Scams

 

The Global State of Scams Report 2024 states that scammers have defrauded individuals globally of $1.03 trillion. Graphic: Global Anti-Scam Alliance (GASA) and Feedzai

Scammers have defrauded individuals globally of an astonishing $1.03 trillion over the last year. This figure has increased from $1.026 trillion the previous year, as detailed in the 2024 Global State of Scams report by the Global Anti-Scam Alliance (GASA), in collaboration with Feedzai, a company specializing in fraud management for financial institutions.

According to the report, globally, just 4% of individuals who fall victim to scams manage to reclaim their losses. The the U.S. and U.K. had the highest rates of recovery but the report states these figures are still low on a worldwide scale, leaving most scam victims without a solution.

This situation underscores the pressing need for enhanced consumer protection strategies and more efficient financial recovery systems, the report notes. Additionally, 70 percent of victims choose not to report the scam.

Even with persistent efforts to fight scam activities through awareness initiatives, scams continue to pose a major and increasing threat, with almost half of consumers worldwide encountering a scam attempt at least once a week.

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Some regions are more severely affected, with countries like Brazil, Hong Kong, and South Korea experiencing nearly daily scam exposure. Vietnam, Saudi Arabia, and China reported a significant decrease in scam incidents.

Shopping scams and investment scams were the most prevalent types, the report, released November 2024, noted.

“Phone calls and text/SMS messages remain the primary methods through which scammers operate, with text/SMS scams being particularly common in the Philippines, South Korea, and Brazil. Platforms like WhatsApp, Instagram, and Gmail are also frequently exploited by scammers, with a notable rise in WhatsApp scams across several regions,” the report stated.

In the report, Jorij Abraham, managing director of GASA, explained, “Very little has changed in the last 12 months, as the world’s consumers bear the weight of another $1.03 trillion stolen by scammers. We must do more to combat these crimes, as they continue to erode trust in our systems and cause immense harm to individuals and economies.”

The financial impact of scams is substancial. The U.S., Denmark, and Switzerland experienced the highest losses per individual, as Americans face an average loss of $3,520, the report states. Scams in Pakistan had a significantly larger effect, amounting to 4.2% of the nation’s Gross Domestic Product (GDP).

Kenya and South Africa reported GDP impacts of 3.6% and 3.4%, respectively. The financial burden that scams place on both individuals and national economies highlights the critical need for improved protections and global collaboration, the report states.

Report authors also stated that scam and fraud victims have found some assistance with the Identity Theft Resource Center (ITRC). It offers education and research efforts designed to help people protect themselves from traditional identity crimes, scams and fraud. The center notes that irrespective of age, income, education, gender or race, every person and every business can be a victim of a scam.

The most recent “Trends in Identity Report” found that identity thieves are better at looking and sounding “legitimate” thanks to generative AI. Victims are facing more severe types of identity misuse with higher impacts. Identity thieves already have enough information to open new lines of credit and other types of accounts for most U.S. adults.

Recommendations for people to protect themselves include identifying red flags, such as asking or requesting personal information, like bank information or a social security number.

The Federal Communications Commission states there are four signs that something may be a scam including: scammers pretend to be from an organization you know, they say there is a problem or a prize, scammers pressure you to act immediately, and they tell you to pay in a specific way.