NCL releases Top Ten Scams Report of 2024

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Sweepstakes and prizes are #1, while cryptocurrency scams are most expensive

Media Contact – Lisa McDonald, Vice President of Communications, (202) 207-2829

Washington, DC – Today, the National Consumers League (NCL) announces our Top Ten Scams report of 2024. The number one scam of 2024 was Prizes, Sweepstakes, and Free Gifting accounting for 38% of reported scams. However, the most expensive scam causing the most amount of financial loss was Cryptocurrency and Investment schemes. The reported median loss for cryptocurrency scams was $30,000, up from $20,000 in 2023.

2024 is the second year in a row where Phishing/Spoofing and Internet Merchandise cams joined sweepstakes scams to round out the top three fraud categories.

Scammers look to get victims to send them money via methods that lack strong consumer protections. For scams involving a financial loss, Bank Account Debit and Wire Transfer made up 33.1% and 12.9% of complaints respectively.

“Every year, complaints to Fraud.org paint a heartbreaking picture,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “It is apparent the problem of fraud is not going away on its own. Policymakers at all levels should urgently address this issue and take comprehensive action to combat this epidemic.”

The top ten scam categories reported to Fraud.org in 2024 were:

  1. Prizes/Sweepstakes/Free Gifts: 38.27%
  2. Phishing/Spoofing: 18.83%
  3. Internet: General Merchandise: 17.04%
  4. Investments: Other (incl. cryptocurrency): 6.46%
  5. Fake Check Scams: 3.83%
  6. Advance Fee Loans, Credit Arrangers: 2.91%
  7. Friendship & Sweetheart Swindles: 2.04%
  8. Family/ Friend Imposter: 1.64%
  9. Internet: Information/Adult Services: 0.72%
  10. Misc. Other: 0.60%

*Other complaint categories (e.g. scholarship/grant scams, counterfeit drugs, work-at-home scams) outside of the top ten categories make up the remaining 5.69% of complaints.

“Reporting fraud is an essential step for victims,” said NCL Consumer Services Manager James Perry. “When an individual reaches out, we can connect them with the proper resources and begin to walk them through the recovery process. The information they share also helps inform decisions around fighting these scams.”

Online scams can affect anyone, especially in the ever-changing digital world we live in today.

The 2024 Top Ten Scams Report is available here

The National Consumers League Top Ten Scams report analyzed 2,526 complaints submitted by consumers to NCL’s Fraud.org campaign in 2024. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases.

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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 nclnet.org.

NCL urges Congressional action at hearing on Zelle and fraud

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May 21, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, D.C. – The National Consumers League (NCL) today urged Congress to move swiftly to enact new laws that will put a significant dent in the billions of dollars in fraud that occur annually via peer-to-peer (P2P) payment apps. In testimony before the Senate’s Permanent Subcommittee on Investigations, NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault described fraud as reaching “crisis levels,” with estimates of annual losses to fraud exceeding $137 billion.  

“The same factors that have made P2P services popular with consumers – access via mobile device and near-instantaneous payment – have also attracted a tsunami of scammers,” said NCL Vice President John Breyault. “Unfortunately for consumers, the P2P services have failed to keep pace with this threat.” 

Breyault’s testimony focused on the unique role that P2P apps play in this fraud and the lack of consumer protections that result in the cost of scams falling on individual consumers. 

“Relying on consumers to accurately spot and resist fraudulent schemes run by sophisticated, professional criminals is unlikely to yield a more secure P2P payments system,” said Breyault. “We urge Congress and the Consumer Financial Protection Bureau to adopt regulations that put the onus for securing P2P platforms like Zelle where it belongs – on the banks and platforms themselves.” 

This is the second time this year NCL Vice President John Breyault has appeared before the Senate to advocate for stronger protections against fraud in our financial system. His full testimony can be found here.

Additional reading:

  • NCL VP testifies before Senate Banking Committee on the need for better protections against scams 
  • NCL releases Top Ten Scams report for 2023 fraud trends 

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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 nclnet.org.

