FTC Reports $12.5 Billion in Fraud Losses, Issues $25.5M in Refunds

The Federal Trade Commission (FTC) has released alarming new data revealing that consumers lost a record $12.5 billion to fraud in 2024 — a 25% increase from the previous year.

The agency also announced it is distributing $25.5 million in refunds to victims of a deceptive tech support scam, underscoring the ongoing battle against fraudulent practices targeting consumers.

Fraud losses surge to several billion

According to the FTC’s latest Consumer Sentinel Network report, while the total number of fraud reports remained steady at 2.6 million, the percentage of consumers who reported losing money increased sharply. In 2023, 27% of fraud reports included financial losses; in 2024, that figure jumped to 38%.

Investment scams accounted for the largest portion of reported losses, with consumers losing $5.7 billion — 24% more than in 2023. Imposter scams, where fraudsters pose as trusted entities such as government agencies or businesses, were the second-largest category, causing $2.95 billion in losses. Additionally, scams involving payments through bank transfers and cryptocurrency surpassed all other payment methods in reported financial damage.

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the evolving nature of these scams. “The data we’re releasing today shows that scammers’ tactics are constantly evolving. The FTC is monitoring those trends closely and working hard to protect the American people from fraud,” he stated.

Among the most commonly reported scams were:

• Imposter scams – The leading category, with government imposter scams alone accounting for $789 million in losses.
• Online shopping scams – The second-most frequently reported type of fraud.
• Business and job opportunity scams – Consumers lost $750.6 million, with job and employment agency scams seeing the most rapid growth.
• Investment-related scams and internet services fraud – Both saw significant increases in reported losses.

For the second consecutive year, email was the most commonly used method by scammers to contact victims, followed by phone calls and text messages.

Refunds to tech support scam victims

The FTC separately announced it is returning more than $25.5 million to consumers deceived by the tech support firms Restoro Cyprus Limited and Reimage Cyprus Limited. These companies, both based in Cyprus, used deceptive marketing tactics to trick consumers into purchasing unnecessary computer repair services.

The FTC’s investigation, launched in March 2024, found that the firms violated the FTC Act and the Telemarketing Sales Rule by misrepresenting security and performance issues to sell their services. As part of a settlement agreement, the companies were prohibited from engaging in deceptive marketing or telemarketing practices.

Refunds will be distributed through 736,375 PayPal payments between March 13 and 14, with eligible consumers receiving an email notification. The payments must be redeemed within 30 days. Consumers with questions about their refund can contact Rust Consulting, Inc., the FTC’s redress administrator, at 844-590-1102 or visit the FTC’s website for more details.

The FTC continues to monitor fraud trends and urges consumers to stay vigilant. To minimize risk, consumers should be skeptical of unsolicited emails, calls, or messages requesting money or personal information and avoid wire transfers or cryptocurrency payments to unknown parties, as these are harder to recover.