Online scams are draining billions of dollars from Americans every year, including victims in Michigan, according to a new report.
Federal data show fraud losses in Michigan rose about 30% from 2023 to 2024, highlighting the rapid growth of scams. The report from the Consumer Federation of America estimates Americans lose at least $119 billion annually to online scams, far higher than the roughly $16 billion reported to authorities, because many victims never report the crime.
"Our analysis relies on the underreporting patterns that are documented by the Bureau of Justice Statistics, which found that just 14% of financial fraud victims reported the incident to authorities," said Ben Winters, director of artificial intelligence and privacy at the Consumer Federation of America. "So, that's over seven times higher than what’s reported to authorities."
Researchers say many scams now begin on social media platforms, including investment schemes, phishing attempts and fake tech-support scams. Experts say consumers can better protect themselves by avoiding unsolicited investment offers, verifying companies before sending money, and reporting scams when they occur.
Public concern about online fraud is rising. Polling presented alongside the report shows most Americans consider online scams a major problem and want stronger accountability for those behind the schemes.
"As these scams become more sophisticated, as the volume of them increases, as the losses start to add up, these scams are becoming more personalized and tailored," said Kelsey Suter, partner at Upswing Research, "and so consumers, voters, are really looking to their political leaders to offer better protection here."
Experts warn scams are becoming harder to detect as criminals increasingly use artificial-intelligence tools to generate convincing messages and impersonations.
