October is Cyber Security Awareness Month, and we can’t overemphasize the importance of consistently taking action to reduce risks when online or using your phone.
Released in April, the FBI’s 2024 Internet Crime Report, compiled by the Internet Crime Complaint Center, logged 859,532 complaints of suspected internet crime, with reported losses exceeding $16 billion—a 33% increase from 2023.
In reality, many don’t report, and losses are likely much higher.
The top three cybercrimes by number of complaints reported by victims in 2024 were phishing/spoofing, extortion, and personal data breaches.
Individuals over 60 suffered the highest financial losses, totaling nearly $5 billion—almost double the $2.5 billion reported by those aged 50 to 59. They also filed the most complaints overall, highlighting their disproportionate vulnerability.
Victims of investment fraud, specifically those involving cryptocurrency, reported the most losses, totaling over $6.5 billion.
Digital assets
Confused about cryptocurrencies like Bitcoin or Ethereum? You’re not alone.
People use cryptocurrency for many reasons, such as quick payments, avoidance of bank transaction fees, or simply because it offers some anonymity. Many hold cryptocurrency as an investment, hoping the value rises.
Yet, paying with cryptocurrency does not come with legal protections that users of credit cards enjoy.
Payments aren’t reversible unless the recipient refunds a payment to the sender, and some information about your transaction will be public because it is recorded on a public ledger called a blockchain.
Steer clear of the crypto con
Growing interest in crypto has led to an explosion of scams and fraudulent activity.
Activities the Federal Trade Commission warns against include:
- Only scammers demand payment in cryptocurrency. No legitimate business is going to demand you send cryptocurrency in advance to buy something or protect your money.
- Avoid those who promise big profits. Those promising big returns with no risk are criminals.
- A so-called “investment manager” contacts you out of the blue. They guarantee a big profit if you buy cryptocurrency and transfer it into their online account. The promoted investment website looks real, but it’s fraudulent, and so are their promises. You’ll struggle to withdraw your money or be forced to pay high fees.
- You answer an ad for a job that only pays in Bitcoin. It’s all online, you work from home, and it sounds like easy cash. After receiving token payments, promised payouts never seem to be deposited into your account. But scammers keep asking you to deposit crypto to maintain your job, claiming big payouts are forthcoming.
Brenda Smith knows the experience all too well. Her story, recently featured in Business Insider, follows a strikingly similar pattern.
At 56, Ms. Smith, who holds a master’s degree and works in higher education, discovered what turned out to be a job scam she found on LinkedIn.
The scheme required upfront cryptocurrency payments—a huge red flag—that she only recognized after she lost about $15,000.
There are other scams out there, too. Have you ever received an unsolicited text message from an unfamiliar phone number? The scammer will ask a simple question, hoping you’ll respond, even if it’s to inform them that they have the wrong number.
They will apologize, then try to engage you in a conversation. As they gain your trust, they will share how you can accumulate riches, often through cryptocurrencies. Send them money and you’ll never see it again. Instead, ignore the text and block the number.
It's an unfortunate reality that scammers target the most vulnerable. They hope to find individuals who may be lonely or isolated and then use that natural human desire for connection as a way to extort money.
We want to arm you with the tools that can protect you from scams and fraudulent activity.
We deeply value our relationship with you, so if you have questions, we're here to provide additional information.