CFA’s latest report estimates that Americans are losing $119 billion a year to online scams. This is over seven times higher than what was reported to the FBI in 2024.
The FBI’s Internet Crime Complaint Center (IC3) Annual Report is “the primary destination for the public to report cyber-enabled crime and fraud as well as a key source for information on scams and cyber threats.” But it has a major blind spot: what about all the victims of online scams that simply don’t report? A survey from the Bureau of Justice Statistics shows that for every reported case of online crime, six go unreported.
That fact aside, the IC3 is still an insightful resource. Online scams or “cyber-enabled fraud,” as the IC3 report categorizes it, make up approximately 83% of all online crimes. In fact, investment scams, in which victims send funds to fake investment/crypto schemes, ranked as the number one crime type by losses. It is reported that Americans lost $6.6 billion to investment scams in 2024, but CFA estimates the true cost to be at least $46.6 billion due in large part to losses not reported by consumers.
What’s in a Name?
The IC3 report categorizes investment scams as “cyber-enabled fraud,” but they are not technically “fraud”: they are scams. The Electronic Fund Transfer Act (EFTA) defines fraud and protects consumers when funds are taken from a consumer account without their consent. However, they receive no equivalent protection when they are deceived or coerced into initiating a transfer themselves. Since the account holder technically “authorized” the payment, these transactions are classified as “scams.” Under current law, scams fall outside of existing consumer protections. To the extent scam victims receive relief, it is due to voluntary response by providers, not by the force of law.
What Can Be Done?
A good place to start is to rein in the platforms that enable these scams. The Global Anti-Scam Alliance found that 81% of all scams attempted in the US in 2025 occurred on platforms with a direct messaging function. The Better Business Bureau’s 2024 Scam Tracker Risk Report identifies Facebook, Instagram, and WhatsApp – all Meta platforms – as the top three online platforms most associated with scams.
Will Congress Act?
Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) introduced bipartisan legislation to crack down on predatory online scams called the Safeguarding Consumers from Advertising Misconduct (SCAM) Act
“Social media has become a prime hunting ground for scammers to swindle Americans out of nearly $119 billion a year. This report makes it clear that accountability is long overdue,” said U.S. Senator Ruben Gallego. “If companies are making money by pushing ads onto users’ feeds, they have a responsibility to make sure those ads aren’t fraudulent. My SCAM Act would hold Big Tech accountable for stopping scam ads on their platforms and help protect consumers’ hard-earned money.”
Representatives Dan Meuser (R-PA) and Lou Correa (D-CA) introduced bipartisan companion legislation in the House.
“Financial scams are widespread, destructive, and unfortunately becoming more and more common due to advancements in AI. In order to protect online consumers from these devastating crimes, I introduced the SCAM Act,” said U.S. Representative Lou Correa. “The Consumer Federation of America’s new report does an excellent job highlighting the dangers of scams, which are becoming increasingly sophisticated and often target vulnerable populations. This report shows the enormity of the crisis and stresses the urgency for Congress to implement more safeguards for Americans.”
Will President Trump Help?
It is clear from the statistics that if the Administration wants to fight fraud, they must also fight scams. With the rising cost of living, the last thing people need is to be tricked by deceptive ads on social media into sending their hard-earned money to criminals. The Administration has said it wants to focus on affordability, but in reality, it has slashed investment in consumer protection agencies by 10% at the Federal Trade Commission (FTC) and over 50% at the Consumer Financial Protection Bureau (CFPB). The U.S. economy is in a precarious position, with rising risks and mounting pressure on working families. If this Administration really wants to make America more affordable, one way is to stop scams.