A new report from the Consumer Federation of America (CFA) estimates Americans lose a staggering $119 billion annually to online scams—more than seven times higher than official figures. While the FBI’s Internet Crime Complaint Center (IC3) reported $16.6 billion in losses in 2024 (up 33% year over year), the CFA’s analysis accounts for underreporting and hidden costs, revealing a far more severe national crisis.

The message is clear: online fraud is a mainstream financial threat.

Social Platforms Are the Primary Gateway for Scams

The CFA report highlights that scams are increasingly concentrated on social media and messaging platforms, where fraudsters can easily reach users at scale. Data from the Better Business Bureau and the Global Anti-Scam Alliance shows that Meta platforms account for the majority of reported scam activity, with Facebook responsible for 57%, Instagram for 22%, and WhatsApp for 8%. Overall, 81% of scam attempts in the U.S. occur on platforms that offer direct messaging features.

Investigative reporting has also raised concerns about platform accountability. For example, major outlets including Reuters, The New York Times, and The Wall Street Journal have documented how scam ads and fraudulent content can persist at scale across large digital advertising ecosystems.

These findings reinforce a critical point: scams are not just happening online — they are being distributed through the same platforms people trust every day.

The States Most Affected: Billions Lost Regionally

The CFA report shows that scam losses are not evenly distributed across the country. Four states account for more than one-third of all estimated losses:

  • California: $18.1B
  • Texas: $9.7B
  • Florida: $7.7B
  • New York: $6.5B

These losses are driven by population size, wealth concentration, aging demographics, and targeted fraud campaigns aimed at vulnerable groups such as retirees and immigrant communities.

Even smaller states are heavily impacted on a per-capita basis, with places like Nevada, Wyoming, and the District of Columbia experiencing some of the highest individual financial losses in the country.

The Fastest-Growing Scam Categories

Americans are losing money across a wide range of fraud schemes, including:

  • Investment scams: $46.6B
  • Email phishing and targeting scams: $19.7B
  • Tech support scams: $10.4B
  • Delivery and nonpayment scams: $5.6B
  • Romance scams: $4.7B
  • Government impersonation scams: $2.9B

These schemes are becoming more sophisticated — increasingly powered by automation, social engineering, and AI-generated content that makes scams harder to detect.

A Growing Policy Debate Around Platform Responsibility

The scale of the crisis has sparked growing calls for regulatory action.

U.S. lawmakers including Senator Ruben Gallego and Representative Lou Correa have introduced proposals such as the SCAM Act, aimed at holding tech platforms accountable for fraudulent advertising and scam distribution.

New York Attorney General Letitia James and State Senator Andrew Gounardes have also emphasized the need for stronger enforcement and platform safeguards to protect consumers from digital fraud.

These policy discussions reflect a broader shift: scam prevention is no longer just a consumer issue — it’s a platform accountability issue.

Why This Matters for Identity Theft Protection

For companies like Enfortra operating in the identity protection and SaaS cybersecurity space, the implications are significant:

1. Scams are now identity-first attacks

Most modern scams rely on stolen or synthetic identity data, phishing, or impersonation — not just financial trickery.

2. Detection must move upstream

By the time money is stolen, the damage is already done. Protection must begin with early detection of suspicious identity activity, credential misuse, and behavioral anomalies.

3. Users need continuous monitoring

With scams occurring across social media, email, messaging apps, and AI-generated content channels, static protection tools are no longer enough.

The Bottom Line

The CFA report makes one thing unmistakably clear: online scams have become a national economic crisis, costing Americans far more than previously understood — and growing rapidly each year.

At Enfortra, we believe the future of digital safety requires more than awareness. It requires proactive identity protection, real-time monitoring, and smarter defenses built for an increasingly AI-driven threat landscape.

As scams evolve, protection must evolve faster.