This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.
|
Last updated: August 12, 2025
|
Last updated: August 12, 2025
Fraud in the United States reached unprecedented levels in 2024. Consumers reported a total of $12.5 billion in losses, an increase of 25 percent compared with 2023. The Federal Trade Commission (FTC) received approximately 2.6 million fraud reports, with more than one in three people who reported a scam also reporting a monetary loss. This marks a notable jump from 2023, when only one in four scam reports involved financial loss.
The data shows that while the overall number of reports has not grown as dramatically as in previous years, the average dollar loss per incident is rising sharply. Scammers are becoming more sophisticated, focusing on higher-value targets and more convincing narratives.
The ten most common categories of consumer fraud reveal both long-standing threats and rapidly emerging risks:
Several long-term patterns are reshaping the fraud landscape:
Median losses vary significantly by scam type, indicating that not all fraud has the same financial impact on victims:
These differences are important for prioritizing consumer protection and education efforts.
The 2024 data confirms that fraudsters are opportunistic and adaptable. They exploit current events, economic pressures, and technological trends to refine their tactics. Consumers face risks whether shopping online, responding to a text message, engaging on social media, or answering the phone.
Regulatory agencies such as the FTC, FBI Internet Crime Complaint Center, and Better Business Bureau continue to stress that awareness and prompt reporting are the most effective tools for reducing losses. No legitimate organization will demand payment via cryptocurrency, gift cards, or wire transfer for urgent matters.
The challenge for 2025 and beyond will be closing the gap between scam awareness and consumer behavior, ensuring that more people recognize red flags before money changes hands.
Imposter scams involve criminals posing as someone trustworthy, e.g. government officials, tech support, well-known businesses, or even a distressed family member or new love interest, to defraud victims. This broad category includes government and business impersonator scams, “grandparent” emergency scams, tech support scams, and romance scams.
Scammers contact victims, pretending to be an authority or loved one. They create urgent stories such as unpaid taxes, a computer virus, a grandchild in jail, or a romantic partner in crisis. They pressure the victim into sending money or personal information. Payment is often requested via hard-to-trace methods like bank transfers, gift cards, or crypto.
For example, a scammer might call claiming to be from the IRS and insist on immediate payment via gift cards to avoid arrest, or a fraudster may befriend someone online then ask for money via a wire transfer.
Imposter scams are the number-one reported fraud in the US right now. The FTC received 845,806 imposter scam reports in 2024, by far type. About 22% of those reports noted a monetary loss, totaling $2.95 billion lost to imposter scams.
The median individual loss was around $800. Imposter scams comprised roughly 13% of all consumer reports to the FTC Sentinel network. Scammers often convince victims to pay by bank transfer or payment app, the most common fraud payment method accounting for $2.0 billion in reported losses across scams, or by crypto ($1.42 billion).
In the past ten years, imposter scams have become incredibly common, with the number of reports growing by 300%, and a 10x increase in total reported losses.
Imposter scams top the list of consumer frauds year after year. While the number of imposter scam reports in 2024 was similar to 2023, the actual losses grew.
They caused the second-highest total losses of any category (after investment scams). Notably, scammers posing as government officials or well-known companies have grown increasingly sophisticated. The FTC warns that no real government agency will ever demand payment via wire, gift card, or crypto to “solve” a problem, and such requests are telltale signs of a scam.
Romance scams also remain common. The FBI’s Internet Crime Center logged over $672 million in losses to romance/"confidence" scams in 2024. In short, impersonation scams are pervasive across contact methods (phone, email, text, social media), and consumers must be wary of any unsolicited request for money or personal info.
Online purchase scams prey on the huge volume of e-commerce.
Scammers set up fake ecommerce sites or listings (or hack real ones) to trick shoppers with enticing deals, or advertise products on social media that never get delivered. This category also includes “negative review” extortion scams against sellers (e.g. threats to leave bad reviews unless compensated), but the bulk are consumer purchase frauds.
