FTC Data Spotlight Blog

Paying to get paid: gamified job scams drive record losses bjames@ftc.gov December 11, 2024 | 10:00AM Paying to get paid: gamified job scams drive record losses A job you truly enjoy is a good thing, but if the work feels more like an online game than an actual job, you can bet it’s a scam. Reported losses to job scams increased more than threefold from 2020 to 2023 and, in just the first half of 2024, topped $220 million. [1] Driving this trend are skyrocketing reports about gamified job scams, often called task scams. About 20,000 people reported these scams in the first half of the year, compared to about 5,000 in all of 2023. [2] Since the vast majority of frauds are not reported, this likely reflects only a fraction of the actual harm.[3]   Image Task scams ask you to do simple repetitive tasks such as liking videos or rating product images. Your “job” is to complete these tasks in an app or online platform that creates the illusion you’re racking up commissions with every click. Tasks are often assigned in sets of forty, with the promise of leveling up once you complete your set. You may even get a so-called double task that earns a bigger commission. Many people report getting small payouts at first, which give them greater trust in the system. So how do these scammers steal your money while making you think you’re earning money? At some point, they’ll say you have to make a deposit to complete your next set of tasks and get your supposed earnings out of the app. You “charge up” your account to avoid losing what the app shows you’ve earned, believing you’ll get all the money you deposited back, along with your commission, once you complete the set. But no matter what the system says you’ve earned, you didn’t. That money isn’t real. And if you deposit money, you won’t get it back. Task scams work in many different ways, but they have some common elements. First, the scam typically starts with an unexpected text or WhatsApp message offering online work but no specifics. Second, they say you’ll be completing “tasks” and will often use buzzwords like “product boosting” or “app optimization.” And third, they’re designed to hook you – these scammers know it can be hard to cut your losses, and the apps they use make those fake earnings seem very real. Sometimes they even go a step further to try to keep you in the game: if you hesitate to deposit money, scammers will often invite you to a group chat where newcomers hear supposed success stories from (fake) experienced workers.Reports show crypto is the currency of choice for these scams. These payments have helped drive skyrocketing cryptocurrency losses to job scams generally – about $41 million in the first half of 2024, compared to about $21 million in all of 2023. People now report losing far more money to job scams using cryptocurrency than any other method of payment.So how can you spot and avoid these scams?Ignore generic and unexpected texts or WhatsApp messages about jobs. Real employers will never contact you that way.Never pay anyone to get paid. Someone telling you to pay money to get the money you’ve supposedly earned is a sure sign of a scam. No legit business would ever do that.Don’t trust anyone who says they’ll pay you to rate or “like” things online. That’s illegal and no honest company will do it. [4]To learn more about spotting and avoiding scams, visit ftc.gov/scams. Report scams to the FTC at ReportFraud.ftc.gov.  [1] These figures are based on fraud reports to the FTC’s Consumer Sentinel Network classified as job scams and employment agencies. Reported dollar losses by year are as follows: $223M (2024 through June), $286M (2023), $179M (2022), $131M (2021), $90M (2020). These figures are available with quarterly updates on FTC’s Tableau Public dashboard.[2] Task scam figures here and throughout this Spotlight are estimates based on hand-coding a random sample of 500 job scam reports for each year (2,500 total). Reports that did not included a narrative describing the consumer’s experience were excluded. The share of reports identified as task scams for each year was then multiplied by the total number of job scam reports in that respective year to estimate the totals for each year. In the first half of 2024, 38.8% were identified as task scams, compared to 5.6% (2023), 1.6% (2022), and .6% (2021). No task scams were identified in the sample of 2020 reports.[3] See Anderson, K. B., To Whom Do Victims of Mass-Market Consumer Fraud Complain? at 1 (May 2021) (study showed only 4.8% of people who experienced mass-market consumer fraud complained to a Better Business Bureau or a government entity).[4] See FTC Press Release, Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials (August 14, 2024). 

