Data Spotlight

Investing in cryptocurrency means taking on risks, but getting scammed shouldn’t be one of them. Reports to the FTC’s Consumer Sentinel¹ suggest scammers are cashing in on the buzz around cryptocurrency and luring people into bogus investment opportunities in record numbers. Since October 2020, reports have skyrocketed, with nearly 7,000 people reporting losses of more than $80 million on these scams.² Their reported median loss? $1,900.

Gift cards make great holiday gifts. But reports to FTC show that scammers like getting them, too. Scammers don’t ask nicely, though. They use trickery to insist on gift cards, and they ask for specific brands. Scammers prefer gift cards because they can get quick cash while staying anonymous. In fact, giving a scammer the PIN numbers off the back of a gift card is the number one way people report losing money on many of the top frauds reported to the FTC.

Social media can be a great way to connect with friends while the pandemic has you keeping your distance. But reports to FTC’s Consumer Sentinel Network suggest that that social media websites and apps have become popular hangouts for scammers, too. Reports that people lost money to scams that started on social media¹ more than tripled in the past year, with a sharp increase in the second quarter of 2020.

Our men and women in uniform take on unique hardships when they choose to serve. Identity theft shouldn’t be one of them. But the FTC’s Consumer Sentinel Network database shows that active duty servicemembers file reports about many forms of identity theft – and related problems with debt collection and credit reporting – at much higher rates than non-military consumers.

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.

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.

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.