FBI’s Internet Crime Complaint Center releases elder fraud data for 2022
- Losses reported nearly double, up 64%
- Investment losses involving crypto up 300%
- Victims sending money with crypto overall up 350%
- Tech support fraud most common; twice the number of complaints as the next most common; doubled last year
- But for money lost crypto investment fraud tops the list
- Government impersonation nearly doubled
- Also has state by state breakdowns
Thailand busts operation that called older people in the US, claimed to be law enforcement, that there was a problem with their bank and they needed to wire money to keep it “safe;” 21 arrested, from India and Thailand; $87 million lost to group
Australia releases 2020 fraud statistics
- Reported losses went up from $176 million in 2020 to $569 million in 2022
- Most common way for initial victim contact was text message
- Investment fraud far and away the top source of losses
- Older victims 65+ had most complaints and losses
- Total fraud losses $3 billion
Global Anti-Scam Alliance releases ten recommendations to fight online fraud worldwide
Much of what the public believes about fraud is simply and demonstrably wrong. From victim blaming, to thinking that fraud is rare, to the implicit thought that only dumb people fall for frauds and that they are easily avoided, many people are simply mistaken, and of course that affects how fraud stories are reported and how consumer education is written. The Fraud Report is thrilled that retired Psychology professor and fraud expert Anthony Pratkanis has agreed to work on a fraud myth of the week.
Myth 1: Fraud victims, especially older ones, tend to be lonely with few social contacts. In 1996, an AARP survey of older victims found just the opposite: Older fraud victims had extensive social networks and engaged in social and community activities the same or surpassing non-victims. Later studies confirmed these results and also revealed that con grifters will tailor their scam and pitch to fit the victim. As the UK Office of Fair Trading described the results of their 2006 survey: “Our research dispels the myth that only the vulnerable, elderly or naïve are taken in by scams. Anyone can be taken in because scams are customised to fit the profile of the people being targeted. There really is a scam for everyone.”
However, it should also be noted that fraud criminals will attempt to isolate a victim – for example, by creating false urgency in a grandparent scam, driving a wedge between the victim and family & friends, making an investment tip secret, attacking those who might intervene, urging the victim to hide their “romance,” creating a cohesive, but isolated network through seminars, social media, and derogating those who disagree as in MLM scams, plus other such tactics.
Fraud Studies: Here are links to the studies I’ve written for the Better Business Bureau: puppy fraud, romance fraud; BEC fraud, sweepstakes/lottery fraud, tech support fraud, romance fraud money mules, crooked movers, government imposters, online vehicle sale scams, rental fraud, gift cards, free trial offer frauds, job scams, online shopping fraud, and crypto scams
Fraud News Around the world
- Colorado: Man from India pleads guilty to laundering victim money from scam that impersonated law enforcement and claimed victims were to be arrested and deported; worked with call centers in India
- Europe busts online investment fraud operation; five call centers closed; five arrested; Bulgaria, Romania and Israel actions; $98 million in losses
- Police and industries join forces to fight scam web sites
- UK victims of cell phone theft angry with police; claim that even when they have tracked the location of the stolen phone police don’t act
- Check fraud up 165% in the US over the last three years; Postal Inspection Service says checks stolen from “blue box” mail storage containers up 388% in the same time; losses $19 billion
- Google warns that scammers are now replacing phone numbers on their map function with numbers that go to scammers
- Nigeria arrests 44 for internet fraud
- UK politicians vow to end free trial offer subscription traps
- How a 26 year old Ohio man, originally from the UK, ran a massive investment fraud having victims buy rare wine and whisky for storage in the UK: £10.6 million lost; did not actually have the spirits
- Youtuber sends fake cash to a tech support scammer in India; includes Apple Airtag and traces route of the money
- Thailand: Police arrest couple that opened mule bank accounts for call center that called people claiming to be police
- Video: Pizza delivery man trips robbery suspect the police were chasing
- Man uses Nerf guns to rob two banks before being caught
- Man applies to be a hitman at rentahitman.com; arrested by FBI
- FTC sends notices to 700 companies; such as makers of dietary supplements, warning them that they must have substantiation to back up product claims; letters put them on notice so the FTC can issue fines if they don't
- Congress subpoenas FTC chair Lina Khan for documents from FTC Twitter probe
- New Supreme Court decision makes it easier to challenge the constitutionality of the FTC and the SEC
- FTC gets court orders against companies that processed credit card payments for overseas tech support scams
- FTC gets order against motocross parts maker over Made in USA claims; company to pay $221,000
- CFPB issues policy statement delineating what the term “abusive” means
- Florida: Man gets two years prison for PPP fraud; got $586,000
- 48 employees of Cook County (Chicago) clerks office fired over PPP fraud
- Boston: Man pleads guilty to PPP fraud; got $660,000
- South Carolina: Woman gets 2.5 years prison for PPP fraud; got $180,000
- Texas: Man gets 56 months prison, woman gets 24, over PPP fraud; got more than $1 million
- Illinois: Associate of BEC scammer/money launderer Hushpuppi pleads guilty; to return stolen $8 million
- Maryland: First of three Nigerians extradited from there and charged with BEC fraud; money went to accounts in South Africa; more than $6 million involved
- BEC scammers are now using emails from free Quickbooks service to reach victims
- Hits German super yacht maker
- Hackers post information about customers of networking giant CommScope after ransomware attack
- Attack on second largest insurance company in Massachusetts
Bitcoin and cryptocurrencyATM SkimmingJamaica and Lottery FraudRomance Fraud and Sextortion
- New Jersey: Four Nigerians indicted for romance fraud; losses at least $4.5 million
- India: Two Nigerian men get five years prison for romance fraud that involved a parcel delivery and fees to collect it
- Florida: Police arrest 81 year old romance scam victim who continued acting as a money mule after being warned by police
- New York: Florida woman pleads guilty to romance scam where she stole $2.8 million from 87 year old holocaust victim
- Boston: Man (Nigerian?) gets 55 months prison for romance scam; got $1.1 million
- New Jersey: Man (Ghanian?) convicted of romance fraud; kept some funds and sent the rest to Ghana
- Peel police in Ontario charge man with romance fraud
- Nigeria arraigns man for romance fraud