The report reveals a dramatic increase in consumer reports, reaching over 6.47 million in 2024, a significant rise from the previous year. This includes 2.6 million fraud reports and 1.1 million identity theft reports. The financial impact is staggering, with consumers reporting a total loss of over $12 billion to fraud in 2024, an increase of over $2 billion from the previous year. The median loss for all fraud reports was $497, but for scams like investment-related fraud, the median loss was a staggering $9,196.
The Shifting Demographics of Victims
While it's a common belief that fraud primarily targets the elderly, the data shows a more complex picture. Younger people are falling victim to fraud more frequently. For instance, people aged 20-29 reported losing money to fraud in 44% of their reports. This is significantly higher than the 24% of reports from people aged 70-79 that indicated a loss, and the 21% from those aged 80 and over.
However, when older individuals do experience a loss, the financial impact is far greater. People aged 70 and older reported much higher median losses than any other age group. This highlights that while young people may be more susceptible to scams, older people are often targeted for more costly fraud schemes.
Top Threats and How They Affect Businesses
Imposter Scams: Imposter scams were a major issue, with over 845,806 reports and a total reported loss of $2.95 billion. These scams often involve bad actors impersonating government officials, businesses, or technical support experts to trick victims into giving them money or information. For a business, this can translate into an employee being deceived into giving away sensitive company data or wiring money to a fraudulent account.
Identity Theft: Identity theft reports totaled 1.1 million, with credit card fraud being the most common type. This includes both new credit card applications and misuse of existing accounts. For a company, this could mean an employee's personal information is compromised, or a company credit card is used for unauthorized purchases.
Payment Methods: Bank transfers and cryptocurrency were the top methods for aggregate losses, accounting for $2.09 billion and $1.42 billion in losses respectively. This underscores the importance of secure financial practices and employee training to prevent fraudulent transactions.
What Tekdana Recommends:
The report's findings underscore the importance of a proactive approach to cybersecurity. Here are some of the actions businesses can take:
Implement Strong Security Policies: Develop and enforce strict security policies regarding data access, financial transactions, and the use of company devices.
Employee Training: Train your employees to recognize common scams, such as imposter scams and phishing emails, which were a contact method for 25% of fraud reports when a method was identified.
Data Protection: Secure all sensitive customer and company data with advanced encryption and access controls.
Regular Audits: Regularly audit your systems and processes to identify vulnerabilities before they can be exploited.
In a landscape where fraud and identity theft are constantly evolving, relying on outdated security measures is a recipe for disaster. Tekdana is here to help your company navigate these threats and build a resilient cybersecurity posture that protects your assets, employees, and customers.