There was a five-year high in terms of financial losses stemming from internet-related crime, according to an annual report released Tuesday by the Federal Bureau of Investigation (FBI).

Newsweek reached out to the FBI for comment.

Why It Matters

Cases of scams and fraud are becoming increasingly more common in the digital age, potentially wiping out retirement savings while targeting older individuals who may not be as adept with technology. The widespread effects can be devastating for both individuals and the general economy, with approximately $8.8 billion fraudulently stolen in 2022, according to the Federal Trade Commission.

What To Know

The newest report, analyzing fraud on a global scale during the 2024 calendar year, showed the highest number of losses (about $16.6 billion) and the second-highest number of complaints (about 860,000).

The $16.6 billion in losses is a five-year high, representing an approximate 33 percent increase compared to 2023. The 860,000 complaints, about 256,000 of which were related to actual financial loss, trail 2023’s approximate 880,000 complaints.

Complaints in the past five years have averaged about 836,000.

There have been about 4.2 million complaints and about $50.5 billion in losses in the past five years. Complaints received by the FBI’s Internet Crime Complaint Center (IC3), which is celebrating the program’s 25th year, have exceeded 9 million.

The top 10 U.S. states with the biggest losses in 2023 are as follows:

• California ($2.53 billion)

• New Jersey ($434 million)

• Pennsylvania ($400 million)

• Washington ($368 million)

Residents in California, Texas, Florida, New York, Pennsylvania, Illinois and Arizona also reported the most complaints. The other states in the top 10 of complaints were Indiana, Ohio and North Carolina.

Individuals aged 60 and older comprised the most financial losses ($4.8 billion), as well as issued the largest number of complaints (147,127).

The top three areas of complaints stemmed from phishing/spoofing (193,407), cryptocurrency (149,686) and extortion (86,415).

Nationally, the costliest schemes were reported as investment fraud ($6.57 billion), business email compromise ($2.77 billion), and tech support fraud ($1.46 billion).

Investment fraud can pertain to retirement and 401k scams, or Ponzi and Pyramid schemes.

Business email compromise scams target businesses or individuals working with suppliers and/or businesses that regularly perform wire transfer payments and use intrusive techniques for unauthorized transactions.

Tech support fraud refers to impersonators of customer support/service.

What People Are Saying

B. Chad Yarbrough, FBI Operations Director for Criminal and Cyber: “As nearly all aspects of our lives have become digitally connected, the attack surface for cyber actors has grown exponentially. Scammers are increasingly using the Internet to steal Americans’ hard-earned savings. And with today’s technology, it can take mere taps on a keyboard to hijack networks, cripple water systems, or even rob virtual exchanges. Cryptocurrency has become an enticing means to cheat investors, launder proceeds, and engage in other illicit schemes.”

What Happens Next

The FBI recommends that citizens remain vigilant and review consumer and industry alerts published by the IC3. Individuals or businesses who suspect being victims of internet-related crimes should immediately notify all financial institutions involved in their relevant transactions.