A typical scenario involves a consumer ordering goods online via a fake site or a fraudulent seller on a marketplace, and paying upfront. The victim either never receives the item or gets a counterfeit or inferior product. By the time they realize something is wrong, the scammer has disappeared with the payment. Some scammers also send phishing emails or social media ads posing as popular brands or “flash sales,” leading victims to fake checkout pages.
| Metric | Value | Notes / Source |
| Total FTC reports | 383,441 | FTC Consumer Sentinel 2024 |
| % of FTC reports with financial loss | 76% | High success rate for scammers |
| Total losses reported to FTC | $432 million | Total financial losses via FTC reports |
| Average loss per FTC report | $130 | Suggests mostly low-ticket item scams |
| BBB share of scam reports attributed to this category | 30% | BBB Scam Tracker 2024 |
| % of BBB reports with loss | 87.5% | Higher than FTC, shows severity in this sample |
| Rank in FTC scam frequency (2024) | #2 | Second most reported fraud type |
| Rank in BBB “Riskiest Scams” index | #4 | Other scams rising in danger |
| Total losses via social media scams (all scam types) | $1.9 billion | Social media is a dominant contact method across scams |
Online shopping scams are the second most common fraud reported. The FTC received 383,441 reports of online shopping/negative review scams in 2024, with about 76% of those reporting a monetary loss.
Total losses were around $432 million (average loss $130, reflecting many relatively small online purchases). The Better Business Bureau notes that online purchase scams made up roughly 30% of all scam reports to their Scam Tracker in 2024, by far the largest share of any
scam type. In fact, 87.5% of people who reported an online purchase scam to BBB lost money, indicating how frequently these cons succeed.
Online shopping fraud exploded during the pandemic and remains extremely common, though there are signs scammers are shifting some focus elsewhere.
The BBB’s 2024 report noted that while online purchase scams are still the most reported scam, they fell to #4 in “riskiest” ranking because other scams (like investment and romance scams) are growing in prevalence and cause higher median losses. Consumers are increasingly aware of simple purchase scams, yet fake websites and ads continue to proliferate. A notable trend is scammers moving to social media platforms. The FTC found most people who reported losing money in 2024 were contacted via social media, leading to $1.9 billion in total losses via social platforms. In short, online shopping scams aren’t going away. They’re a staple fraud, targeting shoppers with ever more convincing fake sites, product ads, and even bogus shipment problem texts (the FTC flagged “fake package delivery” texts as the top text message scam in 2024).
This category covers fraudulent employment offers and bogus business opportunities.
Scammers either pose as employers/recruiters offering fake jobs or as entrepreneurs selling a chance to “be your own boss” (pyramid schemes, fake franchises, Amazon store setup scams, etc.).
Employment scams have victims pay for phony job training, equipment, or certification, or involve the infamous “fake check” scheme where the scammer sends a counterfeit check as part of a new “job” and asks the victim to return some funds. Business opportunity scams might sell costly coaching or buy-in programs with false promises of high profits.
In job scams, fraudsters post fake job ads on legitimate job boards or social media, or send unsolicited recruitment emails/texts. The job often sounds attractive (work from home, high pay). Once the victim “gets the job,” the scammer might ask for upfront fees for training materials or equipment, or send the victim a fraudulent check as their first payment and then have them wire back part of the money, only for the check to bounce later (classic overpayment scam).
Other job scams involve personal information theft under the guise of job applications.
Business opportunity scams pitch things like investing in vending machines, e-commerce stores, crypto mining rigs, or franchising, requiring an upfront investment of hundreds or thousands of dollars. These “opportunities” are fake or vastly exaggerated.
Multilevel marketing schemes and coaching programs can also cross into scam territory when they promise unrealistic returns.
The FTC received 126,217 reports in 2024 in this category, with 36% reporting a monetary loss.
Total reported losses were about $751 million, and notably the median loss was $2,250 – among the highest median losses of any common scam. This reflects the steep upfront sums people often pay in these cons, e.g. costly startup fees or money sent back on a bogus check.
The BBB likewise found employment scams to be a major threat. In 2024 they made up 14% of BBB scam reports and had a median loss of $1,500. Employment scams were actually ranked the 2nd riskiest scam by BBB, given their high prevalence and substantial losses.
