The primary channel used by fraudsters was social media, although the FTC has not specified which platforms are the most commonly exploited. As for the methods of scams, the most frequent involved imposters, where criminals posed as romantic interests, family members in distress, government representatives, or technical support agents.
Some cases are extreme. For example, a woman in France lost $800,000 after being deceived by someone pretending to be actor Brad Pitt. However, in most cases, scammers rely on tactics that create anxiety and urgency, which can confuse even the most cautious individuals.
A notable example is that of Charlotte Cowles, a financial columnist for The Cut, who shared in a viral essay how she was scammed out of $50,000 in cash, money she handed over to a stranger in a shoebox. Although her story did not garner much empathy from her readers, it highlighted how criminals can fabricate convincing scenarios that lead people to act irrationally.
“I’m not someone who panics easily or falls for conspiracies about drug trafficking, money laundering, or CIA agents showing up at my door,” Cowles wrote. “Until suddenly, I was.”
Contrary to what many might think, scam victims are not always elderly individuals or those unfamiliar with technology. In fact, the FTC revealed that young people aged 20 to 29 reported losses more frequently than those over 70 years old. However, when older adults fell victim to scams, the amounts lost tended to be higher.
Some types of scams have been popular for years, while others are rapidly gaining traction. In 2024, scams related to job opportunities and business ventures ranked third, with the number of reports nearly tripling between 2020 and 2024. While these scams accounted for 90 million in losses in 2020, last year the figure rose to 501 million.
Fraudsters typically contact their victims through social media, phone calls, emails, or text messages. However, with the advancement of deepfake technology powered by artificial intelligence, we are likely to see an increase in phone scams in the future, where criminals accurately mimic the voices of loved ones to create fake emergency situations. The advice is clear: always verify before acting. If you receive a suspicious call, contact the person involved directly to confirm its legitimacy.
By: Nestor Castillo, ForAllTechNews Director