Becoming a victim of fraud is a traumatic experience no one wants to face. Aside from the humiliation of falling for a scam and the potential financial loss, there’s the fear and loss of trust. Suspicious activity reporting can help, especially now companies are working to create more efficient ways to help companies deal with financial fraud complaints. The better the tech, the greater the chance of fighting fraud and protecting people from the scams you’ll see below.
Financial Fraud And Suspicious Activity Reporting
One of the leading causes of these suspicious activity reports is fraud. Victims contact financial services and official complaints services to report instances of a loss of money through scams and fraudsters tricking them out of their money. Unfortunately, these cases have increased in number and severity in recent years. There was a sharp rise during the panic, while everyone was locked down in their homes and more reliant on online service and tech. Criminals could easily prey on the ignorance of those unfamiliar with common schemes or those not used to dealing with their finances online. The general anxiety and panic about the future and the need for wise investments wouldn’t have helped. There were, on average, 2.6 million cases of fraud in the USA alone during the height of the pandemic. There was also an increase in money lost due to common types of fraud. Either the fraudsters were smarter in their ability to get money out of people, the victims were more inclined to hand it over in their mental state, or a combination of the two.
Below is a list of the most common types of fraud recorded in 2023. The data comes from Thomson Reuters Institute’s look at suspicious activity reporting for 2023. There, the team looked at the average number of complaints and the losses reported to the FBI Internet Crime Reporting Agency. We’ll start with the lowest and end with the highest.
5) Investment Related Scams
This is the more old-fashioned way to scam people online. We’re talking about people promising massive returns on pyramid schemes and dodgy timeshares in other states. It’s only number 5 on the list because of the lower number of reports at 107,205. It seems that maybe people are aware enough not to fall for them, or the scheme is decreasing. However, when the schemes work, they are highly profitable. There was a $3,907.6M reported loss, which shows why it’s so important for suspicious activity reporting in this area.
4) Internet Services
You might expect internet-related fraud cases to be higher on the list, especially after the rise in online activity during the pandemic. Internet fraud is common, and cyber attacks make the news a lot more than we’d like to see. However, victims of internet fraud are often targeted for data rather than large sums of money. Some are also unaware of phishing attempts. That is why the number of reports is lower at $113,548, as is the lost revenue of $28.5M
3) Online Shopping and Negative Reviews
This one is a little different because it affects companies more than consumers, unlike some other scams directly targeting individuals for their money. Negative reviews are part of the online retail experience, and companies can’t expect a flawless rating. However, a systematic campaign with obviously fake negative reviews can be incredibly damaging. There were 359,706 reports related to this and online shopping, with victims claiming to have lost around $358.7M as a result. Improvement in suspicious activity reporting can help agencies crack down on these scammers and protect businesses.
2) Prizes, Sweepstakes and Lotteries
This set of scams is another that easily preys on the vulnerable in hard times. The official lottery system is a gamble enough on its own, but at least it’s regulated. It’s too easy for scammers to set up emails and unsolicited mail inviting people to join a new lottery or sweepstake system for a monthly fee. People also still get mail telling them they’ve won prizes in contests they didn’t enter. All they have to do is hand over their bank details to claim the money. Those who fall for this can lose a lot of money. There were 148,161 complaints about these schemes in the 2023 report, with a total loss of 308.6M.
1) Imposter Scams
Finally, we have something that’s risen significantly, as scammers use more sophisticated tech. 761,600 people reported scams where they were tricked into giving someone money under false pretenses. This is a far cry from the old stereotype of the Nigerian Prince scam. People pose as family members in distress and can sound quite convincing. This attempt to guilt-trip older victims led to a total loss of $2,731.5M.
Effective Suspicious Activity Reports Are Essential
This data and the amount of money lost over the year showcase the importance of effective suspicious activity reports. Citizens need to be completely confident in their ability to use financial systems and deal with customer service teams without the risk of scams. However, this isn’t realistic when the smartest scammers discover new ways to prey on the vulnerable. That’s why it’s up to financial institutions to provide efficient suspicious activity reporting on a customer’s behalf. When they work with skilled tech teams to streamline the process, improve compliance, and provide detailed reports, they can rebuild trust with their clients. They can also help the FBI and other agencies shut down scams, learn about trends, and protect others in the future.
Make A Report As A Fraud Victim
The important takeaway for any bank customers and potential targets is that help is available if the worst ever happens. There is no need to suffer in silence if someone accesses your account without authorization or you unwittingly hand over details to a fraudster. Contact the police to report the illegal activity and loss, contact your bank to freeze the account set up an official complaint, and learn from the experience. Internet fraud, imposter scams, and fake prize draws are still all too common and easy to fall for. So, think twice about sharing information or agreeing to anything online. Also, remember that suspicious activity reporting is on your side if you need it.
