Fighting back: How NCL is leading the charge against America’s $10 billion fraud crisis

Consumer fraud, defined as a deceptive practice that causes financial or other losses to consumers, encompasses a wide range of scams that can have devastating consequences on its victims. In 2023 alone, Americans were scammed out of a  staggering $10 billion –nearly triple the losses from  2020, according to the Federal Trade Commission (FTC). And that was just the reported losses. A 2023 FTC report estimated that true annual fraud losses were $137.4 billion. This escalation is fueled by the growing proliferation of digital platforms and payment systems, offering fertile ground for fraudsters to exploit unsuspecting consumers.

NCL’s 2023 Top Ten Scams report revealed explosive growth in cryptocurrency-linked scams in 2023, with complaints more than doubling year-over-year and victims reporting median losses of $20,000. Overall, in 2023, the FTC received 2.6 million fraud reports, with impostor scams being the most prevalent, costing Americans $2.7 billion in losses. It also found that investment scams, while less common, resulted in the highest median losses at $7,700 per victim. Simply put, the issue is pervasive and worsening.

NCL is combatting this escalating problem through multifaceted means, including aggressive advocacy, research, and empowering consumers to report supporting fraud. NCL’s Fraud.org campaign shares consumer complaint data with over 200 law enforcement and consumer protection agencies, helps to spot trends and build cases against scammers, and provides consumers with valuable educational information. In May of 2024, NCL Vice President John Breyault delivered testimony before the Senate, urging Congress to enact new laws to curb fraud in peer-to-peer payment apps. In September, Breyault appeared before the Senate again, this time advocating for fraud protections around the multi-billion-dollar travel rewards industry.

NCL also praised the FTC’s recent initiative, which made it easier for consumers to file fraud complaints in their preferred language and made reporting more accessible. With underreporting still a significant challenge, NCL urges every consumer to report fraud as part of a united effort to defeat this growing threat.

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 About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.