Californians are losing the biggest sums to investment fraudsters of any state – with 4,982 victims conned out of $870 million in 2022, figures show.
Americans across the board are being warned about an ‘unprecedented rise’ in bogus investment schemes – which have become the fastest-growing scam in the U.S.
Now, a study by investment fraud attorneys Carlson Law found the biggest bulk of the losses were coming from the Golden State – followed by Florida, Texas, New York and New Jersey respectively.
Some $306 million was stolen from people living in Florida, Texans lost $235 million to the cruel crime, while victims in New York and New Jersey lost $173 million and $110 million each.
Investment fraud is when a victim is tricked into investing money into a fake scheme with the promise of lucrative returns. It comes in various forms, with victims urged to invest in fake cryptocurrency platforms, Ponzi schemes and even ‘phantom properties’ that don’t exist.
California residents lost the most money to investment fraud last year, with 4,982 victims being conned out of a huge $870 million
Investment fraud is when a victim is tricked into investing money into a fake scheme with the promise of lucrative returns
Newer scams even utilize artificial intelligence to con victims into investing in schemes that do not actually exist.
A record $3.82 billion was stolen from Americans through investment fraud in 2022, according to the Federal Trade Commission (FTC) – more than any other type of fraud. This was a 128 percent increase on the $1.67 billion lost the year before.
The increase was driven by a surge in cryptocurrency investment scams, as Americans lost a record $2.57 billion to this type of fraud last year alone, according to the FBI. This was almost three times the amount in 2021.
It comes after the Secret Service warned that ‘pig-butchering’ scams – where victims are lured into romantic relationships before being convinced to invest in bogus cryptocurrency schemes – are on the rise.
According to the study, Maryland, Washington, Arizona, Illinois and Massachusetts rounded out the ten states where residents lost the most cash to investment fraud, with victims being scammed out of $435 million collectively.
Many of the most populous states ranked highly for the most amount of money lost last year.
California, however, was also the state most impacted overall by investment fraud. The state is home to tech haven San Francisco which is generally perceived as the cryptocurrency capital of the U.S.
Not only did it rank first for the total money lost, it also placed second for the average loss per victim at $176,463, and fifth for highest rate of people impacted – with 12.6 per 100,000 residents falling victim to scammers.
Cryptocurrency scams are the fastest growing type of investment fraud, according to the FBI’s Internet Crimes Complaint Center
A record $3.82 billion was stolen from Americans through investment fraud in 2022, according to the Federal Trade Commission (FTC)
New Hampshire, meanwhile, topped the list for the average loss per victim – with each person being conned out of an average of $204,447.
Residents in Nebraska typically lost $163,565, while victims living in Wyoming and Kansas were tricked out of an average of $161,472 and $156,790 respectively.
When it comes to the areas where the crime is most rampant, the District of Columbia was the place where fraud happens most frequently.
In 2022, 26 complaints were filed with the FBI per 100,000 residents in the district.
State-wise, investment fraud was most prevalent in Maryland – with 17.5 complaints per 100,000 residents – followed by New York with 17.1 per 100,000 people.
Alongside cryptocurrency fraud, the study also warns Americans to be aware of so-called ‘Phantom Property’ scams, where criminals create a lucrative real estate investment opportunity that does not actually exist.
Fraudsters will advertise property listings online that are available for investors at a low price that can be flipped for quick profits – and will ask an investor for an upfront fee before disappearing.
Scammers are also increasingly taking advantage of artificial intelligence and deep fake videos of celebrities to trick victims into making illegitimate investments.
DailyMail