Job scams have surged dramatically in recent years. Between 2020 and 2024, the number of job scam reports nearly tripled, and reported losses skyrocketed from $90 million in 2020 to $501 million in 2024. Scammers exploited pandemic job insecurity and the work-from-home trend. Many people are enticed by the promise of remote work, which scammers use as bait.
One new variant in 2024 was the “task fraud” circulating via text, in which unsolicited texts offering quick money for simple online tasks, which eventually require the victim to pay “fees” to withdraw earnings.
Fake employment agency scams targeting military spouses and others have been a focus of FTC enforcement. On the business-opportunity side, fraudulent coaching and e-commerce schemes (often tied to Amazon or crypto) continue to crop up.
Investment scams target consumers with promises of huge returns on investments, commonly in cryptocurrency, but also in stocks, real estate, precious metals, or other ventures. This category includes classic Ponzi or pyramid schemes, “pump and dump” scams, and the modern plague of “pig butchering” crypto scams (long-con scams where fraudsters build a relationship and then convince victims to invest in fake crypto platforms).
Scammers typically approach victims via social media, online forums, dating apps, or phone calls. They often impersonate successful investors or financial advisors, or even pretend to be a new romantic interest who gradually brings up an “amazing investment opportunity.”
A key tactic is “financial grooming”: the scammer builds trust over weeks or months, then encourages the victim to put money into a supposed investment. Early on, the victim might even be allowed to withdraw a small amount to believe it’s legit. Then the scammer urges a larger investment and eventually the money is gone and the platform stops responding.
Other variations include cold calls or emails about can’t-miss stock tips, gold coins, or real estate deals.
Cryptocurrency investment schemes have been especially prevalent, with scammers convincing people to purchase crypto and transfer it to the scammer’s wallet or a fake exchange.
Investment fraud is slightly lower in report volume but number one in dollars lost. The FTC received in 2024, making it the 4th most common fraud by report count. Alarmingly, 79% of those who reported an investment-related scam lost money.
Reported losses totaled $5.7 billion in 2024, more than any other scam category and up 24% from the previous year’s already high losses. The median individual loss was about $9,200, reflecting the large sums people invest in these scams.
The FBI’s Internet Crime Complaint Center similarly reported that investment fraud (especially crypto scams) led all categories with over $6.5 billion in losses in 2024. In fact, investment/cryptocurrency scams were deemed the riskiest scam by the BBB, given their high likelihood of monetary loss (over 80% of targets lose money) and high amount lost, at an average of $5,000.
Investment scams have exploded.
Crypto investment scam losses show a steep climb from $3.8 billion in 2022, $4.6 billion in 2023, to $5.7 billion in 2024.
Scammers are capitalizing on crypto hype and economic uncertainty. “Pig butchering” scams (long-term crypto cons) became more commonplace; BBB notes these involve lengthy financial grooming, leading to devastating losses once trust is gained.
There’s also been a rise in celebrity impersonation tied to investments (fake endorsements or even deepfake videos promoting scams). According to the FTC, the majority of people who reported an investment scam first encountered it on social media, which has become a hotbed for bogus crypto investment ads and unsolicited messages.
Investment fraud is the costliest scam type. Consumers should be extremely skeptical of any investment guarantee or unsolicited advice.
High returns with low risk = high risk of fraud.
Tech support scams involve fraudsters masquerading as technical support or security experts from reputable companies, to convince victims their computer or account is compromised.
The FTC groups these under “internet services” fraud, which also covers related scams, but bogus tech support calls and pop-ups are the dominant form.
| Metric | Value | Notes / Source |
| FTC Reports (“Internet Services” category) | 118,261 | Includes tech support scams and related fraud; 2024 data from FTC Sentinel Network |
| Total Reported Losses | $164 million | FTC-reported losses for Internet Services category in 2024 |
| Median Loss per Incident | $300 | Reflects many low-dollar scams common in tech support fraud |
| Losses by Adults 60+ (tech support only) | $175 million | FTC: older adults disproportionately affected, read our article about how AI scams target the elderly |
| Likelihood of Loss (Age 60+ vs Younger) | 5× more likely | Older adults are five times more likely to report financial losses from tech support scams The Verge |
| FBI IC3 Reports (Age 60+) | 18,000 cases | Number of tech support scam reports from people aged 60+ in 2023 Federal Bureau of Investigation |
| Broader Elder Fraud Losses (All types, 2023) | Over $3.4 billion | Tech support was the most widely reported category of elder fraud |
Scammers use phone calls or alarming pop-up messages on computers to initiate contact.
