The money lost in scams also grew by over 15%, from USD 47.8 billion in 2020, to USD 55.3 billion, in 2021.
According to the research, scams are no longer a ‘’Western disease” but are almost evenly distributed across the world, affecting all regions and continents. The study found that more than half of the Filipinos asked were targeted by fraudsters in the past three months, and 11% of them ended up as victims of scammers. Other developing countries, including Brazil, Nigeria, Kenya, and Saudi Arabia reported spikes in online scams, primarily via mobile phones.
As the technology of smart devices has advanced rapidly in the past years, most people from developing countries easily get access to the Internet via mobile phones, which makes them more exposed to fraud and scams. Mobile phone penetration in emerging African countries like Nigeria, Kenya, Egypt, and Congo is high or picking up, which means we should expect more fraud attempts in the following years in these countries.
The study showed that in Australia, only 13% of the scams are reported, while in Canada, only 5% of the cases reach low enforcement. The reasons behind these low rates include shame and fear of scammers who might reveal personal information about their victims online or targeting their close family members and friends.
At the same time, Israel estimated the number of scams reported is at around 9%, while The Netherlands and France claim scams are reported in 12-17% of the cases.
Social media also plays a key factor in luring potential victims for scammers, as the Pakistani authorities claim 23% of the reported online crimes started on Facebook. Other social media apps that still represent a safe haven for scammers include Instagram, WhatsApp, and Snapchat, with TikTok becoming a more prominent channel for scams. One in four people in the US reporting money loss due to scams also claim it all started with social media.
Out of all types of scams beginning on social media, most of them are romantic scams, with fraudsters luring in their victims using fake social media accounts of attractive people to engage into conversations with victims, create a bond, and then ask for money in exchange for continuing their relationship. In some cases, victims are persuaded to invest in stocks or crypto traded on shady/ fake platforms.
Finally, the report suggests that young people are targeted more and lose money more frequently than other age groups. However, the older generation is the one that is prone to lose the most money, out of all age groups. In Finland, individuals aged 18-30 were targeted in over 23% of the cases, and similar reports can be seen all over the world, not just in Europe.
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