● Covered by 1 source · 1 reportMedium impact1 negative
Online Scams Cost Americans Nearly $150 Billion Last Year, Seven Times More Than Reported
Key points
- CFA estimates online scams cost Americans $148.2 billion last year.
- Only 14% of financial fraud victims report crimes to law enforcement.
- Crypto and investment scams account for the largest losses.
- AI is contributing to the increase in scam sophistication.
Estimated Losses Far Exceed Reported Figures
The Consumer Federation of America (CFA) has released an estimate indicating that online scams cost Americans nearly $150 billion in the past year. This figure is approximately seven times greater than the amount officially reported to the FBI. The CFA attributes this significant gap to the fact that a large majority of scam victims do not report their losses to law enforcement agencies.
Underreporting of Cybercrime
A federal survey cited by CNET found that only about 14% of individuals who experience financial fraud report the incident to any law enforcement body. Applying this reporting ratio to the total reported losses led the CFA to its estimated total of $148.2 billion in scam-related damages. This underreporting makes it difficult to accurately assess the full scope of the problem.
Leading Categories of Fraud
Investment fraud was the most costly category in the FBI's data, with reported losses exceeding $8.6 billion. Cryptocurrency-related incidents accounted for nearly $11.4 billion in reported losses, an increase of about 22% from the previous year, and the CFA estimates the true cost in this area could be closer to $80.7 billion. Business email compromise and tech support scams also contributed significantly to the reported losses.
Role of AI in Scam Proliferation
The rapid increase in the scale and sophistication of online scams is partly driven by advancements in artificial intelligence (AI). Scammers are utilizing AI to create deepfake voice and video calls, impersonating family members in emergency situations to extract money. AI also facilitates the creation of fake documents, making it easier for fraudsters to deceive victims.
Platforms Used by Scammers
Data indicates that the top three platforms frequently used by scammers are all owned by Meta. Facebook was cited in 57% of scam incidents, Instagram in 22%, and WhatsApp in 8%. These platforms provide avenues for scammers to reach and defraud individuals.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
The Consumer Federation of America (CFA) estimates that online scams cost Americans almost $150 billion last year, significantly higher than the amounts reported to the FBI. This increase is attributed to a rise in cyber scams, with most victims not reporting their losses to law enforcement agencies. The discrepancy highlights a growing problem in cybersecurity and financial fraud.