According to a new report from the Consumer Federation of America (CFA), online scams drained nearly $150 billion from Americans last year, a figure seven times higher than what was reported to the FBI. The alarming estimate comes from a study highlighting the rapid growth of digital fraud and the underreporting by victims.
The CFA calculated total losses at $148.2 billion by applying a federal survey finding that only about 14% of financial fraud victims report the crime to law enforcement. Investment scams, especially those involving cryptocurrency, top the list: over half of losses reported to the FBI involved crypto, with victims losing nearly $11.4 billion, up 22% from the previous year. The CFA estimates the true cost of crypto scams could reach $80.7 billion.
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Investment fraud leads the way as AI fuels scam expansion
Investment fraud was the most costly category, with over $8.6 billion in reported losses. Business email compromise and tech support scams followed, with roughly $3 billion and $2.1 billion respectively. Artificial intelligence is a major driver: scammers use deepfake voice and video calls to impersonate family members in emergencies and easily create fake documents. The top three platforms used by scammers all belong to Meta: Facebook (57%), Instagram (22%), and WhatsApp (8%).
To protect themselves, experts recommend measures like agreeing on code words with family members, decided in person and never via electronic messaging. For more on cybersecurity best practices, check out our article on increasing Google reviews for your restaurant which also covers trust-building strategies. The role of AI in fraud is also discussed in our piece on the unsexy AI that Europe needs.
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Authorities urge victims to report to the FBI Internet Crime Complaint Center, but low reporting rates keep the true scale hidden. Awareness and prevention remain the best defense against this exponential crime wave.
