According to the Federal Trade Commission (FTC)'s annual Consumer Sentinel Network report, consumers lost over $12.7 billion to fraud in 2024. There were approximately 2.63 million fraud reports, with 38% of cases reporting financial loss.

Overall, the median loss was about $500, but the median loss for certain fraud categories was much higher. The age group 30-39 reported the most fraud losses, but older individuals (age 70 and over) reported larger average losses.

Below, we list the 10 most common types of fraud based on the FTC report, explain how the fraud occurs, and what steps you can take to protect yourself.

Ten Most Common Types of Fraud

1. Imposter Scams

In this scam, fraudsters pretend to be someone else to intimidate you or gain your trust. Then, they try to trick you into sharing personal information or sending them money. Imposter scams can begin via phone, text message, email, online direct message, or even in person. Here are some examples:

Grandparent Scam: The scammer pretends to be a relative or friend, calling you to request financial assistance.

Romance Scam: The scammer pretends to have platonic or romantic interest in you before deceiving you.

Robocall Scam: The caller pretends to work for a government agency or company representative.

Scammers may also pretend to work for the police, IRS, FBI, technical support, well-known companies, or charities. They may also use artificial intelligence to impersonate others. Then, they use different scenarios and schemes to try to defraud you.

How to Protect Yourself from Imposter Scams

If someone contacts you suddenly and asks for your personal information or asks you to click a link, be very careful, especially if it is from an unfamiliar number or email address. Even a text message about a delivery could be from a scammer pretending to be a shipping company employee.

It is best to end the initial communication, then look up the organization the person claims to represent and contact them directly. Legitimate customer service representatives or government workers will not mind you taking your time and should understand your caution.

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2. Online Shopping and Negative Reviews

Online shopping fraud may involve websites overcharging for products or services, failing to deliver your ordered products or services on time (or at all), or failing to honor their guarantees. Negative review fraud reports make up only a small portion of overall fraud reports, targeting businesses that try to prevent users from leaving honest reviews.

How to Protect Yourself from Online Shopping and Negative Review Fraud

Look for red flags on websites, such as unusually low prices or misspelled URLs. If you arrived at the site via an ad on social media and see a large countdown or limited-time promotion, these may also be warning signs that the site is a scam.

If you decide to purchase, use a credit card, PayPal, or other payment method that offers purchase protection. That way, you can dispute the charge and hopefully get your money back if the seller is a fraudster.

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3. Business and Job Opportunities

Business and job opportunity scams may involve fake work-from-home, franchise, or business startup opportunities; multi-level marketing or pyramid schemes; or fake or illegal jobs. The scammer may ask you to fill out an application, which is actually a ploy to collect your personal information.

Alternatively, you may be asked to pay an application fee, pay for supplies, or pay for their placement services. Or, the scammer may send you money, claiming they accidentally sent too much and asking you to refund part of it. The overpayment scam works because their initial payment will be reversed in a few days, but you have already sent them money via an irreversible method (such as gift cards).

How to Protect Yourself from Fraudulent Business and Job Opportunities

Search online for complaints against the individual or company posting the job or business opportunity. Never pay to submit an application, never send money to someone who promises you a job, and never send money to someone who claims to have overpaid you.

Also, be wary of scams that require you to use your bank account to deposit and transfer money, or to receive and reship goods. You may be participating in a larger fraud scheme, which could even be a crime.

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4. Investment-Related Scams

Investment-related fraud and scams are not the most common, but they can be the most expensive. According to the FTC, the median loss per report was $9,360, with total losses exceeding $5.84 billion in 2024.

Investment-related scams and fraud can occur when you pay for tips, seminars, courses, or programs that promise to teach you how to make money or invest on your behalf. These investments may involve cryptocurrency, stocks, bonds, real estate, gold, art, or other assets. They make you pay for training or a program, but provide nothing of value in return.

Scammers can also be more personal, as many romance scams involve investment-related fraud. They may have spent weeks or even months getting to know you before sharing investment tips. However, when you invest in the same cryptocurrency, stocks, or platform, you are actually sending money to the scammer.

How to Protect Yourself from Investment-Related Fraud

Never pay for a program or course that promises guaranteed returns — investing always involves risk.

Also, be wary of anyone trying to lure you with high-return investments, secret methods, inside information, or promises of passive income. If you are interested in an investment, the Financial Industry Regulatory Authority (FINRA) provides a range of tools and websites you can use to investigate the investment and its promoter.

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5. Internet Services

Reports related to internet services may cover fraudulent interactions with websites selling content, online advertising, online payment services, video games, virtual reality, and social networks. Fraud reports may also come from internet service providers misleading consumers about their service costs, speeds, or access.

