The FTC and Facts About Fraud

You might have heard of the Federal Trade Commission (FTC) but may not know much about who they are or what they do. The FTC is a federal bureau dedicated to protecting the public from deceptive or unfair business practices and unfair methods of competition through law enforcement, advocacy, research, and education. Their main goal is to educate and protect American consumers.

One way that the FTC protects consumers is by taking statements from the public about troubles they encounter in the marketplace. These reports are organized and stored in the Consumer Sentinel Network, which is only available to law enforcement for investigations and finding fraud trends and patterns. However, the data collected shows quarterly updated reports for public viewing. The result is a series of interactive reports that show basic statistics that can also be manipulated to find trends in consumer problems—for example, fraud, identity theft, or other harmful business practices.

In February, the FTC released the Consumer Sentinel Network Data Book for 2023. The data revealed is informative, and we can learn much from it. It is accessible to the public and can be found on the FTC.gov website.

Statistics from 2023

Below are a few facts collected from the Data Book.

There were over 5.39 million reports made to the Consumer Sentinel Network.
The type of complaint with the highest number was Identity Theft, with 1,036,903 statements filed.
Americans lost $10 billion to fraud, $1 billion more than the previous year. Of that total, $2.7 billion was due to imposter scams (a fraud subcategory).
Young people experienced financial loss more often than older people.
- 44% of victims were aged 20-29.
- 25% of targets were aged 70-79.
Of those who lost money, older people reported higher amounts stolen from fraud and identity theft incidents.
- The median amount lost for age groups:
  - 60-year-olds and younger were $500 or less in each age category.
  - 70-79 jumped to $803.
  - 80+ was even higher at $1,450.

As you can tell from the information above, the FTC is essential to the health of the future of America. These numbers strongly indicate that these types of crime are not going away. The agency works diligently to educate the public so that individuals can avoid becoming victims of fraud or identity theft.

The problems that result from these crimes are enormous. The damage from these felonies runs greater than the reported financial losses from the victims. Fraudsters are undermining the integrity of our economy. The costs for necessities, like insurance, are increasing. It erodes citizens’ trust in the government, businesses, and humankind.

Consumers are being pursued relentlessly through email, text messages, phone calls, the mail system, social media, and other websites. Because it is so easy for fraudsters to access almost anyone, people need to be proactive to secure their identity, fiscal and personal data, and finances. You can take numerous steps to help safeguard yourself and your loved ones.

Action Steps for Fraud Prevention

To avoid becoming a victim of fraud and identity theft takes vigilance on the part of the individual. People need to regularly educate themselves about the tactics of fraudsters. Knowing how these criminals operate will help them to avoid the pitfalls of fraud and identity theft. Most importantly, share what you know with friends and family. Below are some more tips to become proactive against fraud.

Use Alert U to notify you of transactions being made using your cards. Immediately report any unrecognized activity that occurs.
Be cautious when dealing with unsolicited communications.
Use Anti-virus software and password managers.
Carefully read over your monthly financial statements from your credit union.
Destroy documents containing sensitive information.
Add your name and phone number to the Do Not Call registry.
Use credit monitoring. At FSU Credit Union, we partnered with SavvyMoney to make staying informed about your credit easy.
Inspect card readers to avoid skimmers.
Do not give personal information to unknown people and entities.

Report Your Suspicions

People should not wait to become victims to report suspicious activity. If you see something, say something. Your report could save other innocent people from becoming prey. Below is a list of where and how to report fraud or identity theft.

Reporting Federally

- FEMA’s fraud hotline 866-720-5721.

Reporting Locally

- Floridians can report a scam via the No Scam App or by visiting Fraud Free Florida.

Outside of Florida, check your state attorney’s website for information.
Contact local law enforcement.

Reporting to non-governmental agencies

- Validate the integrity of a charity through the following websites: Guide Star, Charity Watchdog, or Charity Navigator.
- Verify if a business is licensed, insured, or has any complaints by going to My Florida License and the Better Business Bureau.
- Report phishing emails to Anti-Phishing Working Group, Inc. (APWG) at [email protected].