Judging from the latest statistics, the most lucrative work-from-home job in America may be Con Artist. Fraudsters are utilizing texts, social media, fake websites, apps, emails, and old-fashioned voice calls to separate Americans from their money — billions every year. They play on our greed, or charity, or desperation. And they take all forms of payment.
The best way to fight back against fraud is to be aware of current schemes so you don’t fall victim in the first place. Below we share the top financial shakedowns, with enough details to help you recognize red flags, and statistics that will blow your mind. Read on to learn how to avoid getting fleeced (and how to report it if you are).
Identity Theft and Credit Card Fraud Trends
If you’ve been the victim of identity theft or credit card fraud, you’re hardly alone.
According to the Federal Trade Commission (FTC), there were 552,000 reported cases of identity theft through the first half of 2024. At this rate, the year is on track to surpass the number of reported cases in 2023.
Meanwhile, there were 214,607 reported cases of credit card fraud by mid-year, up 6% from the previous six months.
The impact of both crimes can be substantial. In 2023 alone, some 2.6 million consumers collectively lost more than $10 billion to fraud — a 14% increase from 2022.
There are several potential reasons for the surge. More people are turning to digital tools to handle everyday tasks, like shopping and banking. At the same time, scam email messages — no, that’s not the U.S. Post Office — have also spiked in recent years. And finally, the rise of crypto seems to play a role: The FTC has warned consumers that no reputable utility or creditor will demand payment only in crypto.
If you’re a victim of credit card fraud, it’s important to report it ASAP. You can get your credit report and find out your credit score for free at AnnualCreditReport.com®.
You can also enlist the help of a money tracker app, which allows you to manage all of your finances from one convenient dashboard.
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33 Identity Theft and Credit Card Fraud Stats
Below we do a deep dive into the most common types of fraud: imposters, online shopping scams, fake prizes and sweepstakes, false job opportunities, fictional charities, investment swindles, and more. All numbers quoted below are from 2023 FTC data.
1 Imposters: Reports Filed
The total reports filed in this one category came to 853,935, with 21% of filers admitting losses. An imposter is a person who pretends to be someone else to steal your personal information or money. They might call, text, or email you and may pose as someone you know. (“I’m on vacation in London and lost my wallet! Can you send me some cash?”).
2 Imposters: Losses
The median loss suffered by victims was $800. The total dollar amount of imposter scam losses was $2.668 billion.
3 Imposters: Scenarios
The most common way imposters approached targets was via email, and victims often paid via credit card.
4 Imposters: Top States Affected
Oregon led with 2,640.7 reports per million people. Washington and Colorado followed close behind.
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5 Online Shopping: Reports Filed
Total reports filed came to 369,469, with 53% claiming losses. In an online shopping scam, someone pretends to have a legitimate business by creating a phony website or posting fake ads on a real retailer’s site.
(Another form of this fraud is when scammers create and post fake negative reviews of small businesses and then tell owners that they’ll remove the reviews in exchange for digital gift cards.)
6 Online Shopping: Losses
The median loss suffered by victims was $125. The total dollar amount of online shopping scam losses totaled $392 million.
7 Online Shopping: Scenarios
Victims are most often taken in by websites or apps — not surprising, given the nature of this fraud — and are asked to pay via gift card.
8 Online Shopping: Top States Affected
Delaware led with 1,183.4 reports. New Hampshire and Colorado placed second and third.
9 Prizes & Sweepstakes: Reports Filed
Total reports filed came to 157,520, with 13% reporting losses. “Great news!,” a voice over the phone gushes. “You’ve won money or valuable prizes!” All the winner needs to do is provide their bank account information or pay a processing fee.
10 Prizes & Sweepstakes: Losses
The median loss suffered by victims was $878. Total losses equaled $338 million.
11 Prizes & Sweepstakes: Scenarios
Phone calls, texts, and emails are the most common contact method. Gift cards were of the top payment types.
12 Prizes & Sweepstakes: Top States Affected
West Virginia topped the list with 781.2 reports. Delaware and Alabama placed and showed.
13 Internet Services: Reports Filed
Total reports filed equaled 125,118, with 7% admitting losses. This category includes the use of fake messages or copycat sites — ostensibly from someone’s internet service provider — as part of a phishing or spoofing scam used to commit identity theft. It also includes theft of personal information: debit card PINs, credit card and bank account numbers, and passwords.
14 Internet Services: Losses
The median loss suffered was $250. Total losses came to $36 million.
15 Internet Services: Scenarios
Typically, individuals are contacted via social media and send money via payment app.
16 Internet Services: Top States Affected
Delaware was first in line with 418.6 reports per million people. Nevada and Florida came close on its heels.
17 Job Opportunities: Reports Filed
Total reports filed were 110,364, with 32% reporting a loss. Scammers post genuine-looking want ads and business opportunities in print and online. The catch? There is no job. They just want your personal information and your money. As just one example, a “work-from-home career” starts after the target pays for training, certifications, and/or starter kits.
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18 Job Opportunities: Losses
Consumers experienced a median loss of $2,137. Total losses reached $491 million.
19 Job Opportunities: Scenarios
People are most often connected by text and pay the scammers via cryptocurrency.
20 Job Opportunities: Top States Affected
Nevada was again the top contender, with 408.3 reports per million people. Arizona and Georgia achieved second and third place.
