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    • Scam victims have lost trillion this year. How to protect yourself.
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    Scam victims have lost $1 trillion this year. How to protect yourself.

    Online Niel Posted on

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    scammers they were wrong casualty worldwide by a staggering $1 trillion in the past 12 months, according to a new report.

    That number is up from $159 billion lost last year, according to the Global State of Scams 2024 report by the Global Anti-Scam Alliance in partnership with Feedzai, a company that helps financial institutions manage their fraud.

    The latest annual report drew input from more than 58,000 respondents worldwide.

    The hardest hit victims were in the US, where the average loss per victim of the scam was $3,520, followed by victims in Denmark and Switzerland, who lost $3,067 and $2,980, respectively.

    Some arguments in the report

    While the $1 trillion in losses is a staggering number — and could be underreported because people are often too ashamed or embarrassed to report being scammed — there are some takeaways from the report, said Jas Anand, a senior of the Feedzai fraud. director who leads the North American fraud team.

    “I think the biggest improvement has really been in education and people’s ability to confidently identify scams,” Anand told USA TODAY.

    Sixty-seven percent of survey respondents said they know what a scam looks like.

    “Now, what’s not very helpful there is that even though people are educated, the attack rate of scams is regardless of how educated they think they are or whether they can detect scams, so it’s not very encouraging,” Anand said.

    Scams on the rise

    Here are some other highlights from the global fraud report:

    • Almost half of the world experiences a scam at least once a week.
    • 1 in 2 survey respondents said they had been exposed to multiple scams in the past 12 months.
    • Shopping scams are the most common around the world.
    • Almost half of scams end within 24 hours of contact.
    • Globally, only 4% of victims got their money back.
    • 36% of victims reported severe emotional impact after a scam.
    • 70% did not report the scam to law enforcement.

    Increasing the AI ​​used in scams

    There has been a significant increase in the use of artificial intelligence in scams, Anand said. This can include the grandparent scam, where scammers now take a photo from social media and send fake photos to grandparents, or make a fake voice recording using the grandchild’s voice to ask for help.

    “The ability to convince people of fraud using AI has increased significantly,” he said.

    AI was also used to call a fake meeting where deepfakes of a company’s CEO and CFO in the video meeting convinced an employee to send $20 million to the scammers, Anand said.

    The victims of the scam are greatly affected

    The losses for victims of fraud that hit more than $1 trillion globally are surprising but not unexpected, said Eva Velasquez, president and CEO of the Identity Theft Resource Center. Velasquez is a featured speaker at a Global Anti-Scam Alliance conference next week and was familiar with the study.

    “Scammers are getting much better at not only social engineering, not only will they get people to shell out large sums of dollars in one fell swoop, but they are able to build relationships with people in a way that they can continue to- make them self-compromise, no. not just their data, but their dollars, which can start to get into six figures,” Velasquez told USA TODAY.

    A report recently released by Velasquez’s organization also offers some insight into the specific impact on victims of fraud, and identity theft victims in particular.

    Among some of the findings of a survey of general consumers and victims who reported their crimes to the organization:

    • Fifty-two percent of general consumers surveyed said their personal information has been stolen or misused; up from 30% the previous year.
    • The rate of victims considering suicide fell to 12 percent of respondents, down from 16 percent last year, which was an all-time high. “12 percent is still way too high,” Velasquez said. “Often, a person is not just grieving the loss of their money and data, they are grieving the loss of a relationship they thought was real,” she said.
    • There are changing habits among both victims and general consumers, namely that the use of passkeys (or digital credentials such as Face ID or fingerprints) is increasing by 30% among consumers generals. That’s good news, Velasquez said, as more consumers adopt stronger protections.
    • Victims are revictimized: 49% of general consumers said they were victimized more than once, and 47% of victims reported the same. Identity theft can be a vicious cycle, Velasquez said, and she worries that consumers may be weary of protecting themselves.
    • More victims report losses at extremes: 31% of general consumers said they lost less than $500, while 23% of Identity Theft Resource Center victims reported the same and 12% of general consumers and 23 % of ITRC victims said they lost more than $10,000. Velasquez said that while the bigger numbers are always amazing, there are also many fraud victims who lose smaller amounts, but it’s just as devastating to their financial well-being.

    Romance Scam: A widow opened up to a new love. Instead, she was catfished for a million dollars.

    Tips to protect yourself from scams

    Here are some tips from Anand and some previously reported and commonly shared tips from the Identity Theft Resource Center:

    • Take care of the sense of secrecy and urgency: In almost every scam, the scammer will emphasize that something needs to be done quickly and quietly without telling anyone, Anand said. “These should generally be a major warning sign or red flag,” he said.
    • Use multi-factor authentication: Two-factor authentication or multi-factor authentication adds an extra layer of protection to your account through another verification method, such as a text code, a phone call, or an app.
    • Use unique passphrases for each account: Use a passphrase longer than 12 characters or a phrase unique to you instead of an 8-character password. Also, don’t reuse the same passphrase for multiple websites or accounts.
    • Use secure online payment methods: Only buy from trusted websites and use trusted payment methods. If you shop on an unfamiliar site, use a payment method that has a dispute resolution process, such as a credit card or PayPal.
    • Never open a link from an unknown source: Don’t click on links or download attachments in email or text unless you expect something from a person or business you know.
    • Sign out of your accounts when you’re done: Always log out of online or mobile accounts so no one can gain access if they get your device.

    Betty Lin-Fisher is a consumer reporter for USA TODAY. Get to her at [email protected] or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free newsletter The Daily Money, which will include consumer news on Fridays,
    Here.

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