From CNBC:

Consumers lost a record $10 billion to fraud in 2023, and imposter scams were the most prevalent swindle, according to the Federal Trade Commission. Nearly 854,000 people filed complaints to the FTC about imposter scams in 2023, representing 33% of total consumer fraud reports. Consumers lost $2.7 billion to such scams in 2023, with an average loss of $800.

Imposter scams come in many forms, but share a basic premise: Criminals pretend to be someone you trust to persuade you to send them money or get information that can later be leveraged for money. Fraudsters, often part of sophisticated organized crime networks, may contact potential victims via various channels such as e-mail, phone call, text, mobile apps, social media, or traditional mail.

The internet has ‘really supercharged’ imposter scams, with government impersonators suggesting they work for agencies such as the Social Security Administration, IRS, Medicare, or the FTC. Other fraudsters might claim to be from a well-known company like Amazon or Apple, or from a utility company threatening to turn off service.

Older victims were less likely than younger ones to report losing money to all types of fraud, but their typical loss was higher. Those age 80 and older had a median loss of $1,450, while the typical loss didn’t exceed $500 for those younger than 70. The FBI reported last year that a subset of imposter scam — a type of tech-support fraud known as a “phantom hacker” scam — was on the rise nationally, “significantly impacting” older Americans.

Nascent and improving technology, such as artificial intelligence and voice cloning, has made these frauds more convincing as technology has advanced. Older adults were more likely to lose more money than younger adults, despite being less likely to report fraud.

The most effective steps consumers can take to protect themselves from imposter scams are to “pause and verify.” Fraudsters prey on fear and urgency, hoping to trigger a knee-jerk emotional reaction from victims, so pausing before reacting to unsolicited messages can help avoid falling victim to a scam. Additionally, consumers should verify who they’re communicating with and not respond to unsolicited messages, but independently seek out the respective official website or other communication channels.



Read more: Imposter scams are top fraud of 2023, FTC says. How to protect yourself