People sometimes think scams mostly affect older adults, but reports to Consumer Sentinel tell a different story. People in their 20s and 30s, a cohort that roughly tracks the so-called Millennial generation, are 25% more likely to report losing money to fraud than people 40 and over generally, and much more likely to report a loss on certain types of fraud.
Pretending to be someone people trust is what scammers do. They may claim to be a well-known company or a beloved family member, but data from the FTC’s Consumer Sentinel Network suggest that pretending to be the government may be scammers’ favorite ruse. Since 2014, the FTC has gotten nearly 1.3 million reports about government imposters. That’s far more than any other type of fraud reported in the same timeframe. This spring, monthly reports of government imposter scams reached the highest levels we have on record.1
Claiming to be a government authority is a tried and true way that scammers trick people into sending money. Among the most common government imposters have been scammers pretending to be the IRS – until now. In the past few months, the FTC’s Consumer Sentinel Network database has seen Social Security Administration (SSA) imposter reports skyrocket while reports of IRS imposters have declined sharply. In the shady world of government imposters, the SSA scam may be the new IRS scam.
If the mere thought of your computer being hacked frightens you, you’re not alone. And tech support scammers know how to exploit that fear to their own advantage. They work to scare you into believing your computer is compromised and then offer to “fix” the problem – for a fee. The FTC’s Consumer Sentinel Network got nearly 143,000 reports about tech support scams in 2018.1
People looking for romance are hoping to be swept off their feet, not caught up in a scam. But tens of thousands of reports in Consumer Sentinel show that a scam is what many people find. In 2018, Sentinel had more than 21,000 reports about romance scams, and people reported losing a total of $143 million – that’s more than any other consumer fraud type identified in Sentinel.1 These reports are rising steadily. In 2015, by comparison, people filed 8,500 Sentinel reports with dollar losses of $33 million.
In 2018, the Consumer Sentinel Network has seen a striking increase in the median dollar amount that people 70 and over are saying they lost to fraud. Digging into the data, we found some common stories with an unusual twist: people 70 and older report mailing huge amounts of cash to people who pretended to be their grandchildren.