Fraud Losses Hit Record $15.9 Billion in 2025 as Imposter Scams Surge

Key facts

• Fraud losses reached a record $15.9 billion in 2025, up from $12.5 billion in 2024.
• Investment scams accounted for $7.9 billion, nearly half of all reported losses.
• in 2025, up from 2.6 million in 2024.
• Imposter scams led to over $3.5 billion in losses, with more than 1 million reports.
• Social media was the top contact method by reported losses, exceeding $2 billion.
• Text messages were the most common contact method reported by consumers.
• Lois Greisman of the FTC testified before Congress on March 25, 2025.

Record Losses and Surging Reports

Fraudsters stole a record $15.9 billion from consumers in 2025, a sharp increase from $12.5 billion the previous year, according to new data from the Federal Trade Commission. in 2025, up from 2.6 million in 2024, signaling a relentless escalation in scam activity. The FTC attributed the spike in dollar losses to a sharp increase in consumers reporting large losses of $100,000 or more. Lois Greisman, associate director of the FTC’s division of marketing practices, presented the figures during testimony before the U.S. Congressional Joint Economic Committee on March 25, 2025. fraud losses have risen nearly 430% since 2020.

Investment Scams Dominate Losses

Investment scams were the most costly category, with consumers losing $7.9 billion — nearly half of all reported losses in 2025. These schemes often promise high returns but instead siphon funds through wire transfers, cryptocurrency, or payment apps. The FTC data underscores the growing sophistication of fraudsters who exploit digital platforms. The agency’s report highlights that scammers increasingly use social media to lure victims, with aggregate losses exceeding $2 billion when consumers identified social media as the starting point of the scam.

Imposter Scams: The Most Frequent Fraud

The most common form of fraud involves someone pretending to be someone else — a tactic known as imposter scams. In 2025, the about such schemes, with consumers reporting over $3.5 billion in losses. Scammers pose as officials from the FBI, FTC, IRS, or local law enforcement, as well as family members or romantic partners. Text messages emerged as the top contact method reported by consumers, while social media led in total losses. The ease of impersonation through digital channels has fueled the growth of these scams, making it harder for consumers to distinguish legitimate communications from fraudulent ones.

Federal Crackdowns and Prosecutions

The Department of Justice has been active in prosecuting fraud cases across the country. In one case, a former IRS revenue agent was charged with embezzling more than $12 million and money laundering while serving as CFO and controller of a New Jersey-based company. A grand jury indicted six defendants in a financial fraud scheme that impacted victims nationwide. Other prosecutions include an Oklahoma City woman sentenced to federal prison for a $1.1 million health care fraud scheme, and a California man sentenced to 144 months for fraudulently obtaining $59 million in public benefits and laundering proceeds to China. Two Massachusetts men pleaded guilty to their roles in a multi-million dollar bank fraud ring, and a pharmacy technician pleaded guilty to a $5.6 million health care fraud scheme involving illegal distribution of oxycodone.

State-Level Fraud Investigations

Beyond federal actions, state-level fraud investigations have gained attention. In Minnesota, federal investigators are probing whether Governor Tim Walz and other officials turned a blind eye to billions of dollars in human services fraud. A former Minnesota state trooper who investigated child care fraud alleged that he was bullied and intimidated by Department of Human Services officials for doing his job. On the West Coast, the Department of Justice launched a strike force to combat rampant healthcare fraud, including hospice schemes that have plagued Los Angeles. In New York, a father-daughter duo pleaded guilty to selling fake Banksy and Warhol artworks to prominent art auction houses, defrauding victims of at least $2 million.

The Scam Economy’s Broader Impact

The FTC’s data paints a picture of a thriving scam economy that adapts quickly to new technologies. The agency’s testimony before Congress underscores the need for stronger consumer protections and enforcement. With losses mounting and fraudsters employing increasingly sophisticated methods, the challenge for regulators and law enforcement is to keep pace. The rise in large-loss scams — those exceeding $100,000 — suggests that fraudsters are targeting wealthier individuals or using more elaborate schemes. The FTC’s Greisman warned that the trend is unlikely to reverse without concerted action from both public and private sectors.

Outlook and Open Questions

As fraud losses continue to climb, questions remain about the effectiveness of current countermeasures. The FTC’s data shows that despite increased reporting, the total amount lost is still growing. Law enforcement agencies are ramping up prosecutions, but the sheer volume of scams — 3 million reports in 2025 alone — presents a daunting challenge. The role of social media platforms in facilitating fraud is under scrutiny, with calls for greater accountability. Meanwhile, consumers are urged to remain vigilant, especially when contacted by unknown parties via text or social media. The battle against fraud is far from over, and the stakes have never been higher.

The bottom line

• Fraud losses hit a record $15.9 billion in 2025, a 27% increase from 2024.
• Investment scams were the largest category, costing consumers $7.9 billion.
• and $3.5 billion in losses.
• Social media was the top contact method by losses, exceeding $2 billion.
• a 430% increase in fraud losses since 2020.
• Federal and state authorities are pursuing high-profile fraud cases across the U.S.