Banks Continue To Suffer Massive Losses As Scammers Intensify Efforts

According to a recent report by the Federal Trade Commission (FTC), US banks failed to prevent scammers when it came to absconding with nearly half a billion dollars of customer funds in 2023. The FTC, in its overview of scamming trends, documented 11,950 instances of bank transfer and payment fraud last year, resulting in a staggering $492 million in customer losses.

The Scams Keep On Coming

These losses emanate via various scams targeting bank accounts, including imposter schemes, check fraud, and phishing attacks. Overall, scammers pilfered $10 billion in 2023 using both traditional and digital methods.

Investment scams topped the list, accounting for $4.6 billion in losses, marking a 21% surge compared to 2022. Imposter scams followed closely, racking up $2.7 billion in stolen funds. Emails have emerged as the most effective tool for fraudsters, surpassing phone calls and text messages.

Not Just Crypto

Despite concerns about cryptocurrency fraud, the amount lost in the crypto markets was lower than in the traditional banking system, with 11,671 reported cases and a total loss of $331 million. This is important because it shows that, although the Fed has often chastised crypto for being too volatile and unpredictable which, in their opinion, leads to unnecessary losses. However, many in the crypto community were quick to point out that while crypto has its flaws, the traditional finance system does too.

In any case, the FTC is reportedly pursuing a multifaceted strategy to combat consumer fraud, which includes cracking down on illegal telemarketing groups, banning impersonator fraud, and prosecuting investment and business opportunity scams.