Impersonation scams: not what they used to be bjames@ftc.gov April 1, 2024 | 8:31AM Impersonation scams: not what they used to be Scams that impersonate well-known businesses and government agencies are consistently among the top frauds reported to the FTC’s Consumer Sentinel Network.[1] In 2023, data from the FTC alone show more than 330,000 reports of business impersonation scams and nearly 160,000 reports of government impersonation scams.[2] That amounts to nearly half the frauds reported directly to the agency.[3] Combined, reported losses to these impersonation scams topped $1.1 billion for the year, more than three times what consumers reported in 2020.[4] Image While these types of scams aren’t new, reports tell us scammers have switched things up. Comparing 2020 to 2023, for example, reports of scams starting with a phone call have plummeted, while reports of scams starting with a text or email have increased. In that same period, people reported skyrocketing losses through bank transfer[5] and cryptocurrency. And reports show an increasingly blurred line between business and government impersonation scams: many scammers impersonate more than one organization in a single scam – for example, a fake Amazon employee might transfer you to a fake bank or even a fake FBI or FTC employee for fake help.[6]While these scams come in many different forms, the top five described below account for nearly half of 2023 reports.[7]1. Copycat account security alertsTopping the list are messages about supposed suspicious activity or unauthorized charges. The message might say it’s from Amazon, alerting you that someone’s ordered a big-ticket item using your account. Or it might look like it’s your bank, asking you to verify a charge. These messages often include a phone number to call or ask you to text back YES or NO. Though scammers are convincing, it’s not really Amazon or your bank. It’s a scammer who says they can help fix the problem, which is also fake. What they tell you to do is really designed to steal your money. Often, this means transferring funds or loading cash into a Bitcoin ATM to “protect” it.   2. Phony subscription renewalsUp next are scams that look like routine email notices that an account you never opened is about to auto-renew to the tune of hundreds of dollars. Often, they say it’s an account with Geek Squad.[8] Of course, it’s not really Geek Squad; it’s a scammer. If you call to sort it out, they’ll say they have to connect to your computer to process your “refund.” Once in, they make it look like too much money was refunded. They demand that you return the difference, often by buying gift cards and giving them the numbers on the back.3. Fake giveaways, discounts, or money to claimA message about a giveaway, discount, or free money may seem to come from a company you know – say, discounts from your internet provider, a giveaway from a big retailer, or sweepstakes winnings from Publishers Clearing House. Sometimes the so-called offer is about government money you can supposedly claim. These stories are all just another set-up to steal your money. The story ends with you buying gift cards or sending money to claim the deal, gift, or sweepstakes. And that’s always a sign of a scam. Image 4. Bogus problems with the lawScammers pretending to be government agents say your identity has been used to commit a serious crime – often, they claim, money laundering or drug smuggling. They then offer to help you fix the supposed problem, which always involves them telling you to move money or put it on gift cards. For example, many people reported being told to load cash into Bitcoin ATMs to supposedly protect their funds during a so-called investigation. The scammers even called these ATMs “safety lockers.” But this is another scam, and every part of the story is a lie. Money you move is money they steal.5. Made-up package delivery problemsMessages pretending to be from the U.S. Postal Service, UPS, or FedEx say there’s a problem with a delivery. They include a link to a website that looks real – but isn’t. Some ask for your bank account details. Others ask you to pay a small “redelivery fee,” but if you do, the scammer now has your credit card information. And, reports tell us, these scammers quickly start racking up fraudulent charges.All these scams have tactics that scammers hope give them an advantage. First, their messages look a lot like the messages real companies send: emails or texts about special deals and security alerts on your accounts. Second, they play on your emotions: if you’re worried about a problem or excited about a free gift, it can be harder to spot signs of a scam. Finally, they reframe their demands for money to avoid setting off alarm bells: people who’d never send money to a stranger have emptied their accounts, believing they were “protecting” their funds.So how can you spot and avoid these scams?Never click on links or respond to unexpected messages. If you think a story might be legit, contact the company or agency using a phone number or website you know is real. Don’t use the information in the message.Don’t believe anyone who says you need to buy gift cards, use a Bitcoin ATM, or move money to protect it or fix a problem. Real businesses and government agencies will never do that – and anyone who asks is a scammer.Slow down. Scammers want to rush you, so, again: stop and check it out. Before you do anything else, talk with someone you trust. Anyone who’s rushing you into paying or giving information is almost certainly a scammer.Learn more about impersonator scams. To spot and avoid scams – and learn how to recover money if you paid a scammer – visit ftc.gov/scams. Report scams to the FTC at ReportFraud.ftc.gov.[1] In 2023, business imposter scams were the most reported fraud subcategory, and government imposter scams were the third most reported. These fraud subcategories also ranked among the top three most reported frauds in 2020, 2021, and 2022. This excludes reports categorized as unspecified.[2] This figure and figures throughout this Spotlight are based on reports directly to the FTC. The combined number of business imposter and government imposter reports by year are as follows: 316K (2020), 529K (2021), 458K (2022), 487K (2023). Some reports are classified as both business imposter and government imposter. Because the vast majority of frauds are not reported to the government, these figures reflect just a small fraction of the public harm. See Anderson, K. B., To Whom Do Victims of Mass-Market Consumer Fraud Complain? at 1 (May 2021), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3852323 (study showed only 4.8% of people who experienced mass-market consumer fraud complained to a Better Business Bureau or a government entity).[3] Excluding reports classified as unspecified, 48% of reports directly to the FTC in 2023 were classified as business imposter or government imposter or both.[4] The combined reported losses to business imposter and government imposter reports by year are as follows: $310M (2020), $673M (2021), $961M (2022), $1.1B (2023).[5] “Bank transfer” refers to a payment category in Sentinel that includes bank wire transfers and ACH payments. Some consumers also select this option for Zelle payments.[6] Reports about FTC impersonation have increased about five-fold since 2020. See FTC Consumer Alert, The FTC won’t demand money, threaten you, or promise you a prize (July 2023) available at  https://consumer.ftc.gov/consumer-alerts/2023/07/ftc-wont-demand-money-threaten-you-or-promise-you-prize[7] The top scam types were identified by hand-coding a random sample of 850 reports filed in 2023 classified as business imposter or government imposter that included a narrative describing the consumer’s experience.[8] More people reported impersonation of Geek Squad in 2023 than any other impersonated company. The number of reports about Geek Squad impersonation increased over 100-fold from 2020 to 2023. These scams have contributed heavily to the rise of email as the most reported fraud contact method in 2023. See FTC Consumer Alert, How to recognize a fake Geek Squad renewal scam (October 2022) available at https://consumer.ftc.gov/consumer-alerts/2022/10/how-recognize-fake-geek-squad-renewal-scam. 

