Online Scams & Fraud in the United States of America (USA)

The United States of America is the most targeted country by scammers. People have lost billions of dollars, with some losing their entire life savings to scammers. However, the US government continues to step up its fight against scammers, with multiple agencies making it a bit easier to report scams. 

In 2022 alone, the US lost a whopping $8.8 billion to scams and frauds, which is a record. What can people do when they fall victim to scammers? Where do you report a scammer in the US? Join us as we learn more about scams and fraud in the USA and how to protect yourself against scams.

Scam Statistics in the USA

The key statistics on online fraud in the USA, according to the Global Anti Scam Alliance.

The figures in the table will differ strongly per year as various sources have been used, pending availability.

Where Can I Report a Scam in the USA?

There are several places in the US where you can report scammers. Here are some of them: 

• Police: Report scammers to your local police department or the nearest police precinct. 
• Federal Trade Commission: The FTC offers citizens a chance to report scams in the US. As the main agency tasked with fighting scams,  Report the scam to the FTC online, or by phone at 1-877-382-4357 (9:00 AM - 8:00 PM, ET).
• The National Center for Disaster Fraud- File a complaint against any person or business for disaster fraud here through call (866) 720-5721, fax at (225) 334-4707, or online through this form.
• FBI Internet Crime Complaint Center (IC3): IC3 is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C). It accepts online Internet crime complaints from either the person who believes they were defrauded or from a third party to the complainant.
• Better Business Bureau (BBB): The BBB accepts complaints about businesses, including those related to scams. While they don't have law enforcement authority, filing a complaint with the BBB can help others be aware of potential scams.

How to Report a Scam in the USA

Reporting a scam is crucial. At the moment, only 7% of all scams are reported. As a result, only 0.05% of all cybercriminals are caught. Reporting online fraud is not only essential if you want to try and get your money back. It is also needed to help law enforcement fight scammers better.

• Gather info: Collect all information about the suspected fraud including the name, telephone, key web pages, emails, IP address, and any other relevant information. This is needed to file a complete report.
• Report the incident: Always report to your local law enforcement and note the file number they might provide for your fraud report for future reference.
• Stop the Money: Report the incident to the financial institution that transferred the money such as your bank, Paypal, credit card company, or the Internet payment service provider.
• Protect yourself: Scammers often contact you again. Sometimes with the same scam. Sometimes to help you “recover your money”. Consider changing your email address/phone number. Also, install the ScamAdviser browser extension to warn you of scams.

Our article “How and Where to Report a Scam” gives you more detail and tips on how you can best report online fraud.

Scam Victim Support in the USA

There are several places you can get help if you have fallen for a scam. Most of them are free and confidential, so feel free to reach out. They include;

• The National Elder Fraud- The go-to place for senior citizens who may have fallen victim to financial crimes such as fraud. Reach them through 833–FRAUD–11 or 833–372–8311 or through email; 
• Fight Cybercrime- They offer a peer support program that includes a 10-week program and is perfect for victims of romance scams.
• AARP Fraud Watch Network- They have teamed up with the Volunteers of America (VOA) to offer emotional support to victims of scams which also includes peer discussion groups. 

How to Check for a Scam in the USA

Of course, you can always check for scams on ScamAdviser.com. However, there are several other sources where you can check if a website is registered as a company and if it can offer financial, gambling, or other regulated services as well. Here are more places you can check for scams;

• Better Business Bureau- This is the go-to place when you are checking for scams, especially business-related scams.
• The U.S. Chamber of Commerce- They are one of the largest business organizations in the world and you can check if a business has a good reputation here
• Consumer Financial Protection Bureau (CFPB)- As the name suggests, they help keep consumers out of harm's way, especially from financial scams.
• Securities & Exchange Commission (SEC)- This is a good place to check for investment-related scams.

Anti-Scam Organizations & Consumer Authorities

Here are other organizations you need to be aware of;

• Fraud.org- A product of the National Consumers League (NCL) that helps consumers stay safe online by providing safety tips.
• NMLS Consumer Access- They have a huge database that you can use to verify a financial service provider.

Popular Scams in the USA

One-time password (OTP) bot scam

One-time password (OTP) bot scams are a sort of fraud where attackers use automated tools to trick victims into disclosing their two-factor authentication codes. The scammers usually target OTPs from financial organizations or businesses like Amazon.

The OTP Bot is a new form of harmful Telegram bot created to contact unknowing victims and trick them into disclosing their one-time passwords. The scammers then use them to access customers' bank accounts and wipe them clean.

To protect yourself, you need to do the following;

First and foremost, be suspicious of anyone who calls you and claims to be with a company you know or trust. Scammers frequently impersonate government officials or reputable companies. 

Second, avoid responding to unexpected requests for personal or financial information, especially over the phone. It's still advised to avoid clicking on any links, even if you receive an email or text message from a firm you do business with and you believe it to be authentic. Instead, check for their phone number or get in touch with them through a website you know is reliable 

Finally, resist the need to take action right now. Sincere companies will give you enough time to decide. Anyone who demands money from you or your critical personal info should be avoided. 

Scam News From the USA

• Carnegie Man Sentenced to Six and One-Half Years for $3.8 Million Paycheck Protection Program Fraud
• Small businesses spot an invoice scam posing as the Geek Squad or PayPal

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