How to Protect Yourself from Internet Services Fraud

Whether you are gaming or browsing social media, be cautious when interacting with others online. You also need to be wary of online marketplace scams and ads that direct you to fraudulent online stores — refer to the tips above for avoiding online shopping scams.

Additionally, be sure to monitor your monthly subscriptions and internet service charges to ensure you are not being overcharged or paying for canceled services.

6. Prizes, Sweepstakes, and Lotteries

Scammers may purchase online ads or contact you directly, claiming you have won a prize, sweepstakes, or lottery. They may ask for your name, address, Social Security number, or other personal information, claiming they need it to send you your winnings.

Alternatively, they may ask you to pay them for additional fees, say you can pay to increase your chances of winning, or ask for your bank or credit card account information.

How to Protect Yourself from Prizes, Sweepstakes, and Lottery Scams

If you do not remember entering a sweepstakes or lottery, you probably have not won anything. While you may need to pay to enter some types of contests or lotteries, legitimate sweepstakes do not require payment, and paying will not increase your chances of winning.

It is best to ignore any messages about prizes or winnings, especially if they ask for your personal information or payment.

7. Phone and Mobile Services

Fraudulent phone and mobile services may include issues with your phone plan or provider, mobile applications, unauthorized charges, and unsolicited messages.

For example, scammers may trick you into downloading malware, which then subscribes you to new services or sends texts and calls to premium numbers. They may also try to port or transfer your number to a new phone or carrier to intercept text messages, including those with one-time passwords used to log into your accounts.

How to Protect Yourself from Fraudulent Phone and Mobile Services

Only download apps from official app stores, and uninstall apps you no longer use. You can also regularly scan your device for malware using antivirus software and ensure your apps are updated. Additionally, contact your mobile carrier to see if you can enable SIM swap protection to prevent scammers from stealing your number. Also, regularly review your phone bill to ensure your carrier is not overcharging you.

8. Healthcare

The healthcare fraud category includes misleading and deceptive claims about medical and health-related products and services. These scams may involve products and schemes related to weight loss, disease treatments, prescription drugs, daily supplements, testing, and medical devices.

How to Protect Yourself from Healthcare Scams and Fraud

Many fraud reports relate to weight loss products and plans or medical treatments and therapies. If you want to lose weight or are struggling with a health issue, consult your primary care physician for safe and effective plan and medication recommendations.

You can also check the FTC's page on dietary supplements for examples of language fraudsters may use when promoting supplements.

9. Travel, Vacations, and Timeshare Plans

Scammers may promise free or low-cost vacation packages or mislead you into purchasing a timeshare. But upon arrival, you may find the accommodations are not as promised, or you may need to pay additional fees or taxes to claim the so-called free offer.

Even if legitimate, exiting a timeshare program can be very difficult. If you invest in a fraudulent new development, the project may never get past the financing stage.

How to Protect Yourself from Travel, Vacation, and Timeshare Plan Fraud

Be cautious when purchasing new services or vacation packages. You can search online using the name plus keywords like "scam" or "reviews" to learn about other people's experiences. Even if you are using a reputable service, be wary of anyone asking you to pay a deposit directly or use an uncommon platform for payment.

Tip: Be wary of robocalls offering travel-related deals or packages, as these may be part of a travel scam.

10. Mortgage Foreclosure Relief and Debt Management

Homeowners struggling to make their payments on time may become targets of mortgage relief scams. This form of fraud may involve false promises to negotiate loan modifications with lenders and charging upfront fees.

Scammers may claim to be housing counselors, lawyers, or even government representatives. They may also offer to buy your home, help you get back on your feet, or help you obtain a "bailout" loan.

They will often advise you not to communicate with your lender, lawyer, or other professionals, and may even ask you to make your mortgage payments directly to them. But once they get your money, they disappear without a trace.

How to Protect Yourself from Mortgage Foreclosure Relief and Debt Management Scams

It is illegal for a debt relief company or service provider to charge you for mortgage assistance or relief before you have received and accepted a written loan modification offer from your lender. If an individual or service provider tries to charge you any fee before that, it is likely a scam.

If you are having difficulty paying your mortgage, contact your lender or loan servicer to discuss relief options. Working with a housing counselor may also help. You can find legitimate housing counselors through the US Department of Housing and Urban Development.

Finally, if you believe you may need to hire an attorney to represent you, take your time to research and evaluate local options. Ask friends and family for recommendations, and ensure they are licensed to practice law in your state and have good client reviews.