The Federal Trade Commission (FTC) recently released 2023 consumer fraud loss statistics, reporting 2.6 Million consumer fraud claims representing $10 Billion in losses, the highest numbers to date. The 2023 reported fraud claims rose by 23% since 2020 and the dollar amount increased by 200% over the 3-year period.

In 2023, $1.8 Billion was lost in bank transfer and payment transactions.

These numbers highlight the rapid rise in payment disputes over the same time period, putting increased demands on financial institutions to respond to consumer fraud disputes in a timely manner under regulatory mandates. Automation of payment dispute processing becomes a critical tool to address compliance requirements and provide effective fraud loss mitigation service. 

The FTC’s Consumer Sentinel Network is a database that receives reports directly from consumers, as well as from federal, state, and local law enforcement agencies, the Better Business Bureau, industry members, and non-profit organizations. More than 20 states contribute data to Sentinel. Sentinel received 5.4 million reports in 2023; these include the fraud reports detailed above, as well as identity theft reports and complaints related to other consumer issues, such as problems with credit bureaus and banks and lenders. In 2023, there were more than 1 million reports of identity theft received through the FTC’s IdentityTheft.gov website.

Year-by-Year Look at Consumer Fraud Reports (Source: Federal Trade Commission news releases.)

In analyzing the year-by-year data, 2023 FTC fraud data shows a 23% increase in fraud reports since 2020 and a 200% increase in dollar volume for the same 3-year time period.

 

2020

2021

2022

2023

Number of Consumer Fraud Reports

2.1 M

2.8 M

2.4 M

2.6 M

3-Year % Change

n/a

n/a

n/a

23% increase in number of fraud reports since 2020

Amount of Fraud Losses

$ 3.3 B

$ 5.8 B

$ 8.8 B

$10 B

3-Year % Change

     

200% increase in $ amount since 2020

Source: Federal Trade Commission News Release, February 9, 2024. “As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public”. 

You may also like

Reg E Dispute Resolution: The Role of Automation in Issuing Provisional Credit
Reg E Dispute Resolution: The Role of Automation in Issuing Provisional Credit
5 April, 2024

At the heart of Reg E lies the provision for issuing provisional credit to consumers during the investigation of unautho...

Simplify Time-Consuming Regulation E Compliance with Process Automation
Simplify Time-Consuming Regulation E Compliance with Process Automation
22 July, 2021

The global pandemic fueled an unprecedented increase in electronic payments and fraudulent claims. The resulting growth ...

What Consumers Need to Know About Debit Card Fraud
What Consumers Need to Know About Debit Card Fraud
22 August, 2023

Debit cards have transformed the way we manage our finances, offering convenience and ease. However, with this convenien...