, sweepstakes, and lottery scams remained one of the costliest fraud types reported to the FTC in 2023. Victims were often told they had won money but first needed to pay fees, taxes, or processing charges.
For consumers, the main takeaway is that the most expensive scams usually involve urgent payment demands, fake identities, or investment promises, according to the FTC’s 2024 data book. Federal agencies said fraud losses remain underreported, meaning the true toll is likely higher.
