If it feels to you like there’s more skullduggery on the Internet than there used to be – from phishing schemes to identity theft – you’re not imagining things.
Americans lost a record $6.9 billion to online scams in 2021, up from $3.5 billion in 2019, according to a study from Social Catfish, an online dating investigation service.
The amount lost has nearly doubled since the global pandemic began in 2020, “as people were forced to work, shop and date online.… Scammers have grown increasingly sophisticated to capitalize” the report said.
“This alarming trend is showing no signs of slowing down, as an unprecedented number of victims are losing their life savings, with many tragically taking their own lives. Moreover, the vast majority of victims are too humiliated to come forward.”
The number of people victimized by online scams more than doubled to 847,376 last year from 467,361 in 2019.
The Golden State Blues
In terms of geography, here are the states where victims lost the most money combined in 2021.
1. California: $1.228 billion -- $18,302 per victim.
2. Texas: $606 million -- $14,732 per victim.
3. New York: $560 million -- $19,266 per victim.
4. Florida: $529 million -- $33,338 per victim.
The Federal Trade Commission calculated that Americans lost $770 million last year from scams on social media, the report said. That’s 18 times the total of 2017.
A poll conducted by Social Catfish found that 41% of respondents think more than 50% of accounts on Facebook and Instagram are fake.
Among categories, cryptocurrency and investment scams climbed the most last year. Victims lost a record $1.6 billion in cryptocurrency scams, soaring from $246 million in 2020. And $1.4 billion was lost to investment scams, up from $336 million in 2020.
Preying on the Elderly
As you’re probably well aware, Internet scammers often focus on the elderly, as they are frequently the most trusting people.
The number of elderly citizens (aged 60 and up) who reported being snookered by a scam totaled 92,000 last year, according to the FBI’s Internet Crime Complaint Center. They reported combined losses of more than $1.7 billion, up 74% from 2020.
Social Catch offers several tips to avoid getting punked online.
· “Don’t give money to anyone you have never met in person,
· “Don’t give out personal information if you have never met in person,
· “Perform a reverse search using photos, e-mails, phone numbers, and addresses to verify if the person or entity you are speaking to online is who they say they are.
· “Five big red flags include poor grammar, refusing to video chat, being in the military, working overseas, asking to be paid in gift cards or cryptocurrency.
· “Use a password manager to create many passwords, so if one has been compromised, the rest of your accounts are protected,
· “Report any scam that you have been a part of immediately to the Federal Trade Commission, … FBI and your financial institution.”
