Business & Finance
Investigation highlights rising U.S. scam losses and limited victim recourse
A report by the AP and FRONTLINE finds Americans facing tens of billions in fraud losses amid tax liabilities and limited bank protections.
The short version
- An investigation by The Associated Press and FRONTLINE found that Americans reported $15.9 billion in fraud losses to the FTC last year, representing a 25% increase from the prior year.
- Victims often face compounded financial hardship, including potential tax liabilities on stolen retirement funds and limited liability protections from U.S. banks.
- Federal enforcement remains fragmented across at least 13 agencies, while other jurisdictions like the UK and EU mandate broader consumer compensation rules.
- Congress is considering more than a dozen anti-fraud bills, though current crypto regulations and banking rules still do not require institutions to return stolen funds.
Key facts
- Americans reported $15.9 billion in losses to the Federal Trade Commission last year, though the agency estimated actual 2024 losses were closer to $200 billion.[Associated Press]
- An AP-NORC poll found that 98 percent of Americans suspect they have received scam messages, and 30 percent reported losing money or personal information.[Associated Press]
- Under tax provisions made permanent in 2025, personal losses from common scams generally do not qualify for tax deductions, leading some victims to owe taxes on retirement money stolen by fraudsters.[Associated Press]
- Under existing U.S. law, financial institutions are rarely held liable for transactions authorized by customers, whereas countries such as the United Kingdom have introduced mandatory reimbursement requirements.[Associated Press]
- At least 13 federal agencies currently handle scam-related matters, and the FBI's IC3.gov portal receives an average of nearly 3,000 internet crime complaints daily.[Associated Press]
What remains uncertain
- The exact scale of total financial losses nationwide remains unknown because reported figures to the FTC are widely considered a severe undercount.[Associated Press]
- It is unclear whether pending congressional legislation or a proposed victim restitution program under a presidential executive order will be implemented or result in mandatory fund recovery.[Associated Press]