How many reports did Consumer Sentinel Network receive in 2020? What percentage of this is related to fraud? What are the most common scams people report? The answer: 4.7 million, 46% of which were imposter scams.
The FTC just released its annual Consumer Sentinel Network Data Book, and it’s filled with charts, graphs, and state-by-state data on who consumers think didn’t follow the numbers in 2020. In addition to reporting statistics on suspicious behavior through consumer surveys, the databook sounds the alarm about scams targeting businesses.
First, here are some of the things consumers reported in 2020 to the Consumer Sentinel Network, a database of reports filed with the Federal Trade Commission, other agencies, industry groups and nonprofits and available only to law enforcement officials. Aside from imposter scams, online shopping is the second most reported category of fraud, which undoubtedly increased due to a surge in reports during the early days of the coronavirus pandemic. Consumer Reports said more than $3.3 billion was lost to fraud in 2020, up from $1.8 billion in 2019.
Additionally, nearly 1.4 million identity theft reports were received through the FTC’s IdentityTheft.gov website, approximately double the number in 2019. The 2020 databook also includes insights into the age groups most likely to report fraud, the amount of money consumers with average income reported as losses, and the states with the highest number of fraud and identity theft reports per capita.
Now there are two points to remind companies to stay vigilant.
1. Scammers are trying to take advantage of your company‘Nice name. The Consumer Sentinel Network has received more reports of business imposter scams, up from approximately 107,000 in 2019 to 155,000 in 2020. Fraudsters will hijack the name of a business or merchant, often to get others to click on malicious links or hand over sensitive information. Variations on the scheme involve fake job offers — a form of fraud that is likely an outgrowth of pandemic-related employment upheaval.
what can you do: Remind customers that your company will never email or call them out of the blue asking for sensitive information – credit card numbers, account information, etc. For employees, a remote workplace can make it harder for them to investigate suspicious contacts. Maybe it’s time to review training on the risks of clicking on email links or responding to phone calls requesting confidential information. No need to start from scratch. The FTC provides profiles of business email imposters that you can share with your employees.
2. A surge in identity theft related to unemployment insurance claims. Of the identity theft reports received in 2020, 406,375 were from people who claimed their information was misused to apply for government documents or benefits, such as unemployment insurance. This is a staggering increase compared to 23,213 in 2019.
what can you do: Alert your HR team and tell your employees to notify you if they receive correspondence regarding an unemployment insurance claim while they are still working for you. If you suspect this form of fraud, please contact the appropriate state agency immediately.
When you observe suspicious behavior in your business or as a consumer, notify the FTC at ReportFraud.ftc.gov. By reporting what you see to the FTC and members of the Consumer Sentinel Network, you can help law enforcement efforts and perhaps protect others from being scammed. Family, friends and colleagues are also encouraged to report fraud. To explain the importance of speaking up, the FTC’s data analytics website at ftc.gov/exploredata offers eye-catching graphics that you can customize and add to your slides for your next business or community presentation.