Top Ten Scams report: Explosion of crypto reports raises alarm 

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February 6, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

WASHINGTON, D.C. — Cryptocurrency is being used in an increasing number of scams, leading to some of the highest median losses every reported to the National Consumers League (NCL). In its annual 2023 Top Ten Scams report, NCL found that the percentage of crypto-linked scam reports more than doubled year-over-year, making up almost 1-in-10 complaints received. The report, published annually, analyzed more than 2,700 consumer fraud complaints filed with NCL’s Fraud.org campaign last year.  

The median loss for reported investment frauds, including cryptocurrency, ballooned to $20,000. Just two years prior, the number was $1,750. The complaints in this category frequently described schemes where victims were encouraged to put money into cryptocurrencies and cryptocurrency-linked investments that later turned out to be fraudulent.  

“Year after year, complaints to Fraud.org paint a heartbreaking picture,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “It is clear that the problem of fraud is not going away on its own. It is past time for policymakers at every level to take this issue seriously and do everything they can to crackdown on this epidemic.” 

A record year for natural disasters appears to have been reflected in the numbers as well: reports of fake charity scams were up almost 200% compared to 2022. These complaints often involve fraudsters impersonating non-profit aid groups, particularly following crises like the wildfires in Maui. 

The top ten scam categories reported to Fraud.org in 2023 were:  

  1. Prizes/Sweepstakes/Free Gifts  
  2. Internet: General Merchandise  
  3. Phishing/Spoofing  
  4. Investments: Other (incl. cryptocurrency) 
  5. Fake Check Scams 
  6. Advance Fee Loans, Credit Arrangers  
  7. Friendship & Sweetheart Swindles  
  8. Charitable Solicitations 
  9. Family/Friend Imposter  
  10. Home Repair 

“Reporting fraud is an important step for victims,” said NCL Consumer Services Coordinator James Perry. “When someone reaches out, we can connect them with the right resources and begin to walk them through the recovery process. The information they share also helps inform decisions around fighting these scams.” 

Scammers contacting victims through the internet and phone calls initiated three out of four fraud incidents, with the internet replacing phone calls as the number one method of contact in 2023. The Top Ten Scams report also showed a worrying trend in scams targeting young consumers. Compared to 2022, complaints from consumers aged 18-25 increased by 13.12%. 

“The prevalence of scams online should worry everyone, especially as more of daily life becomes virtual,” said NCL Public Policy Manager Eden Iscil. “This is particularly troubling for younger individuals who we know statistically are more likely to become victims of fraud than any other age group. As consumers now grow up online, this problem will only get worse if we don’t dedicate resources to safeguarding our most vulnerable.”  

To view the full 2023 Top Ten Scams report, click here.  

Methodology  

The National Consumers League Top Ten Scams report analyzed 2,756 complaints submitted by consumers to NCL’s Fraud.org campaign in 2023. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases. 

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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 nclnet.org.

NCL testifies before Senate, urges stronger protections against scams

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February 1, 2024

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – Highlighting the ongoing epidemic of fraud across the country, NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault testified today before the Senate Committee on Banking, Housing, and Urban Affairs. Breyault advocated for stronger consumer protections alongside Carla Sanchez-Adams, a senior attorney at the National Consumer Law Center.

“When NCL last testified before this committee in 2021, we warned that peer-to-peer payment platforms such as Zelle, Venmo, Cash App, and PayPal had become ‘payment methods of choice for scammers.’ Unfortunately, the problem has only worsened since then,” Breyault told the committee. “No amount of consumer education, better disclosure, or ‘friction’ put into payment flows will solve this problem alone. The payment platforms where fraud occurs must have a bigger financial incentive to stop scams before they happen.”

The Federal Trade Commission, the primary federal agency for reporting fraud, continues to receive record numbers of complaints, with 5.4 million reports in 2022. Since the last time Vice President Breyault appeared before the Senate Banking Committee, median losses to scams nearly doubled, from $374 per incident to $650. The emergence of new and unregulated technologies, such as peer-to-peer payment apps and cryptocurrencies, has also facilitated staggering losses. Crypto-linked fraud losses exceeded $1 billion annually in 2022 and 2023.

“We are not winning the fight against fraud,” said Breyault. “We need Congress to Act.”