Romance scammers’ favorite lies exposed bacree February 8, 2023 | 10:50AM Romance scammers’ favorite lies exposed By Emma Fletcher Romance scammers tell all sorts of lies to steal your heart and money, and reports to the FTC show those lies are working. Last year’s romance scam numbers looked a lot like 2021 all over again, and it’s not a pretty picture. In 2022, nearly 70,000 people reported a romance scam, and reported losses hit a staggering $1.3 billion.[1] The median reported loss: $4,400.[2] These scammers pay close attention to the information you share, and don’t miss a beat becoming your perfect match. You like a thing, so that’s their thing, too. You’re looking to settle down. They’re ready too. But there is one exception – you want to meet in real life, and they can’t. Reports show their excuse is often baked right into their fake identity. Claiming to be on a faraway military base is the most popular excuse, but “offshore oil rig worker” is another common (and fake) occupation. In short, there’s no end to the lies romance scammers will tell to get your money. Reports show romance scammers often use dating apps to target people looking for love. But reports of romance scams that start with unexpected private messages on social media platforms are even more common. In fact, 40% of people who said they lost money to a romance scam last year said the contact started on social media; 19% said it started on a website or app.[3] Many people reported that the scammer then quickly moved the sweet talk to WhatsApp, Google Chat, or Telegram.[4] You may have heard about romance scammers who tell you they’re sick, hurt, or in jail – or give you another fake reason to send them money. But did you know that many romance scammers operate by offering to do you a favor? They may claim to be a successful cryptocurrency investor who’ll teach you how it’s done. But any money you “invest” goes straight into their wallet. In another twist, they might say they’ve shipped you a valuable package (not true), which requires you to send money for “customs” or some other made-up fee. It’s all a lie. You send the money, and the package never turns up. Reports also show that scammers who convince you to share explicit photos will then threaten to share them with your social media contacts. It’s called sextortion, and these reports have increased more than eightfold since 2019.[5] People aged 18-29 were over six times as likely to report sextortion than people 30 and over.[6] About 58% of 2022 sextortion reports identified social media as the contact method, [7] with Instagram and Snapchat topping the list.[8] The way romance scammers take your money is another important piece of the story. People reported sending more money to romance scammers using cryptocurrency and bank wires than any other method: together, they accounted for more than 60% of reported losses to romance scams in 2022.[9] While not the costliest payment method,[10] gift cards were the most frequently reported – 24% of people who reported losing money to a romance scam in 2022 said it was taken using gift cards.[11] So how can you spot a romance scammer in the act? Nobody legit will ever ask you to help—or insist that you invest— by sending cryptocurrency, giving the numbers on a gift card, or by wiring money. Anyone who does is a scammer. If someone tells you to send money to receive a package, you can bet it’s a scam. Talk to friends or family about a new love interest and pay attention if they’re concerned. Try a reverse image search of profile pictures. If the details don’t match up, it’s a scam. Help stop scammers by reporting suspicious profiles or messages to the dating app or social media platform. Then, tell the FTC at ReportFraud.ftc.gov. If someone is trying to extort you, report it to the FBI. Learn more at ftc.gov/romancescams. [1]This figure and figures throughout this Spotlight are based on reports to the FTC’s Consumer Sentinel Network (Sentinel) that were classified as romance scams. Reports filed with the Internet Crimes Complaint Center (IC3) prior to 2019 are not included in Sentinel. To ensure greater consistency in reporting trends over time, IC3 reports were excluded from earlier Spotlights about romance scams, but now are included in this Spotlight to focus on the scope and nature of the losses. Reported romance scam losses from all Sentinel sources by year are as follows: $493M (2019), $730M (2020), $1.3B (2021) $1.3B (2022). Because the vast majority of frauds are not reported to the government, these figures reflect just a small fraction of the public harm. See Anderson, K. B., To Whom Do Victims of Mass-Market Consumer Fraud Complain? at 1 (May 2021), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3852323 (study showed only 4.8% of people who experienced mass-market consumer fraud complained to a Better Business Bureau or a government entity). [2]Reports provided by MoneyGram and Western Union are excluded for this median loss calculation as these data contributors report each loss transaction separately, which typically affects calculation of an individual’s median loss. As noted in footnote 1, reports provided by IC3 were excluded from earlier Spotlights about romance scams, but are included in this Spotlight. For this reason, this median loss figure should not be compared to previous Spotlights. [3]These figures exclude reports that did not identify a contact method. Of 2022 loss reports that identified social media as the contact method and named a specific platform, 29% named Instagram and 28% named Facebook. [4] About 40% of 2022 romance scam loss reports with detailed narratives mentioned WhatsApp, Google Chat, or Telegram. Detailed narratives are defined here as narratives of at least 2,000 characters in length [5] This figure excludes reports contributed by IC3 as not all IC3 reports about sextortion are included in Sentinel. Romance scam reports involving sextortion were identified using keyword analysis of the narratives provided in reports. [6] This age comparison is normalized against the population size of each age group. The analysis is based on U.S. Census Bureau data for population by age. See U.S. Census Bureau, Annual Estimates of the Resident Population for Selected Age Groups by Sex for the United States (June 2020), available at https://www.census.gov/data/tables/time-series/demo/popest/2010s-national-detail.html. This excludes reports contributed by IC3 as not all IC3 reports about sextortion are included in Sentinel. [7] This figure excludes reports that did not identify a contact method. [8] Of 2022 sextortion reports that identified social media as the contact method and named a specific platform, 41% named Instagram and 31% named Snapchat.   [9] Figures pertaining to payment methods exclude reports that did not identify a method of payment and reports provided by Western Union and MoneyGram. Figures pertaining to bank wires are based on reports indicating “bank transfer or payment” as the payment method. [10] In 2022, the median individual reported loss was $700 when gift cards were identified as the payment method on romance scams. For comparison, the median individual reported losses on other top payment methods were as follows: $10,079 (cryptocurrency), $10,000 (bank transfer or payment), and $650 (payment app or service). The gift card payment method includes cards that hold a specific cash value that can be used for purchases and reload cards such as MoneyPak that are used to add value to these cards. [11] This figure excludes reports that did not indicate a payment method.

Reports of romance scams hit record highs in 2021 bacree February 8, 2022 | 5:20PM Reports of romance scams hit record highs in 2021 By Emma Fletcher Online dating can be a great way to find lasting love – or even your next fling. But reports to the FTC suggest it also creates opportunities for scammers. In the past five years, people have reported losing a staggering $1.3 billion to romance scams,[1][2] more than any other FTC fraud category. The numbers have skyrocketed in recent years, and 2021 was no exception – reported losses hit a record $547 million for the year. That’s more than six times the reported losses in 2017 and a nearly 80% increase compared to 2020. The median individual reported loss in 2021 was $2,400.[3] Image Reports show that romance scammers are masters of disguise. They create fake online profiles with attractive photos swiped from the web. Sometimes they even assume the identities of real people. They may study information people share online and then pretend to have common interests. And the details they share about themselves will always include built-in excuses for not meeting in person. For example, many reportedly claim to be serving overseas in the military or working on an offshore oil rig. Many people who’ve experienced scams report being contacted on dating apps. But you don’t have to be looking for love to be courted by a romance scammer. Reports of unexpected private messages on social media platforms are common. More than a third of people who said they lost money to an online romance scam in 2021 said it began on Facebook or Instagram.[4] Romance scammers weave all sorts of believable stories to con people, but their old standby involves pleas for help while claiming one financial or health crisis after another. The scammers’ stories might involve a sick child or a temporary inability to get to their money for a whole range of reasons. People who lost money to a romance scammer often report sending money repeatedly: they believe they’re helping someone they care about. But it’s all a lie. In another common twist on the romance scam, people agree to help transfer money as a favor to their supposed sweetheart. The scammer often claims to need help getting their inheritance money or moving funds for an important business deal. Stories like this often set people up to become “money mules” – they may think they’re just helping, but they’re really laundering stolen funds. These stories are also used to trick people into sending their own money. People have reported paying all sorts of bogus fees to accept money that never turns up. Others say they deposited a check from their sweetie and sent some of the money as instructed, only to find out later that the check was fake – leaving them without the money they sent. Still others report sending money based on promises – later proven to be false – that they would be repaid. A growing trend in 2021 was scammers using romance as a hook to lure people into bogus investments, especially cryptocurrency. People are led to believe their new online companion is a successful investor who, before long, casually offers investment advice. These so-called investment opportunities often involve foreign exchange (forex) trading or cryptocurrency. And when people follow this investment “advice,” they wind up losing all the money they “invest.” In fact, the largest reported losses to romance scams were paid in cryptocurrency: $139 million last year alone.[5] That’s a remarkable growth in cryptocurrency payments to romance scammers: 2021 numbers are nearly five times those reported in 2020, and more than 25 times those reported in 2019. In 2021, the median individual reported loss using cryptocurrency was a staggering $9,770. While cryptocurrency losses were the most costly, it was not the most common payment method for romance scams. In 2021, more people reported paying romance scammers with gift cards than with any other payment method. In fact, about one in four people said they paid a romance scammer with a gift card, and they reported losing $36 million last year.[6] Reports about romance scams increased for every age group in 2021. The increase was most striking for people ages 18 to 29. For this age group, the number of reports increased more than tenfold from 2017 to 2021. But the reported median loss increased with age: people 70 and older reported the highest individual median losses at $9,000, compared to $750 for the 18 to 29 age group.[7] So how can you spot scammers if you’re looking for love online? Nobody legit will ever ask you to help by sending cryptocurrency, giving the numbers on a gift card, or by wiring money. Anyone who does is a scammer. Never send or forward money for someone you haven’t met in person, and don’t act on their investment advice.  