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, D.C. – 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.

Consumers and music lovers beware: My piano-moving scams saga

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By Sally Greenberg, Chief Executive Officer, National Consumers League

The National Consumers League fights scams. We manage Fraud.org and James Perry on our staff is a world expert on scams.

I often tell the staff that the only recent scam I almost fell for was the piano moving scam.

Here’s how the scam works. Someone posts that their uncle, friend, brother, or parent has a beloved, very expensive, and fancy piano that needs a good home. It’s always a grand piano or baby grand piano, always “in excellent condition,” often “just tuned,” a valuable instrument, and in demand. It needs “a good home, someone who will love it like my relative/friend always has.” That person is “giving away the piano for free, all that is required to pay to have it moved.” A picture of the piano is often posted, and it is indeed a baby grand piano. A very authentic photo will often be included. The payment options are nonrefundable options. Another red flag.

Here’s a classic scam email:

Hope your day is going great. The ” Wurlitzer 200A Electric Piano” used to be owned and played by my husband who is now deceased and it was last tuned in November last year before he passed, I’m almost done moving my properties and I don’t think my husband will be happy if I was to sell his piano, at the same time I’m not happy seeing it around because of less storage I have in my new house, so I’m hoping to give it out to someone who is a passionate lover of the instrument.

The first lady I thought would get it didn’t show up as she promised, and I wasn’t going to leave it alone in an empty house. It’s currently going to be with the movers I employed to move my properties from my place, which they’ve moved for onward delivery, if you really don’t mind making new arrangements with the movers, I can attempt to get in touch with them to reroute it, this should not attract many charges. I’m sorry for the inconvenience but do let me know if you wish that I get through to the movers. Just so you know I’m not giving out a scrap or a waste. It’s in good shape and condition.

Regards,

John Doe

Family Piano has some great tips for recognizing the scam, including that no one gives a valuable piano away to strangers.

A few years ago, I got such an email and thought, “Oh boy, finally a great piano I can play and for free as long as I pay to have it moved!” So I called and was told that the owner would put me in touch with the movers. However, the piano was in Oklahoma. Hmmm, I thought this email came from someone in my synagogue, just down the street. I smelled something fishy, so I googled “piano scams,” and up popped hundreds of stories about people attempting to take advantage of a wonderful piano given away for free, paying moving costs to get it, and finding out the cost of moving the piano is the scam.

The Better Business Bureau has a whole site devoted to piano-moving scams here.

Here’s one example from the BBB site:

One consumer reported this experience after contacting the so-called moving company: “The customer service rep sent me a picture of packaged piano and asked me to pay the moving fee. They sent me an invoice for $843 and instructions on how to send the money through PayPal. They asked me to send them the receipt via email so they could prepare for the shipment. Three days later, they gave me a ‘trucking number.’ But on the morning the item should’ve been delivered, they sent me an email saying there was an unexpected payment owed on the piano and I would need to pay an additional $1,424… If not, they said they would return it to their warehouse.”

So, of course, that was the end of that. In fact, the offer I received exactly replicated many other consumers had received. I didn’t go through with the transaction, thankfully.

Then, just last week, someone named “George Hooper,” from “East Chevy Chase” posted this note on Nextdoor app:

“A friend of mine, who lives in McLean, VA, can’t take her piano with her. (George Steck – Paris, London, New York – baby grand piano. It was a practice piano at the Kennedy Center. In excellent condition.) She’s willing to give it away for free providing the recipient pays for moving the piano. Let me know if you want a pic of the instrument and the owner’s contact info, but please don’t respond to this extraordinarily good deal unless you are very serious about acquiring it.”

I hadn’t realized, though in my line of work I should have, that Nextdoor has become rife with scams and people are more trusting because they think everyone is a bona fide neighbor. Repair scams are especially prevalent on Nextdoor, such as described here on BuzzFeed.

And Nextdoor itself is posting this warning to users.

My immediate response to the offering was to warn users that this is a piano moving scam and not to fall for it. This George Hooper, whoever he is, became irate and said I had “poisoned” his benign email. He then listed the name of the woman with the piano and phone her number was a Northern Virginia area code. I called her and she confirmed she had the piano and I could come and look at it, but she would have to get me through security. Then I asked whether I could get my own movers and her response was, “Yes, well I have to get it tuned and I have a moving company that has moved it twice and it has legs so it’s complicated.”

It all sounded so believable, but I was still suspicious.

It occurred to me that if you’re giving away a piano for free and it is going to be moved, why would you get it tuned?

A few people said they wanted the piano and George said, “It’s gone. I’ll send a photo of the person who bought it who can play a concert for you once it has been delivered.” That’s the last we heard.

So I went online and read the thousands of piano moving scams, such as this story. The lengths they will go to!

This article points out all the red flags for piano moving scams. Be wary of them and be wary of people like “George Hooper”!

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.

Breyault and Amazon’s Alyssa Betz discuss policing fake reviews and counterfeits

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By NCL Staff

 

This week, John Breyault, our Vice President of Public Policy, Telecommunications, and Fraud, sat down with Amazon’s Director of Public Policy, Alyssa Betz. On this episode of NCL’s We Can Do This! podcast, Alyssa and John discussed fake reviews, Amazon’s product liability, and more. This has been the latest collaboration between Amazon and NCL in our partnership towards improving consumer safety and online experiences.  

Fake Reviews 

With users increasingly relying on user reviews to make buying decisions, having access to trustworthy reviews is critical for consumers. Last month, Amazon sued a group of review brokers who were allegedly paying for fake reviews at large scale. In addition to discussing the suit, Betz outlined some of the steps they have taken to ensure that user reviews are trustworthy and accurately reflect consumers’ experiences. 

Counterfeits 

Given the vast number of products sold through nearly two million sellers worldwide, Amazon has an enormous responsibility to ensure consumer safety. Alyssa discussed some of the measures Amazon has taken to reduce criminals’ ability to operate on their platform, including investing over $700 million and employing more than ten thousand people to protect its store from fraud and abuse, including counterfeit products.

To hear the full episode, including John and Alyssa’s conversation about product liability and how to spot those phony Amazon delivery phishing texts, click here. 

If you have received suspicious communications or packages claiming to be from Amazon, you can find Amazon’s support page here. 

National Consumers League applauds the Department of Justice for bringing phone scam perpetrators to justice – National Consumers League

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July 24, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC–The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, today commended the U.S. Department of Justice (DOJ) for its crackdown on impersonation scams targeting vulnerable Americans. Last week, following their arrest in 2017, 24 perpetrators of a phone scam in which fraudsters extorted money from victims by impersonating IRS agents, or employees of the U.S. Citizenship and Immigration Services were sentenced to up to 20 years in prison. The following statement is attributable to James Perry, Customer Services Coordinator and John Breyault, Vice President, Public Policy, Telecommunications, and Fraud, both of the National Consumers League:

“Imposter scams consistently rank amongst the most prevalent scams reported to NCL’s Fraud.org campaign. Last year alone, Americans lost a whopping $327 million to scammers who were impersonating individuals or government agencies. With the DOJ’s announcement that they have ended a massive operation that extorted hundreds of millions of dollars from vulnerable consumers, Americans can feel a little bit safer from a threatening phone call from a scammer. While we applaud the DOJ for this hard-won victory, we must all continue working hard to both educate consumers about this scam and redouble our efforts to put other perpetrators of this scam behind bars.”

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About the National Consumers League

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.