Americans lost a staggering $12.5 billion to online fraud in 2023, according to the FBI’s annual Internet Crime Complaint Center (IC3) report. This alarming figure represents a 22% increase compared to 2022, highlighting the growing threat of cybercrime in the United States.
Investment scams topped the list of most costly frauds, with reported losses exceeding $4.57 billion. This surge is partly attributed to “pig butchering” scams, where criminals build trust with victims online before luring them into fake cryptocurrency platforms. Business Email Compromise (BEC) scams also took a significant bite, costing Americans $2.9 billion. These scams involve impersonating legitimate businesses to trick victims into sending money or sensitive data.
The report reveals a worrying trend in ransomware attacks as well. While reported losses remained relatively low at $59.6 million, experts suspect the actual figure is much higher due to underreporting. Additionally, the number of ransomware complaints jumped by a concerning 74% compared to 2022.
The FBI also identified a troubling pattern of older adults being targeted disproportionately. Nearly 40% of complainants were over 60 years old, suffering over 58% of the total losses. This emphasizes the need for increased awareness campaigns and educational resources to empower this vulnerable population to protect themselves online.
The IC3 report serves as a stark reminder to remain vigilant and exercise caution online. Implementing strong passwords, enabling two-factor authentication, and being wary of unsolicited investment opportunities or requests for personal information are crucial steps in protecting yourself from cybercrime. By staying informed and taking preventative measures, individuals and businesses can help mitigate the risks of online fraud.