Talk to friends or family about a new love interest and pay attention if they’re concerned. Try a reverse-image search of profile pictures. If the details don’t match up, it’s a scam. Help stop scammers by reporting suspicious profiles or messages to the dating app or social media platform. Then, tell the FTC at ReportFraud.ftc.gov. Learn more at ftc.gov/romancescams. [1] This figure and figures throughout this Spotlight are based on reports to the FTC’s Consumer Sentinel Network that were classified as romance scams, excluding reports provided by the Internet Crimes Complaint Center (IC3). IC3 reports submitted prior to 2019 are not included in Sentinel, so these reports were excluded to ensure greater consistency in reporting trends over time. [2] Because the vast majority of frauds are not reported to the government, this figure reflects just a small fraction of the public harm caused by romance scams. See Anderson, K. B., To Whom Do Victims of Mass-Market Consumer Fraud Complain? at 1 (May 2021), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3852323 (study showed only 4.8% of people who experienced mass-market consumer fraud complained to a Better Business Bureau or a government entity). [3] Reports provided by MoneyGram and Western Union are excluded for this calculation as these data contributors report each transaction separately, which typically affects calculation of an individual’s median loss. [4] This figure is based on 2021 loss reports directly to the FTC categorized as romance scams and where the consumer identified an online platform. Of these, the top platforms identified as the starting point for the scam were Facebook (23%) and Instagram (13%). [5] Ranked by reported dollar losses the top payment methods on romance scams reported in 2021 are as follows: cryptocurrency ($139M), bank transfer or payment ($121M), wire transfer ($93M), and gift card or reload card ($36M). [6] About 28% of people who reported losing money on a romance scam in 2021 said they paid with a gift card or reload card, followed by cryptocurrency (18%), payment app or service (14%), bank transfer or payment (13%), and wire transfer (12%). These figures exclude MoneyGram and Western Union as these data contributors report each transaction separately, which affects the number of reports.   [7] In 2021, the median individual reported losses to romance scams by age were as follows: $750 (18-29), $2,000 (30-39), $3,000 (40-49), $4,000 (50-59), $6,000 (60-69), and $9,000 (70 and over). Reports provided by MoneyGram and Western Union are excluded for these calculations as these data contributors report each transaction separately, which typically affects calculation of an individual’s median loss. About 70% (38,886 reports) of 2021 romance scam reports included age information.

Amazon tops list of impersonated businesses jwolf October 20, 2021 | 9:55AM Amazon tops list of impersonated businesses By Emma Fletcher Scammers impersonate all sorts of businesses, but reports to the FTC’s Consumer Sentinel point to Amazon as a runaway favorite for scammers. From July 2020 through June 2021, about one in three people who reported a business impersonator said the scammer claimed to be Amazon. Reports about Amazon impersonators increased more than fivefold during this period.1 About 96,000 people reported being targeted, and nearly 6,000 said they lost money. Reported losses totaled more than $27 million. The reported median individual loss: $1,000. These impersonators get your attention with messages to call about suspicious activity or unauthorized purchases on your Amazon account. When you call the number, a phony Amazon representative tricks you into giving them remote access to your computer or phone to supposedly fix the problem and give you a refund. But then—whoops—a couple of extra zeros are keyed in and too much money is (supposedly) refunded. They tell you to return the difference. In fact, some people have reported that the “representative” even begged for help, saying Amazon would fire them if the money wasn’t returned. To make their lies about refunding that so-called overpayment more believable, scammers have reportedly accessed people’s online banking. They move money from one account to another—say, from savings to checking. Then, when people see a large deposit in their checking account, they think it’s the refund, but it’s all fake. If they send money, as requested, they end up sending their own (very real) money. In another twist, scammers tell people to buy gift cards and send pictures of the numbers on the back. The scammers may call these numbers “blocking codes” or “security codes,” and explain that sharing them can block the hackers who—supposedly—took over the Amazon account in question. But the only thing those numbers are good for is getting (or stealing) the money on the card. After people send pictures of the gift cards, they often report getting texts confirming a supposed account credit in the amount of each gift card purchase. That’s just another trick scammers use to get their targets to buy more cards. Another common hook are text messages that say you’ve won a raffle for a free product from Amazon. People who click the link to claim their free prize then have to enter credit card information to pay for “shipping.” Before long, they see charges they never agreed to. Most people who report these scams say the scammer contacted them.2 But some people have reported finding bogus phone numbers when searching online for the number to call Amazon about a real issue. Of course, the scammers who answer calls to those phone numbers are happy to “help.” The data suggest that Amazon impersonation scams may be disproportionately harming older adults. Over the past year, people ages 60 and up were over four times more likely than younger people to report losing money to an Amazon impersonator.3 Older adults also reported losing more money—their median reported loss was $1,500, compared to $814 for people under age 60. After Amazon, Apple is the second most frequently reported company, but it’s a distant second. Apple impersonators reportedly tell people their iCloud account has been compromised or that they’ve been chosen to get a free iPad. Sound familiar? Scammers change names but often use the same lies again and again.4 Here are ways to avoid some common tricks business impersonators use: Never call phone numbers given in unexpected calls, texts, emails, or messages on social media. And don’t click any links. Those are scams. If you’re worried, check it out. Go directly to the company’s website to find out how to reach them. Don’t trust the phone numbers or links that come up in search results. Never give anyone remote access to your devices unless you contacted the company first (using its real number). If someone tells you to give remote access to get a refund, it’s a scam. Never pay by gift card. Nobody legit will ever require you to. And never send pictures of gift cards. If someone tells you they need the numbers on the back of a gift card, it’s a scam. Talk about it. If you’re getting these messages, so are people you know. Help them avoid the scam by sharing what you know. To learn more about how to spot, avoid, and report scams—and how to recover money if you’ve paid a scammer—visit ftc.gov/scams. If you spot a scam, report it to the FTC at ReportFraud.ftc.gov.     1 Amazon impersonator scam reports increased from 1,794 reports in July 2020 to 9,796 in June 2021. Amazon impersonator scams are defined here and throughout this Spotlight as reports from all sources to the FTC’s Consumer Sentinel Network that are categorized as business imposter scams and name Amazon as the impersonated company. 