Breyault urged the Banking Committee to swiftly pass bills like the Protecting Consumers From Payment Scams Act and Senator Elizabeth Warrens (D-MA) Digital Asset Anti-Money Laundering Act of 2023 to crack down on scams targeting peer-to-peer payment apps and cryptocurrencies, respectively.

This was Breyault’s fourth time speaking before Congress on policy solutions to address the incessant scams targeting Americans daily. Breyault’s full written testimony can be found here.

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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 nclnet.org.

NCL statement on DOT’s fine against Southwest Airlines

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December 18, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

Washington, DC – The National Consumers League (NCL) today applauded the Department of Transportation’s (DOT) landmark enforcement action against Southwest Airlines over the company’s operational meltdown during the 2022 holidays.

The following statement is attributable to John Breyault, NCL’s Vice President of Public Policy, Telecommunications, and Fraud:

“Today’s DOT action sends an unambiguous signal to the airline industry that passengers’ time is valuable and there will be consequences for carriers that waste it. The unprecedented $140 million fine demonstrates that consumer protection remains a top priority under Secretary Buttigieg’s leadership. However, enforcement is just one tool in DOT’s toolbox. While we welcome today’s announcement, passengers should be protected regardless of which airline they choose to fly. This will only happen if DOT enacts strong rules to ensure that consumers are compensated when flights are delayed or cancelled, that refunds are processed without delay, and that unfair and deceptive practices and unfair methods of competition are policed vigorously. We look forward to continuing to work with DOT and the industry to make this a reality.”

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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 nclnet.org.

National Consumers League praises FTC’s multilingual fraud reporting announcement

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November 8, 2023

Media contact: National Consumers League – Melody Merin, melodym@nclnet.org, 202-207-2831

The National Consumers League (NCL), America’s oldest consumer advocacy organization today praised the Federal Trade Commission’s (FTC) announcement that consumers can now file fraud and identity complaints in their preferred languages. NCL is the home of the Fraud.org campaign, which is a long-time contributor of complaint data to the FTC’s Consumer Sentinel Network as well as being an ally in the Commission’s efforts to educate consumers about frauds.

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications, and Fraud, John Breyault:

“All consumers are at risk of fraud, regardless of the language they speak. Making it easier for fraud victims to report these crimes in their own language to the FTC is a critically important step in the fight against scams. We are thrilled with today’s announcement and look forward to continuing to work with the Commission and our allies in the anti-fraud community to protect consumers from criminal scammers.”

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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 nclnet.org.

Top Ten Scams Report: Consumers reported massive uptick in crypto-linked fraud losses in 2022

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February 6, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. — Reports of scams tied to cryptocurrencies drove a significant increase in median losses in 2022, according to the National Consumers League’s annual Top Ten Scams report. The report, published annually, analyzed more than 3,500 consumer fraud complaints filed with NCL’s Fraud.org campaign last year. 

The report found that the median loss for investment frauds reported to Fraud.org was $18,700, compared to $1,750 in 2021. The complaints in this category frequently described schemes where victims were encouraged to put money into cryptocurrencies and cryptocurrency-linked investments that later turned out to be fraudulent. Such scams drove an increase in the median loss for all frauds reported to Fraud.org to $950, an eleven-year high. 

“Both median losses and the share of incidents reporting losses are up,” said John Breyault, NCL vice president of public policy, telecommunications, and fraud and the director of the Fraud.org campaign. “New technologies seem to be driving these trends, from crypto-related schemes to scammers using new technology to move victims’ money around.” 

Bank account debit, which includes peer-to-peer platforms like Zelle and Venmo, was the second most frequently mentioned way that victims reported sending money to fraudsters in 2022 (27.17% of complaints that included a loss). Compare this to 2021 when bank account debit was mentioned in 11.2% of complaints that included a loss. 

The top ten scam categories reported to Fraud.org in 2022 were: 

  1. Prizes/Sweepstakes/Free Gifts 
  2. Internet: General Merchandise 
  3. Phishing/Spoofing 
  4. Fake Check Scams 
  5. Investments: Other (incl. cryptocurrency) 
  6. Advance Fee Loans, Credit Arrangers 
  7. Friendship & Sweetheart Swindles 
  8. Family/ Friend Imposter 
  9. Computers: Equipment/Software 
  10. Scholarships/Grants 

“While we’re collecting data to better inform our efforts to combat fraud, we’re also aiding victims and connecting them with resources,” said NCL Consumer Services Coordinator James Perry. “It’s important to remember the person behind each report.” 

