FTC Consumer Sentinel Report 2020 - Scams & Frauds reported Nationally and Michigan

The Federal Trade Commission (FTC) “Consumer Sentinel 2020” report released in February of 2021, has startling information on the continued increase in “reported” scams and frauds in America. I said “reported” because in my 30 years as a crime prevention practitioner I’ve spoken with so many who didn’t want to file a police report. After all, they were embarrassed that they fell victim to a scam. As this report reflects that data is broken down into two categories for the readers: “Identity Theft reports and Fraud Reports”.

 The top three (3) categories  reported in 2020, ID Theft 4.7 million reports, Fraud- 2.2 million reports, in dollars that total is $3.3 billion in fraud, average per person  $311.00

 The report reflects that 44%, ages 20-29  reported losing money to fraud more often than older, but when people aged 70 and higher had a loss, the median loss was much higher.  The two most common scams that we are reading about every day, “ Imposter Scams” and the alarming reports of “Identity Theft” for government benefits up 2920%, yes that is what the report says! As the reports are broken down into the top categories these two rank at the top.

 The FTC report also has a breakdown by states, let’s look at Michigan’s 2020 reports of ID Theft and Fraud:

1. Fraud and other reports - MI Ranked nationally: 32^nd per 100k residents, 71, 328 reports filed, loss - $57.5 million, $250 median fraud losses
2. ID Theft and other reports- MI ranked nationally: 30^th, per 100k residents, 24,370 reports filed,

 I have always been concerned about our seniors and caregivers of the aging population, I can speak to this first hand, for my family I served as the Power-of-Attorney (POA) for my father-in-law, who was a 95-year-old, WWII Veteran. I witnessed all of the possible scams that were attempted by telephone, email, and mailers. I also had to question medical billing at times and alert the Medicare Fraud division with suspicious billing practices.

 This report breaks down fraud by age: 50-59 (16 % -161,846-$253M) , 60-69 (18% -179,757 $290 M), and 70-79 (11%,110,959, $197M) 80 and over (4%-40,819, $105M)

 The primary methods of payments that victims are being asked to pay by are credit cards, debit cards, payment app, or services such as “Peer-to-Peer, Venmo, Zelle, cash app, go fund me” and others. Wire transfer, gift cards that are loaded with specific amounts and the numbers/pins given to the imposters and the most recent which most don’t understand how it works is “Cryptocurrency”, checks, money orders.

 Watch for a detailed article soon on ‘Cryptocurrency” this is payment method is being used by “hacktivists”  exploiting businesses, school districts, and others with payment of ransomware.

AARP's Fraud Watch reported that they took "80" calls over the past two years from persons who encountered scammers requesting cryptocurrencies like Bitcoin. Victims are instructed in how to open an account and told to buy a fraction of a Bitcoin, in as little as $10.00, all transactions are person-to-person, without any bank or regulating body involved. "When the crooks get the money, it's gone".

AARP will also be monitoring the ongoing "Social Security" imposter scams that are occurring and with benefits increasing in 2022, I'm sure that the Social Security Administration will be helping to educate those who receive benefits to be aware of the scams and fraud attempts that will be occurring.

I have followed the FTC Sentenial Reports since the first report in 2001, and every year the numbers have gone up in the two categories of Fraud and ID Theft and this detailed report has gotten better and an important tool for Crime Prevention Practitioners,  all areas of law enforcement,  AARP and others that are working with those who may be impacted by the growing methods of those attempting to victimize consumers.

 Attached are three of the slides reference to access the full FTC 2020 Consumer Sentinel Report click on the link provided.

 “Stay safe please share this information to help reduce the chance of being a victim of these crimes”

 Ritchie Coleman, Public Safety Community Coordinator, CPAM Legislatie Rep.

Pittsfield Twp. Dept of Public Safety

FTC Consumer Sentinel 2020 Report