2 About 70% of Amazon impersonator scams reported from July 2020 through June 2021 identified a phone call as the method of contact, followed by text (15%), and email (8%). These percentages exclude reports that did not specify a method of contact. 3 This age comparison is normalized based on the number of loss reports per million population by age during this period. Reports from consumers under age 18 are excluded. Population numbers were obtained from the U.S. Census Bureau Annual Estimates of the Resident Population for Selected Age Groups by Sex for the United States (June 2020). 4 Prior to the increase in reports of Amazon impersonators, Social Security Administration impersonation scams were the most frequently reported imposter scam. From July 2020 through June 2021, reports about Social Security Administration impersonators totaled 80,797. The number of reports about Social Security Administration impersonators declined from 7,441 in July 2020 to 4,166 in June 2021. For more information, see the April 2019 Consumer Protection Data Spotlight, “Growing Wave of Social Security imposters Overtakes IRS Scam,” located at ftc.gov/spotlight.

Gift cards top scammers’ wish lists bcooper1 December 21, 2020 | 10:34AM Gift cards top scammers’ wish lists By Emma Fletcher Gift cards make great holiday gifts. But reports to FTC show that scammers like getting them, too. Scammers don’t ask nicely, though. They use trickery to insist on gift cards, and they ask for specific brands. Scammers prefer gift cards because they can get quick cash while staying anonymous. In fact, giving a scammer the PIN numbers off the back of a gift card is the number one way people report losing money on many of the top frauds reported to the FTC. About one in four people who tell the FTC they lost money to fraud say they paid with a gift card.1 In fact, gift cards have topped the list of reported fraud payment methods every year since 2018. During that time, people reported losing a total of nearly $245 million, with a median individual loss of $840.2 Based on reports, certain types of scams seem to favor gift cards as a form of payment. Nearly half of people who reported paying someone posing as a government authority said they paid with a gift card. Nearly 45% of those who reported losing money to someone pretending to be a friend or a family member paid with gift cards. And gift cards were the reported payment method in about a third of tech support and other business impersonation scams.3 Scammers always have some reason why you need to buy gift cards. They might say you’re in serious trouble with the government and must buy “electronic vouchers” to avoid arrest. Some people say scammers posing as businesses promised special promotional pricing for phone or TV service if they paid for the first three months with a gift card. Others thought they were buying gift cards to evaluate a retailer as a “secret shopper.” Scammers tell people to go to specific stores like Walmart, Target, CVS, and Walgreens to buy the cards. Some people have reported that alert store employees have intervened, but scammers work hard to stop that from happening. They keep people on the phone and tell them not to talk to anyone about why they’re buying the cards. They even tell people what to say if anyone asks questions. The top gift card brands that scammers demand change over time. Reports to the FTC suggest that eBay is now the gift card of choice for scammers. It replaces Google Play in the decidedly un-coveted top spot, which earlier replaced iTunes as the top card brand people reported.4 But reports of fraud payments with both these brands declined significantly in 2019, and the brand reported most often in 2020 is eBay. Notably, reports suggest scammers have diversified, and now frequently request a variety of other gift cards in addition to these top brands.5 Whenever someone demands to be paid with a gift card, that’s a scam. Gift cards are for gifts, not for payment. If you paid someone with a gift card by giving them the numbers on the card, keep the card and your receipt, and report it to the card issuer immediately. You’ll find contact information for some major gift cards at ftc.gov/giftcards. Then report your experience to the FTC at ReportFraud.ftc.gov. To learn more about spotting and avoiding gift card scams, visit ftc.gov/giftcards. If you’re a retailer, or state or local law enforcement, and you’re interested in helping people avoid gift card scams, visit ftc.gov/StopGiftCardScams to download, print, and share materials in your store and community. 1 This figure is based on reports from January 2018 through September 2020, exluding reports that do not specify a payment method. Figures pertaining to gift card reports throughout this Spotlight are based on the total number of fraud reports that identify a gift or reload card (e.g., MoneyPak) as a method of payment. This analysis excludes fraud reports classified as “online shopping” because of the legitimate use of gift cards among large retailers. To eliminate inconsistencies between data sources, reports provided by Sentinel data contributors and reports that do not specify a method of payment are also excluded from this analysis. 2 These figures are based on gift card reports from January 2018 through September 2020 that indicate a dollar loss of $1 to $999,999. 3 Tech support scams typically involve the impersonation of computer companies like Microsoft, and start with a call or popup warning about a computer virus or other technical issue. Consumers affected by tech support scams pay for “repair” of a nonexistent problem. 4 Card brands are identified through keyword analysis of the narratives provided in gift card reports. 5 In 2020 through Q3, the most reported gift and reload card brands mentioned in fraud reports are eBay, Google Play, Target, iTunes, and Amazon. Together, these five brands make up approximately 39% of the reports where people indicated they paid a scammer with a gift or reload card. Reports provided by data contributors or that are classified as “online shopping” are excluded. Card brands are identified through keyword analysis of the narratives provided in this subset of reports.