Notably, the share of reports involving romance scams declined by 31%. This trend may be attributable to last year’s significant media coverage of this type of fraud following the success of fraud-focused shows like “The Tinder Swindler” and “Inventing Anna.”  

“In real time, we are seeing the benefits of a national discussion around these types of fraud” said NCL Public Policy Manager Eden Iscil. “Having an open conversation about something as sensitive as romance scams helps to destigmatize the issue, provide space for victims to seek help, and put pressure on digital platforms to prevent misconduct.” 

To view the full 2023 Top Ten Scams report, click here. 

Methodology 

The National Consumers League Top Ten Scams report analyzed 3,503 complaints submitted by consumers to NCL’s Fraud.org campaign in 2022. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases. 

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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 https://nclnet.org.

NCL urges FTC to prohibit user review manipulation

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January 10, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. – The National Consumers League (NCL) this week filed comments in support of a Federal Trade Commission (FTC) regulation to ensure the reliability of user reviews. In its comments, NCL urged the FTC to prohibit user reviews from individuals who did not purchase a product or service (or are misrepresenting their experiences with a product or service) and to prohibit sellers from manipulating consumer reviews. In addition, the League advocated for the Commission to require hosts of user reviews to implement measures to protect review integrity, such as requiring purchase verification.  

“Consumers frequently cite user reviews as a key factor when deciding what to buy,” said John Breyault, NCL Vice President of Public Policy, Telecommunications and Fraud. “As a result, fake endorsements steer billions of dollars each year towards certain products and away from competitors. The impacts range from buyers receiving goods of poorer quality than expected to serious safety risks.” 

NCL also encouraged the FTC to prohibit the commercial exploitation of social media engagement metrics, such as buying and selling likes, comments, or shares. Such practices can be used to boost fraudulent product reviews and endorsements, allowing bad actors to manipulate social media platforms to broaden their reach. 

“Right now, it is extremely easy to spend a few dollars and receive hundreds of likes, followers, or other signals that a product or service is of high quality,” said Eden Iscil, NCL Public Policy Manager. “By jumpstarting a post with purchased engagement, the content has a greater chance of reaching a real audience—and being believed by them. Such practices not only affect consumers making purchasing decisions but can also be used to spread other types of misinformation.” 

The FTC initiated this regulatory process following NCL’s request for greater federal enforcement against organized user review fraud, which can be found here.  

NCL’s full comments to the FTC can be found here. 

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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 https://nclnet.org.

National Consumers League names Robin Strongin to lead Health Policy

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December 14, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON DC. –  National Consumers League (NCL)-the nation’s oldest consumer advocacy organization, has named Robin Strongin Senior Director, Health Policy, beginning January 4, 2023.  Robin will oversee NCL’s robust health care portfolio.

An accomplished public affairs expert with decades of experience working in Washington, D.C., Robin has worked with and for federal and state governments, regulatory agencies, the White House, Congress, think tanks, nonprofit organizations, corporations, start-ups, coalitions, and trade associations. Robin served as a Presidential Management Intern and worked in the Office of Legislation and Policy in the Health Care Financing Administration (now the Centers for Medicare and Medicaid Services), the Prospective Payment Assessment Commission (now the Medicare Payment Advisory Commission) in addition to serving in the Office of Congressman James J. Florio (D-NJ).  Robin spent a decade as a senior research associate at George Washington University’s National Health Policy Forum.

Robin ran Amplify Public Affairs, LLC and launched an award-winning Disruptive Women in Health Care blog®; she also served on the following boards: the Institute for Music and Neurologic Function (founded by Dr. Oliver Sacks); AcademyHealth’s Translation and Dissemination Institute Advisory Committee; Kaiser Permanente’s Institute for Health Policy; Older Women’s League; Physician-Parent Caregivers; and The Hill newspaper Publisher’s Advisory Board. In October 2015, Robin was named to the National Alzheimer’s Scientific, Patient and Caregiver Advisory Council of the PCORI-funded Alzheimer’s & Dementia Patient/Caregiver-Powered Research Network (AD-PCPRN); and named a Woman of Impact (https://www.womenofimpact.org) in December 2015.

