Scamming people out of their savings and hard-earned finances has become a widespread epidemic in the United States. In recent years—especially with the advent of social media—scammers have become increasingly innovative and diverse in their schemes, making it harder than ever for citizens to discern what is genuine from what is a scam.
Scams have grown into a major financial problem, costing Americans billions of dollars annually and affecting a significant share of the population. Government and research data consistently show increases in both the number of scams people encounter and the amount of money lost to fraud.
Identity fraud and scams, particularly those targeting seniors, cost Americans an estimated $47 billion in 2024, according to an AARP-backed report. A survey report estimated total scam exposure—including unreported incidents—cost around $64 billion in the U.S. in 2025, with most Americans encountering at least one scam in the prior year. Federal Bureau of Investigation (FBI) data show that cybercrime, which includes many scam types, cost Americans between $16 billion and $16.6 billion in 2024.
There is no doubt that scams cost Americans billions of dollars each year, but the real cost is almost certainly higher than official estimates because many victims never report what happened.
Scammers use a wide range of schemes, but some stand out as especially widespread or financially damaging. It is important that our community be aware of these scams and remain on guard to avoid being preyed upon. These include:
Investment and financial scams
These include fake cryptocurrency schemes, Ponzi-style investments, phony real estate deals, and other offers promising high returns. In 2024, investment scams alone were reported to have cost Americans between $5 billion and $6 billion.
Imposter scams
These are among the most common scams and usually involve phone calls, text messages, and emails. Scammers pretend to be government agencies such as the IRS or Social Security, tech support representatives, or—most notably—family members in distress. Victims have reported receiving calls from individuals claiming to be relatives with a bad cold so their voice cannot be recognized, relatives who have been arrested and need bail money, or those who need funds to pay an attorney. Imposter scams cost nearly $3 billion in 2024.
Identity theft
Criminals use stolen personal information to access bank accounts, credit cards, loans, or to open accounts in someone else’s name. Identity fraud losses remain extremely high. For example, an estimated $27 billion of the $47 billion lost to scams in 2024 was related to identity theft.
Online shopping and job scams
Fake online stores, requests for personal information to deliver unexpected items, and bogus job offers trick victims into paying money or sharing sensitive data.
Cryptocurrency scams
Fraudsters lure victims into fake crypto investments or gain access to their digital wallets, sometimes as part of organized crime operations. Reports indicate billions more in cryptocurrency losses, with some estimates showing massive annual theft totals in 2025.
Phishing and social engineering
Emails, texts, or calls that trick victims into revealing passwords or banking information are extremely widespread and often lead to larger, more damaging scams.
While scams can be highly sophisticated, many share common patterns that can be guarded against by adopting basic protection habits.
One of the most important safeguards is never giving out personal information—such as Social Security numbers, bank details, or credit card numbers—in response to unsolicited calls, texts, or emails. If a caller claims to be from a government agency or a bank, hang up and call the official number listed on your statement or website.
People should be skeptical of “too good to be true” offers, promises of large returns, or urgent demands for payment tied to surprising benefits. Avoid unconventional payment methods—such as gift cards, wire transfers, or cryptocurrency-only payments—when dealing with unknown buyers or sellers. Use strong, unique passwords and enable two-factor authentication for important accounts.
Education is also key. People should educate themselves and their families on spotting red flags, including urgent language, spoofed contact information, and emotional manipulation. Technical safeguards should be adopted as well, such as keeping software and devices updated and using reputable antivirus and anti-phishing tools.
When scams are suspected, victims should report them to the Federal Trade Commission at ReportFraud.ftc.gov and to their bank or credit card company. Early reporting can sometimes help financial institutions reverse transactions or stop ongoing fraud. Cybercrime should also be reported to the FBI’s Internet Crime Complaint Center (IC3).
Completely eradicating scams in the United States is extremely difficult, as many originate overseas or within criminal networks that rapidly shift tactics. Technology—including artificial intelligence—has also enabled scammers to scale operations and convincingly mimic legitimate communications.
However, progress is possible through stronger enforcement. Federal task forces targeting cryptocurrency scams and impersonation rings are actively seizing funds. Still, there is a need for improved laws, stronger penalties for platforms that facilitate scam advertising, better identity verification standards, and enhanced financial safeguards.
Scams are a major problem in the United States, costing Americans billions of dollars each year. They take many forms, from investment and identity fraud to online shopping and cryptocurrency schemes. While total eradication may be unlikely, education, public awareness, reporting, and strong enforcement can significantly reduce the harm.
