Investment scams cost American consumers $5.7 billion in 2024, marking a 24% increase from 2023, according to the Federal Trade Commission.
This made investment fraud the largest category of consumer losses, according to CNBC.
FTC data shows that 79% of those who reported investment scams lost money, with an average loss of over $9,000 per victim.
Since these figures are based on self-reported cases, the actual scale of investment fraud is likely much higher, as many victims never report their losses.
“These scams are becoming a really huge problem for consumers,” said John Breyault, the National Consumers League’s vice president of public policy, telecommunications and fraud.
One common investment fraud is “pig-butchering” scams, where fraudsters build trust with victims over time—often through social media or messaging apps—before persuading them to invest in a fake opportunity.
These scams often appear legitimate, with fake websites, testimonials, and even customer support.
However, once victims invest significant amounts, the scammers vanish, leaving them with no way to recover their money.
Organized crime networks have set up scam operations centers across Southeast Asia, particularly in Cambodia, Laos, and Myanmar, according to the Council on Foreign Relations.
These hubs are used for large-scale cyber fraud, including investment scams, romance fraud, and crypto schemes.
Criminal networks frequently use cryptocurrency for pig-butchering scams because it allows them to move large sums quickly, cheaply, and with little risk of detection, according to researchers at the University of Texas at Austin.