For example, you might get a cold call claiming to be from Microsoft or Amazon fraud department saying your account was hacked. Or your screen might suddenly display a pop-up that states:
WARNING: Virus Detected! Call this number immediately!
If you take the bait, the fake technician will usually request remote access to your computer.
They may show fake error logs or viruses, then demand payment for a worthless software fix or warranty. In many cases, they’ll ask for payment via gift cards, wire transfer, or direct bank account debit. Some tech support scammers instead pretend to refund you for a security subscription you supposedly bought then claim they accidentally refunded too much and trick you into sending back money.
Throughout, the scam relies on creating panic about a fictitious tech problem and rushing the victim into paying for help.
Tech support scams are very common, especially among older adults.
The FTC’s Internet Services fraud category saw 118,261 reports in 2024, with losses around $164 million. The median loss was relatively low ($300), since many tech support scams involve a few hundred dollars paid for fake services. However, some victims lose much more if scammers gain access to online banking. The FBI notes that tech support fraud disproportionately affects seniors.
In 2024, Americans over 60 reported and this group lost hundreds of millions to such scams. Overall, tech support scams account for a significant share of fraud complaints; for example, in 2023 it was the number 1 fraud by number of reports for older Americans.
Tech support scams persist year after year.
In recent years scammers have started impersonating not just computer companies but also bank “fraud departments”, essentially blending tech support and imposter bank scams. For instance, the FTC highlighted a surge in “fake fraud alert” texts in 2024: people receive a text claiming suspicious bank or Amazon activity, then when they respond, they’re connected to a fake support line that convinces them their money is at risk and tricks them into transferring funds out.
Another trend is the use of remote desktop tools in which scammers walk victims through installing software like AnyDesk or TeamViewer to take control of their device. Voice over IP and caller ID spoofing allow these criminals to call from what appears to be the legitimate company’s number.
As more of daily life moves online, tech support scams remain a common threat, especially for those less familiar with computer security. The good news: awareness is spreading.
Legitimate companies will never cold-call you about a virus, and they don’t ask for payment in gift cards, red flags that consumers are learning to spot.
Prize, sweepstakes, and lottery scams tell people they’ve won a big prize (cash, car, vacation, etc.), but require them to pay a fee or taxes upfront to claim it. In reality, there is no prize.
This category includes fake lottery winnings, bogus sweepstakes, and inheritance scams claiming you’re heir to a fortune but must pay a processing fee.
The scam usually begins with an unsolicited call, email, text, or letter informing the target they’ve won a jackpot or a prize draw. Sometimes scammers even send official-looking documents or use the names of real sweepstakes organizations.
The catch: before the victim can get their winnings, they are told to pay taxes, customs fees, insurance, or other charges. Payment is requested via wire transfer, pre-paid debit card, gift cards, or even cash mailed in an envelope. Some fraudsters send the victim a fake check for part of the winnings, and instruct them to wire back a portion to cover fees. The check later bounces. Once the victim pays, the scammer either disappears or keeps stringing them along for additional payments.
No prize is delivered.
Prize and sweepstakes scams especially affect older adults.
In 2024, the FTC logged 97,350 reports in the Prizes, Sweepstakes, and Lotteries category.
About 22% of those who reported said they lost money, totaling roughly $351 million in losses. The median loss was around $1,000, indicating many victims send substantial sums in hopes of a big payout.
The FBI receives thousands of sweepstakes/lottery scam complaints annually as well. The BBB notes that Publishers Clearing House, a legitimate sweepstakes company, is one of the most impersonated organizations by scammers, showing how common PCH-style prize scams are.
