Texas consumers reported losing more than $636 million to scams last year, according to newly released data. The Federal Trade Commission (FTC) received a staggering 151,680 fraud reports from consumers in Texas in 2023, highlighting the pervasive issue of fraud in the state. Reports ranged from identity theft to online shopping scams, underscoring the variety of fraudulent activities plaguing Texas residents.
The FTC’s Consumer Sentinel Network serves as a central repository for consumer reports, gathering information from consumers, law enforcement agencies, industry members, and non-profit organizations. These reports play a crucial role in FTC investigations, which aim to halt illegal activities and provide restitution to affected consumers whenever possible.
Among the most alarming findings, Texas consumers collectively lost $636,419,230 to fraud in 2023, with an average loss of $500 per consumer. The median loss reflects the breadth and depth of the issue, as Texans experienced financial devastation due to various scams. Identity theft topped the list of reported fraud cases, followed closely by Credit Bureaus, Information Furnishers and Report Users, Imposter Scams, Online Shopping and Negative Reviews, and Banks and Lenders.
Nationally, the FTC received reports of over $10 billion lost to fraud in 2023, representing an increase from the previous year’s $8.8 billion. Investment scams emerged as the costliest category, accounting for losses exceeding $4.6 billion, while imposter scams ranked second with reported losses of $2.7 billion. With 2.6 million consumers submitting fraud reports last year, imposter scams and online shopping scams stood out as the most commonly reported types. Prizes, sweepstakes, and lotteries, investment-related reports, and business and job opportunities rounded out the top five fraud categories.
The FTC’s Sentinel database received a total of 5.4 million reports in 2023, with more than 1 million reports of identity theft submitted through the dedicated IdentityTheft.gov website. These reports serve as the foundation for the FTC’s law enforcement investigations, as well as being shared with numerous federal, state, local, and international law enforcement professionals. While the FTC does not resolve individual complaints, the information collected in Sentinel reports is invaluable to their mission of combatting fraud.
In conclusion, the alarming rise in fraud reports and losses among Texas consumers in 2023 calls attention to the pressing need for improved consumer protection measures. The FTC’s efforts to gather and analyze data from various sources demonstrate their commitment to addressing this issue. As fraud continues to evolve and endanger consumers’ financial well-being, it is vital for individuals to remain vigilant and report any suspicious activity to the proper authorities.
