Report: More Than US$1 Trillion Lost to Scams in One Year

Collaboration Emphasizes Urgent Need for Advanced AI Solutions and Global Cooperation to Combat Escalating Scam Epidemic

San Mateo, CA — October 7, 2024 — Feedzai, the world’s first RiskOps platform for financial risk management, in partnership with the Global Anti-Scam Alliance (GASA), releases the 2024 Global State of Scams Report. The comprehensive study reveals scams have siphoned off a staggering US$1.03 trillion globally over the past year, with US victims seeing the largest impact across the globe. This underscores the critical need for innovative solutions and collaborative efforts to combat this growing threat.

The effects of these scams aren’t just felt in consumers’ back pockets, it takes an emotional toll as well. Victims say they feel vulnerable, afraid and have a loss of overall trust. The data proves they’re falling victim to phone calls and text/SMS message scams the most. Unfortunately only 4% of global scam victims are able to fully recover their money.

Based on insights from 58,329 respondents across the globe, the report not only highlights the vast financial losses but also sheds light on the growing disparities in scam trends across different regions.  While nearly half of global consumers are targeted by scammers at least once a week, countries like Brazil, Hong Kong, and South Korea experience scams as an almost daily occurrence. In contrast, nations such as Vietnam, Saudi Arabia, and China report a marked decrease in scam activity.

“With over US$1 trillion stolen by scammers in just one year, we’re facing a global epidemic that demands immediate and decisive action,” said Nuno Sebastião, CEO at Feedzai. “Banks are at the sharp end of the scam lifecycle. They have one critical advantage over the criminals – an intimate understanding of their customers. At Feedzai, we’re not just detecting fraud—we’re using advanced AI and machine learning to predict and prevent scam activity. Our partnership with GASA allows us to highlight prevention best practice across financial services and more widely with other industry sectors.. . GASA members are acting now to reclaim trust and protect the global economy from this escalating threat.”

Key Findings from the Report:

• Financial Impact on Developed Nations: The hardest-hit regions include the U.S., Denmark, and Switzerland. Victims in these countries reported some of the highest per capita losses, with the average U.S. victim losing US$3,520.
• Economic Strain on Developing Nations: In countries like Pakistan, scams account for a staggering 4.2% of the nation’s GDP, with Kenya and South Africa following closely behind at 3.6% and 3.4%, respectively.
• Consumer Confidence vs. Vulnerability: Despite 67% of respondents expressing confidence in their ability to spot a scam, the consistent high losses suggest that overconfidence may lead to complacency, increasing vulnerability.
• Global Disparities in Scam Activity: The report emphasizes the need for tailored strategies to address unique regional challenges due to stark differences in scam prevalence and losses.

A Call to Unite Against a Borderless Threat

The report underscores the necessity for financial institutions, telecom companies, social media platforms, and governments to collaborate in a unified effort to combat scams. Standardizing scam definitions and sharing data are critical steps in understanding and disrupting scam operations.

“Scammers operate without borders, and so must our efforts to stop them,” added Sebastião. “By leveraging cutting-edge technology and fostering industry-wide collaboration, we can create a safer financial ecosystem for everyone.”

Feedzai’s Commitment to Combating Scams

Feedzai is dedicated to safeguarding financial institutions and their customers from the evolving threats of scams and fraud. By utilizing advanced AI and machine learning technologies, Feedzai’s RiskOps platform analyzes vast amounts of data in real time to detect unusual behavior and prevent fraudulent activities before they impact consumers.

For More Information

To access the full 2024 Global State of Scams Report, please visit the link.

Media Contact

pr@feedzai.com