In 2024, PCH impostor scams were so prevalent that the FTC issued alerts about them.
Prize scams are long-standing cons that unfortunately continue to find victims. There was a surge of sweepstakes scams targeting older people during the pandemic, and the trend has remained high.
The FBI and FTC have warned that scammers often target seniors in these schemes, sometimes maintaining ongoing relationships with victims (convincing them more fees or “one more step” is needed to get the prize.
A notable trend is the use of phone texting and social media for prize scams now, not just phone calls or mail. For instance, victims might receive a text claiming they won a gift card or lottery and need to click a link, which then phishes their info or requests a fee. Also, scammers adapt by invoking real events or impersonating well-known giveaway programs.
If someone asks you to pay fees for a prize or lottery you don’t recall entering, it’s a scam.
This category encompasses scams related to telephone and mobile services. Frauds that involve the phone system or cellular accounts as the target. It includes things like unauthorized phone bill charges, SIM card swapping attacks to steal numbers, and scammers posing as utility or phone company representatives.
It’s a broad category focusing on telephone service exploitation rather than a specific story like an imposter or prize (many imposter scams happen via phone, but here the phone service itself is the object of the scam).
| Metric | Value | Details / Source |
| Reports received (FTC) | 92,520 | Cases under “Telephone & Mobile Services” category Webster First |
| Percentage with reported loss | 39% | Proportion of these reports with monetary loss |
| Total reported losses | $56 million | Total losses for the category |
| Median loss per incident | $240 | Typical amount lost per case |
| Phishing/vishing/smishing reports (FBI IC3) | 193,000+ complaints | Most-reported internet crime type in 2024 |
| Smishing/vishing growth (2024 Q3) | Vishing ↑ 28%, Smishing ↑ 22% | APWG data on rising trends |
In the “one-ring” scam, fraudsters program auto-dialers to call people and hang up after one ring. The missed call (often from an unfamiliar foreign area code) tempts the curious victim to call back, which connects to a premium-rate number that bills hefty charges to the caller.
Phone cramming involves sneaking unauthorized charges onto people’s landline or mobile phone bills (like bogus subscriptions or toll fees), often the result of the victim being tricked via spam texts or calls into agreeing to something.
SIM swap fraud is a more sophisticated attack: scammers socially engineer a mobile carrier to transfer a victim’s phone number to a new SIM card they control, often by pretending to be the victim with stolen info. Once they control the number, they intercept SMS two-factor codes and can hijack bank, crypto, or other accounts for financial theft.
Utility/phone company impersonation are where a scammer calls claiming to be from your phone or electric company, threatening disconnection due to unpaid bills and demanding immediate payment. These overlap with imposter scams but specifically tie to services like phone/internet or electricity.
Telephone-related scams are common, though typically lower-dollar per incident.
The FTC received 92,520 reports in 2024 under the “Telephone and Mobile Services” fraud category. About 39% of those had a monetary loss, but total losses were a more modest $56 million, with a median loss of only $240. This suggests many incidents of small unauthorized charges or fees. That said, the impact can add up, and some individuals suffer big losses in SIM swap cases (e.g. if their bank account gets drained).
The FBI IC3 also captures many phishing/vishing complaints initiated by phone/text – in fact, “phishing/vishing/smishing” was the number 1 most-reported internet crime in 2024 with 193,000+ complaints.
As consumers grow wary of email scams, scammers are increasingly targeting phones. In particular, text message scams (smishing) have skyrocketed in losses. The FTC reports that in 2024 people reported $470 million lost to text message scams, five times the amount in 2020.
Common text scams last year included fake package delivery texts, phony bank fraud alerts, and wrong-number texts that evolve into crypto investment cons.
SIM swapping attacks have grown due to the value of hijacking phone numbers. The FBI and carriers have issued warnings about protecting your wireless accounts with PINs. Overall, our phones are a central target. Expect continued efforts by scammers to exploit phone communications, whether to trick you into paying bogus charges or to gain access to your financial accounts.
Vigilance with calls/texts is crucial. Don’t return one-ring calls, use carrier blocks, and verify any utility demands via official channels.