Pandemic purchases lead to record reports of unreceived goods jwolf July 1, 2020 | 10:00AM Pandemic purchases lead to record reports of unreceived goods By Emma Fletcher Online shopping has been a lifeline for many people hunkering down to help reduce the spread of COVID-19. But as online orders have increased, so too have reports to the FTC’s Consumer Sentinel Network about sellers failing to deliver on promises — or just failing to deliver, period. During April and May of 2020, more people reported problems with online shopping than in any other months on record. More than half said they never got the items they ordered.1 With COVID-19, scammers quickly launched opportunistic websites. People reported online shops claiming to sell the things they desperately needed but could not get. By the week of April 5, reports of unreceived merchandise were almost on par with previous peak numbers from the December 2019 holiday shopping season.2 In the following weeks, as people scoured the internet for scarce items, reports of unreceived orders continued to climb. Reports in May were nearly double the December 2019 numbers.3 Of course, many sellers have had legitimate supply chain problems, but these reports are about no-show orders, not just shipping delays. People reported unreceived orders of facemasks in April and May far more often than any other item, and undelivered sanitizer, toilet paper, thermometers, and gloves were also reported.4 But that’s not the whole story. Reports show that scammers shirked their promises to shoppers on everything from clothes to electronics – and even puppies, which people had bought online. Scammers often used pandemic-related pretexts for supposed shipping delays, sometimes – in the puppy scam – even charging extra fees for COVID-related “regulations.” Then they just stopped responding. This stalled people who might otherwise have posted negative reviews. Reports show that scammers have honed their ability to put up remarkably polished looking websites in recent years. They’ve learned to work social media and online advertising to their advantage, and to peel off negative reviews by simply disappearing and popping back up under a new name. This is a global problem, since the web gives scammers cheap access to consumers worldwide.5 While pandemic purchases have fueled record numbers, reports about online shopping were common even before the pandemic. People reported losing nearly $420 million dollars since 2015,6 and the numbers have been on the rise for years. The FTC took in more than 86,000 online shopping reports in 2019, which is a 38% increase over 2018, and the largest annual increase in recent years.7 Most troubling is the rise in the number of people who report that they simply did not get the items they ordered. That number increased more than fourfold from 2015 to 2019.8 There is some good news. Credit cards are the top way people reported paying for their online shopping, including unreceived orders. What’s good about this is that people can dispute credit card charges if they don’t get what they paid for. Here are some tips to avoid being left empty-handed when you shop online: Check out the company by typing its name in a search engine with words like or “scam” or “complaint.” Confirm the seller’s physical address and phone number. Watch out for unfamiliar sites selling products that are in short supply or name brand goods at steep discounts. Pay with a credit card, and contact your credit card company to dispute the charges if a seller doesn’t deliver your goods or they are not as promised. To learn more about Coronavirus-related scams, visit ftc.gov/coronavirus/scams. For more about online shopping, including how to dispute credit card charges, go to ftc.gov/onlineshopping. And if you spot a scam, report it to the FTC at ftc.gov/complaint. 1 This monthly comparison is based on online shopping reports directly to the FTC from January 2015 through May 2020. Consumers submitted 15,492 such reports in April 2020 with 7,545 indicating that items were not received, and 18,946 such reports in May 2020 with 10,827 indicating that items were not received. 2 This comparison is based on 1,519 online shopping reports about unreceived merchandise directly to the FTC the week of December 15, 2019 and 1,486 such reports the week of April 5, 2020. 3 This comparison is based on 5,487 online shopping reports about unreceived merchandise directly to the FTC in December 2019 and 10,827 such reports in May 2020. 4 This finding is based on keyword analysis of the narratives provided in online shopping reports directly to the FTC in April and May of 2020 indicating that items were not received. Of the 18,370 such reports, 1,328 mentioned facemasks. 5 Online shopping is the top category reported to econsumer.gov, a partnership of more than 35 consumer protection agencies around the world. Many of these reports are from consumers located outside the United States. Consumers filed 56,040 online reports with eConsumer from January 2015 through May 2020. 6 This figure is based on online shopping reports directly to the FTC from January 2015 through May 2020. 7 This increase is calculated based on 86,472 and 62,606 online shopping reports directly to the FTC in 2019 and 2018 respectively. In earlier years, 34,249 (2015), 40,319 (2016), and 53,373 (2017) such reports were made. 8 This increase is calculated based on 9,435 and 38,701 online shopping reports directly to the FTC in 2015 and 2019 respectively indicating items were not received. In the intervening years 12,080 (2016), 18,852 (2017), and 26,710 (2018) such reports were made.

