3/12/24 Sean Sabin, Axios
Americans lost roughly $1.3 billion in 2023 to scammers pretending to be from the government or tech support, according to new FBI data.
Why it matters: Record-breaking profits motivate fraudsters to double down on their schemes.
How it works: Scammers pretend to be a government official, tech support agent or customer service representative to trick people into sending money or other sensitive information their way.
- These impersonators typically call with fake stories that would motivate someone to share their private identifiable details with them.
- For example, a scammer might call to say someone will lose their Medicare benefits if they don’t pay a new fee. Or they might claim there’s a virus on their computer that requires the victim to buy a special tool.
By the numbers: U.S. adults’ losses from tech support and government impersonation scams have grown more than sevenfold since 2019, according to the FBI’s annual internet crime report, released last week.
- In 2019, the FBI received 27,506 complaints of government and tech support impersonation scams, resulting in $178.3 million in losses.
- By 2023, those losses had topped $1.3 billion from 51,750 reports.
Zoom in: Tech support scams — where a fraudster attempts to make victims believe they have a virus on their computer — have skyrocketed over the last five years.
- Between 2019 and 2023, the number of tech support impersonation complaints nearly tripled, growing from 13,633 to 37,560.
- Older people, or those over 60, accounted for more than half of losses to tech support scams in 2023, per the FBI report.
Yes, but: These numbers are based only on the cases that victims reported to the FBI’s Internet Crime Complaint Center.
- Many victims won’t call the police after a scam or cyberattack due to shame over falling for a ruse or fear of retaliation.
The big picture: Impersonation scams have become easier due both to the growing availability of generative AI tools and the popularity of remote work.
- Scammers can now replicate someone’s voice with as little as a three-second clip, according to McAfee.
- Loneliness and isolation have made people more susceptible to calls from scammers.
- Between the lines: Impersonation scams have evolved from cold-calling telemarketing scams to online operations to lure people in.
- Many tech support scams now start as a web pop-up advertisement, according to Sophos and the Federal Trade Commission.
- The intrigue: People of all ages are susceptible to scams — not just the elderly.
- Only 40% of people who fell for tech support scams reported to be over 60, according to the FBI.
- Even New York Magazine’s personal finance columnist fell for a customer support scam where she put $50,000 into a shoebox and handed it off to someone in an unmarked vehicle.
The bottom line: Be on high alert for imposters.
- The government will never call, email, text or send a social media message to ask for money, the FTC says.
- Be wary of anyone who calls randomly with a supposedly urgent financial need — especially if they ask you to buy a gift card or to transfer cryptocurrencies.
