Scam victims lost over $1.03 trillion in the past year, a sum that exceeds the total gross domestic product (GDP) of most countries, including Switzerland, Poland, and Taiwan. An average American victim faced a loss of $3,520.
The findings are based on 58,329 consumers surveyed by the Global Anti-Scam Alliance (GASA) in collaboration with Feedzai.
GASA’s 2024 Global State of Scams report revealed that almost half of the world encounters a scam attempt at least once a week. Brazil, Hong Kong, and South Korea are the most heavily impacted regions, where citizens face scam exposure nearly daily.
More than two-thirds (70per cent) of scam victims did not report their losses to the authorities.
“Scammers have siphoned away over $1.03 trillion globally in just the past year—a figure that rivals the GDP of some nations,” GASA said.
According to the International Monetary Fund (IMF), only 19 countries have a nominal GDP larger than $1 trillion.
Brazil, Hong Kong, and South Korea are the most heavily impacted regions, where citizens face scam exposure nearly daily.
The financial toll of scams is staggering, equivalent to between three and four per cent of GDP in the most affected developing countries, such as Pakistan, Kenya, or South Africa. However, for developed countries, such as Italy, Netherlands, and France, the losses were closer to 0.2per cent of GDP.
US, Denmark, and Switzerland consumers reported the highest losses per victim, with Americans averaging a $3,520 loss. Only four per cent of scam victims were able to recover their losses.
Social media and Artificial Intelligence (AI) drive new scams as fraudsters increasingly use generative AI to produce realistic images, scripts, videos, and voices in seconds.
Phone calls and text messages remain the primary methods of initial contact. Scammers also often approach victims on WhatsApp, Instagram, and Gmail.
“Beyond financial losses, scams inflict severe emotional distress on victims. Feelings of vulnerability, fear, and loss of trust are common. The emotional burden of scams is a crucial reminder that fraud prevention goes beyond financial metrics; it’s also about protecting individuals’ mental well-being,” the report said.
Despite high losses, 67per cent of people are confident in their ability to detect scams.
“Consumers are becoming smarter at catching scams themselves. This strong display of confidence is a testament to banks’ and others’ efforts to educate consumers on the red flags to watch for that could be a scam,” Co-Founder, Chairman, and CEO of Feedzai, Nuno Sebastião, said.
Cyber crooks deploy AI, others to steal over $1tr in 12 months