Government imposter scams top the list of reported frauds jwolf July 1, 2019 | 1:30PM Government imposter scams top the list of reported frauds By Emma Fletcher Pretending to be someone people trust is what scammers do. They may claim to be a well-known company or a beloved family member, but data from the FTC’s Consumer Sentinel Network suggest that pretending to be the government may be scammers’ favorite ruse. Since 2014, the FTC has gotten nearly 1.3 million reports about government imposters. That’s far more than any other type of fraud reported in the same timeframe. This spring, monthly reports of government imposter scams reached the highest levels we have on record.1 The vast majority of people who report this type of scam say it started with a phone call,2 and these callers have their mind games down pat. Government impersonators can create a sense of urgent fear, telling you to send money right away or provide your social security number to avoid arrest or some other trouble. Or they can play the good guy, promising to help you get some free benefit like a grant or prize, or even a back brace. Scammers like to make the situation so immediate that you can’t stop to check it out. These scams can be extremely lucrative. Reported losses to government imposter scams add up to more than $450 million since 2014. Only 6% of people who report government imposters say they lost money.3 But when people do lose money, it’s a lot: the median individual reported loss is $960.4 People ages 20 to 59 report losing money to these scams at higher rates than people 60 and over, but median individual reported losses increase with age. People 80 and over report a median loss of $2,700.5 Gift cards are now the payment method of choice for these scammers. Most people who tell us they lost money to a government imposter say they gave the scammer the PIN number on the back of gift cards like Google Play or iTunes cards.6 Wire transfers come in a distant second to gift cards as a payment method. But with both methods, the scammer gets quick cash while staying anonymous, and the money is simply gone. The top government imposters reported so far in 2019 have both familiar and new faces. The FTC reported recently about the dramatic surge in Social Security imposters, but IRS imposters are still hanging on in the top five. Scammers use “bureau” or “administration” in their name to make their government grant offers sound official, and use generic names like “sheriff’s office” to suggest a hefty law enforcement presence. Government imposters will adapt quickly to find new ways to get your money. Lots of government agencies have been impersonated, including the FTC. The scammer’s pitch is even more convincing when they fake the number on your caller ID so it shows the name or phone number of a real government agency. It’s illegal to fake the number on caller ID, but scammers know it helps convince people that the caller really is with the government. So what can you do to protect yourself against imposters when their stories keep changing? Be suspicious of any call from a government agency asking for money or information. Government agencies don’t call you with threats, or promises of – or demands for – money. Scammers do. Don’t trust caller ID – it can be faked. Even if it might look like a real call, don’t trust it. Never pay with a gift card or wire transfer. If someone tells you to pay this way, it’s a scam. Check with the real agency. Look up their number. Call them to find out if they’re trying to reach you – and why. Report government imposter scams to the FTC at FTC.gov/complaint. To learn more, visit ftc.gov/imposters. Want to explore the data? Visit the new interactive infographic on government imposters. 1 People reported about 41,400, 39,600, and 46,600 government imposter scams to Sentinel in March, April, and May 2019 respectively. Prior to March 2019, the highest monthly reporting levels for government imposter scams on record were in September 2016 with about 38,400 reports filed. 2 From January 2018 through May 2019, 96% of people who reported a government imposter scam and specified a contact method said they were contacted by telephone. 3 Figure based on reports to Sentinel from January 2018 through May 2019 that were classified as government imposter scams. 4 Median loss calculations are based on government imposter reports submitted to Sentinel from January 2018 through May 2019 that indicated a monetary loss ($1 – $999,999). 5 Age comparison and median loss figure based on government imposter reports in from January 2014 through May 2019 that indicated a monetary loss. People who said they were 20 – 59 filed loss reports at a rate of 269 reports per million people in this age group, while people who said they were 60 and over filed 211 loss reports per million people in this age group. Population numbers obtained from the U.S. Census Bureau: U.S. Census Bureau, Annual Estimates of the Resident Population for Selected Age Groups by Sex for the United States, States, Counties and Puerto Rico Commonwealth and Municipios (June 2018). Not all reports include usable age information. 6 Gift\reload cards were identified as the payment method for 58% of government imposter reports to Sentinel from January 2018 through May 2019 that indicated a payment method. Wire transfers were identified as the payment method for 13% of these reports.