21 Advance Payments: Reports Filed
Total reports came to 29,878, with 35% of them suffering a financial loss. Advance payments, as the name implies, refer to a consumer pre-paying for a service. Credit service businesses purport to sell information that will allow the consumer to create a new credit file — perhaps after an identity theft occurred.
22 Advance Payments: Losses
The median loss of each victim was $638. The total amount lost was $75 million.
23 Advance Payments: Scenarios
Fraudsters typically communicate with potential victims via websites and apps for this kind of scam, and request wire transfers to collect the money.
24 Advance Payments: Top States Affected
Mississippi is number one this time, with 152.3 reports per million people. Georgia and Florida follow as numbers two and three.
25 Fake Charities: Reports Files
Total reports came to 9,809, with 27% reporting a monetary loss. Scammers pretend to be from a real or fake charity and ask you to make a donation right then for, say, a natural disaster that just occurred.
26 Fake Charities: Losses
The median loss was $392. The total amount lost was $22.5 million. Asking people to support a heartwarming cause has, unfortunately, been quite successful.
27 Fake Charities: Scenarios
Messages go out via social media, and have the potential to go viral. Scammers most often collect their money through a payment app.
28 Fake Charities: Top States Affected
Alaska led the way with 38.0 reports per million people. Georgia and Nebraska came in second and third place.
29 Investments: Reports Filed
Total reports came to 107,699, with 75% claiming a financial loss. With investment fraud, a scammer tries to get you to invest: in stocks, bonds, real estate, whatever. They may provide false information about a real investment or make something up entirely.
30 Investments: Losses
The median loss was $7,768. Total losses equaled $4.642 billion.
31 Investments: Scenarios
These so-called investment opportunities are described on social media platforms, with cryptocurrency being the top payment method.
32 Investments: Top States Affected
Nevada (again!) leads the way, with 289.9 reports per million people. Florida and Arizona trail behind in terms of percentage of population, but are way ahead in absolute numbers: Washingtonians filed 1,074 reports; Californians, 5,349 reports.
33 Bonus Stat: Tax Prep
A missing refund is one sign that someone else may have filed a fake tax return in your name. Here’s more information about what to do when you don’t receive a tax refund.
The FTC notes that 5,949 reports about tax preparation fraud were filed in 2023, with 10% of people reporting a monetary loss. The total loss was $1.9 million with a median loss of $500.
How to Avoid Credit Card Fraud
As these numbers show, there are plenty of scammers out there. Here are some ways to protect yourself against money scammers:
• Avoid using debit cards, which are directly connected to your bank account. Credit cards and payment apps tend to be safer. Check your banking and credit card statements regularly, watching for errors and suspicious charges.
• If your bank offers free transaction alerts, sign up now. For example, you can get an alert whenever a large payment (you choose the number) hits your account. Find out more about different types of bank fraud.
• If you get a call from a company asking for payment data or other personal information, hang up. If it’s a company you normally deal with, call them back directly to see if the call was genuine.
• Use password protection on your smartphone and computer devices. Keep your browsers up-to-date, and use reputable anti-virus software downloaded from the app store (not an ad, email or website). Avoid using public WiFi.
• Shop at reputable retailers only, including but not limited to the ones you use online. If you have questions about a store, check them out on the Better Business Bureau website.
• When pumping gas or using an ATM, watch out for skimmers: devices that capture your account information for fraudulent purposes. If anything looks odd, let the establishment know.
• Be cautious about clicking on links from unknown sources, checking to make sure that an email or text message really came from the place it claims and is a reputable organization.
• Monitor your credit report and watch for inaccuracies. What qualifies as credit monitoring varies, so look for services that send alerts whenever something new hits your report. You may also be able to sign up for free credit monitoring.
How to Report Credit Card Fraud
The first step is to file a dispute with your credit card company. Then you can contact your police station or sheriff’s office. You can also report the fraud to your state’s attorney general (get their contact info from https://www.naag.org/find-my-ag/) You can also submit an online claim with the FTC at https://reportfraud.ftc.gov/#/
The Takeaway
Scammers are reaching out via text, social media, fake websites, apps, emails, and old-fashioned voice calls to separate you from your money. Their stories play on your greed, or charity, or desperation. And they take all forms of payment — but they especially like gift cards and crypto. By learning to recognize the top schemes, you can help protect yourself from getting swindled. More pro tips: Monitor your transactions, avoid using debit cards for purchases, and don’t ever give out your personal or financial info unless you’re 100% sure of who you’re dealing with.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
What are some common credit card scams?
Scammers can be pretty creative. Phishing is when a con artist tries to get you to share personal info or credit card information on the phone, by email, or text. Fake online websites can be built to steal credit card info. Skimmers can be set up on ATMs and credit card readers. And people with ill intent can monitor public WiFi for credit card info. And these are just some of the types of financial fraud out there.
How do credit card scams happen?
Sometimes, your physical credit card can be stolen. More often, someone gets your credit card data without having the actual card. Identity thieves can also steal personal information, set up credit cards in your name, and start spending.
How can you spot credit card fraud?
As you monitor bank statements, credit card statements, and your credit report, you may spot information that just isn’t right. Although this isn’t always because of credit card fraud, that’s a common cause. Proactively investigate when something looks suspicious. You can also set up alerts with your bank to flag certain kinds of transactions.
Photo credit: iStock/SaskiaAcht
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