Health related scams prey on people’s medical needs or insurance. This category includes Medicare and health insurance scams, medical equipment fraud, and bogus cures or treatments.
Scammers may pretend to be from Medicare, Medicaid, or an insurance company, or offer free medical devices, or push miracle supplements. The goal is often to obtain money and/or personal information to commit insurance fraud or identity theft.
A common scenario is a phone call claiming to be from Medicare or a health plan, stating that you need to re-verify your information or that you are eligible for a new benefit.
The scammer then asks for your Medicare number or a fee. In other cases, scammers advertise cure-all pills, weight loss products, or anti-aging treatments that are ineffective or even harmful.
There are also medical billing scams, for example, in which scammers bill Medicare for services or equipment you never received. Another scheme targets people struggling with medical debt or addiction, promising help but actually charging fees without providing real assistance.
Health care scams are a significant chunk of fraud reports. The FTC recorded 78,763 reports in 2024 under Health Care-related fraud, with 51% reporting a loss. Total losses were around $80 million and median loss about $283. While not the highest-loss category, these scams typically affect vulnerable populations. The AARP and law enforcement have noted Medicare impostor scams as a continuing threat.
Health scams often follow headlines and seasons. In recent years we saw COVID related scams, and now scammers have shifted to things like unnecessary genetic testing schemes, billing Medicare thousands per test, and fraudulent durable medical equipment offers.
The Medicare card scam remains common. Even though Medicare cards no longer use Social Security numbers, scammers still call claiming “we need to issue you a new card” to get personal info.
In 2023-2024, regulators saw a rise in Medicare Advantage marketing fraud, where scammers enrolled people in plans without their consent.
Health-related fraud persists because everyone needs medical care.
Consumers, especially seniors, should remember: Medicare will not call out of the blue and doesn’t ask for money or private info by phone. Any miracle cure that requires immediate payment or claims limited supply is likely bogus.
While total losses in this category aren’t as huge as investment scams, the harm is often more than financial. It can jeopardize people’s healthcare or sensitive medical data.
Travel scams entice consumers with attractive travel deals or exploit those who own timeshares/vacation properties. This includes phony vacation packages, fraudulent vacation rental listings, free cruise scams, and timeshare resale scams.
As travel rebounded post-pandemic, scammers have been eager to cheat travelers out of deposits and fees.
Vacation package scams advertise cheap trips or all-inclusive resort stays. Victims pay upfront for a package, but later find out it was a fraud, no reservation exists or it was misrepresented (e.g. a subpar hotel far from the beach).
Vacation rental scams involve fake listings on home-sharing sites like Airbnb. Scammers steal photos of real properties and list them, collecting deposit money from would-be renters and vanishing.
Free cruise or travel prize scams overlap with prize fraud: you win a cruise but must pay fees. Victims who pay end up with nothing (or a very timeshare-like presentation at best).
Timeshare resale scams target people trying to sell their timeshare. A scammer poses as a broker or interested buyer and asks for upfront closing costs or taxes. After payment, the buyer disappears and no sale happens.
Another variant is timeshare exit scams in which companies promise to get you out of your timeshare for a hefty upfront fee, but don’t deliver.
All these scams involve paying money for travel-related promises that go unfulfilled.
Travel and timeshare scams are among the top ten frauds by volume.
The FTC received 58,347 reports in 2024 under “Travel, Vacations, and Timeshare Plans” scams. 67% of those who reported such scams lost money, indicating these scams often succeed. Total losses were around $274 million, with a median loss of $922. That median suggests people commonly lose a few hundred to a thousand dollars.
In recent FBI data, real estate/rental scams (which includes vacation rentals) accounted for tens of millions in losses as well. The timeshare resale scam has been persistent enough that the FTC and state attorneys general have pursued crackdowns, yet it still ranks high in fraud reports each year.
With travel demand surging in 2023–2024, travel scams have been on the rise.
The FTC saw increased reports of vacation rental scams as more consumers turned to online platforms for lodging. Scammers love to prey on last-minute travelers scrambling for a deal.