“The National Consumers League is a powerful force in leading and advocating for consumers’ health and safety,” said Strongin. “I’m deeply honored to be part of a team dedicated to this critical mission and I look forward to working with Sally Greenberg, the board, and the entire team to achieve our vision.”

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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 https://nclnet.org.

National Consumers League adds Identity Theft Resource Center ‘Live-Chat’ to Fraud.org to help identity crime victims

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December 13, 2022

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

WASHINGTON, D.C. – Today, the National Consumers League (NCL), the nation’s oldest consumer advocacy organization, and the Identity Theft Resource Center® (ITRC), a nationally recognized nonprofit organization established to support victims of identity crime, are partnering up to help victims of identity crimes.

NCL integrated the ITRC’s live-chat function into fraud.org, a project of the NCL to give consumers the information they need to avoid becoming victims of telemarketing and internet fraud. The ITRC live-chat function on fraud.org will help assist victims of identity crimes related to data breaches, identity theft and identity fraud. It will also provide people with another resource during the holiday shopping season when there is an increased risk of identity crimes. According to Forbes, Adobe predicts a 2.5 percent growth in online sales from November 1-December 31, when identity criminals may look to take advantage of increased online activity.

The ITRC’s staff of identity advisors provides preventative information and customized plans to address all types of identity concerns. ITRC advisors assist victims live during business hours or through direct follow-up when contacted after hours and on weekends.

“NCL is always looking for new ways to reach consumers and better protect them from fraud,” said John Breyault, Vice President of Public Policy, Telecommunications, and Fraud at NCL. “By increasing the number of options that individuals can use to contact us, we can help a greater number of people. Thanks to ITRC, consumers with differing accessibility needs, levels of phone service, and communication preferences will find it easier to get in touch with a fraud expert.”

“The NCL and ITRC have a long history of mutual respect and shared commitment to victims of identity crimes,” said Eva Velasquez, President and CEO of the Identity Theft Resource Center. “Adding the NCL to the group of organizations and government agencies using live-chat to help victims continues our fight for small businesses and consumers to protect them from identity criminals. We believe giving more people direct access to our live identity experts – at no cost – will help prevent identity fraud and provide the support needed to recover from these crimes.”

NCL is the third organization the ITRC has partnered with to integrate the ITRC live-chat function on its website. Earlier in 2022, the ITRC embedded its chat into the San Diego District Attorney Office and New Mexico Office of the Attorney General websites.

Since the ITRC’s chat function was launched on fraud.org, three (3) percent of the ITRC’s total cases have come from its website. Implementing the ITRC’s live-chat function provides victims access to support when it is convenient and in a manner people often prefer – a live-chat rather than a phone call. ITRC advisors will:

  • Ask what happened
  • Ask a series of questions to help determine the scope of the problem
  • Provide a victim or curious consumer with a detailed, custom plan of action steps to take

Currently, most ITRC cases from fraud.org involve scams, primarily lottery and prize scams (mostly about criminals pretending to be Publisher’s Clearing House representatives) and existing account takeover of a bank or credit card account.

The ITRC is committed to providing access to everyone seeking help. Read about the Center’s accessibility initiative here. Anyone can contact an advisor by visiting www.idtheftcenter.org or calling toll-free at 888.400.5530.

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 https://nclnet.org.

About the Identity Theft Resource Center  

Founded in 1999, the Identity Theft Resource Center® (ITRC) is a national nonprofit organization established to empower and guide consumers, victims, business and government to minimize risk and mitigate the impact of identity compromise and crime. Through public and private support, the ITRC provides no-cost victim assistance and consumer education through its website live-chat idtheftcenter.org  and toll-free phone number 888.400.5530. The ITRC also equips consumers and businesses with information about recent data breaches through its data breach tracking tool, notified. The ITRC offers help to specific populations, including the deaf/hard of hearing and blind/low vision communities.