Arrr, ye scurvy dogs! Scams be the policy problem that be sailin' under the radar, yarrr!
2024-01-22
Arrr! 'Tis a mighty tale indeed! A vast number of 21 million landlubbers, aye, me hearties, that be 8 percent o' the adult populace, were cruelly bamboozled o'er the year! An' can ye believe it, the thieves made off with a fortune, mayhaps between $21 billion to $137 billion! Blimey!
A recent survey by Gallup revealed that 8% of U.S. adults, or approximately 21 million Americans, fell victim to scams in the past year. To put this number in perspective, it is equivalent to the entire population of Florida. The Federal Trade Commission estimated that fraud losses range from $21 billion to $137 billion annually, with the lower figure being "very conservative." If fraud accounts for $137 billion, it would surpass the annual revenue of major corporations like Verizon, Comcast, Met, or Target, as well as the total annual budget of the Department of Homeland Security.AARP conducted a poll which found that two-thirds of Americans believe that scams have reached a "crisis level." Scams affect individuals across the socio-economic spectrum, particularly those without college degrees and with annual household incomes below $50,000. Gallup also found that 57% of Americans worry about being scammed, making it the second-highest crime concern in the country after identity theft.
Scammers are utilizing more advanced technology, and the types of scams are becoming more diverse. The four prominent types of scams identified by the FBI are investment, tech support/call center, business email compromise, and confidence/romance fraud. Investment scams, driven by the rise of cryptocurrency, have become the costliest reported scams. Tech support and call center scams target the elderly and are primarily carried out by organized crime gangs in India. Business email compromise is prevalent in small and medium-sized businesses, while confidence/romance scams, such as the "grandparent scam," are on the rise.
In addition to financial damage, scams also have a significant impact on victims' emotional and physical well-being. Scammers often utilize sophisticated tactics, such as "sextortion," where they pose as teenage girls and demand money from boys in exchange for not sharing their photos. While most scams against U.S. citizens are perpetrated by foreign organized crime groups, state and federal authorities have yet to develop a comprehensive plan to combat this issue.
The British government has taken significant steps to address fraud, including the establishment of an interagency working group and the signing of the world's first "Online Fraud Charter" with major technology companies. The United States should adopt a similar approach by creating an interagency working group and authorizing a federal advisory commission to collaborate with industry partners. Without effective action, the wave of fraud, fueled by artificial intelligence, will continue to grow uncontrollably, causing further harm to individuals.
David Mansdoerfer, former deputy assistant secretary for health, and Ken Westbrook, former director for information sharing at the Office of the Director of National Intelligence, advocate for a comprehensive response to scams in 2024.