Airfare scams (fake airline websites or booking agents) also cropped up, where people paid for flights that were never actually booked. On the timeshare front, as many owners look to exit burdensome timeshare contracts, dishonest companies proliferated, charging large upfront fees and often leaving owners in a lurch.
Consumers should verify rentals through reputable sites, be wary of unsolicited travel offers, and never wire money or send gift cards to a supposed travel agent or timeshare buyer. Travel scams flourish during peak vacation seasons, so travelers must double-check before they pay.
These scams target people who are struggling financially, such as homeowners facing foreclosure or consumers with high debt, and promise relief for a fee.
Mortgage foreclosure rescue scams claim they can save your home from foreclosure or lower your mortgage payments. Debt relief and credit repair scams similarly offer to negotiate with creditors, settle debts, or improve credit scores. In reality, they charge upfront fees and deliver little or no help.
For mortgage scams, scammers monitor foreclosure notices or use public records to identify homeowners in distress.
They might send a mailer or call offering to act as an intermediary with the bank or to refinance the loan. They’ll ask for an upfront fee and instruct the homeowner to stop contacting their lender (or even to make mortgage payments to the scammer directly as part of a “loan modification”). The scammer then disappears, and the homeowner is left worse off, having lost money and precious time that could have been used to genuinely work out the loan.
In debt relief scams, fraudulent companies advertise on radio, online, or via telemarketing, offering to consolidate or settle credit card debt or repair credit. They charge an advance fee but often fail to negotiate anything, sometimes telling clients to cease communication with creditors, leading to defaults and lawsuits.
Student loan forgiveness scams also fall in this realm, whereby scammers promise debt forgiveness or lower payments for a fee, even though federal programs do this for free.
While not as rampant in count as some scams, mortgage/debt scams still affected tens of thousands.
The FTC received 34,159 reports in 2024 related to Mortgage Foreclosure Relief and Debt Management scams. About 21% reported losing money, with total losses around $82 million. The median loss was high at about $1,500, reflecting the substantial fees these fraudsters demand. These scams often take several thousand dollars from each victim.
The Consumer Financial Protection Bureau and FTC regularly receive complaints on these issues as well. After the 2008 housing crisis there were waves of foreclosure rescue scams, And another uptick was seen during the COVID-19 pandemic forbearance period, and as that ended, scammers pounced on homeowners exiting forbearance.
On the debt side, student loan scams spiked in recent years alongside changing loan forgiveness rules.
Debt relief and foreclosure scams tend to surge when consumers are in economic distress.
With high inflation and the resumption of student loan payments in late 2023, scammers have been actively pitching fake student loan forgiveness or refinancing programs. The FTC in 2023-2024 shut down several student loan debt relief frauds, but new ones pop up.
Foreclosure rescue scams remain a threat especially as pandemic-era foreclosure moratoriums have been lifted. Scammers know some homeowners are behind and desperate.
A trend in mortgage scams is scammers advising homeowners to transfer the property title or sign confusing foreclosure avoidance papers which actually relinquish ownership.
On the debt relief side, credit repair scams promising to scrub credit reports (by disputing accurate information or issuing credit privacy numbers”) have persisted.
Regulators have noted a slight decline in some mortgage relief scams thanks to enforcement and consumer awareness, but any time there is financial hardship broadly, these scams rebound.
Consumers should remember that it’s illegal for debt relief companies to charge upfront before they actually settle or reduce your debt, and free help is available via HUD-approved housing counselors or nonprofit credit counselors.
In summary, mortgage and debt relief scams prey on financial fears and while not the most widespread scam, they cause significant harm to those already in tough situations.
Each of these scams exploits a different vulnerability.
Whether it’s trust in authority, the convenience of online shopping, the desire for a better job, or financial desperation. Consumers should stay informed through resources like the FTC, FBI’s IC3, and BBB Scam Tracker to recognize the red flags.
The latest data shows scammers are adaptable and persistent, but awareness and skepticism are our best defense. When in doubt, don’t send money or information to someone who contacts you out of the blue. And if you encounter a scam, report it to authorities.
Your report helps fight fraud