Facts About Financial Fraud
Financial fraud is one of the most invasive, costly ordeals a person can experience. Financial scams have increased inline with the advancement of technology. Everyone pays for the loss for financial fraud - even those not directly affected - as the cost of goods and services increases to pay off outstanding fees accrued by credit and charge card frauds.
The following data below highlights recent fraud statistics as demonstrated in the Financial Fraud infographic.
Credit Card Fraud
Credit card counterfeiters use the latest technology to read, change and implant magnetic information on counterfeit credit cards. About $4.8 million is lost due to fraudulent credit card use of MasterCard and Visa alone. In total, credit card fraud costs cardholders and credit card issuers as much as $500 million a year.
5 Credit Card Fraud Risks
- Counterfeit Credit Cards - make up for 37% of all funds lost through credit card frauds.
- Lost/Stolen Cards - account for 23% of all card frauds. Workplace, gym, and unattended vehicles are most common places of theft.
- No-Card Fraud - comprises 10% of all the losses. Occurs when providing credit card information over the phone/Internet sites.
- Non-Receipt Fraud - is responsible for 7% of all losses. Occurs when new/replaced cards mailed by your card company are stolen in transit
- Identity-Theft Fraud - accounts for 4% of all losses. Occurs when criminals apply for a card using someone else's identity and information
The monetary loss of internet scams easily exceeds $300 million per year!
Top 5 Internet Scams With the Most Complaints:
- Identity Theft: 14.4%
- FBI-related Scams: 13.2%
- Miscellaneous Fraud: 9.8%
- Advance Fee Fraud: 9.1%
- Spam: 8.6%
Men report 25% higher monetary losses related to internet spam than females.
The 60+ age bracket reported higher amounts of monetary loss from internet scams than any other group.
3 Most Common Locations for Internet Scams:
- United States: 65.9%
- United Kingdom: 10.4%
- China: 3.1%
Additional Fraud Facts
According to the Financial Fraud Research Center:
- More than 30 million consumers are defrauded each year.
- 9 out of 10 investment fraud victims are men.
- Most popular communication methods of consumer fraud: print (27%), Internet (22%), television/radio (21%), telemarketers (8.4%).
- 6 in 10 lottery fraud victims are women.
- The average cost to consumers from fraud was $631 in 2011.
- The Federal Fraud Enforcement Task Force uncovers more than $8 billion in securities, commodities and investment fraud losses alone.
- 4.8 million adults annually fall victim to the most commonly-reported consumer scam: fraudulent weight loss products