Victims of scams worldwide have suffered unprecedented financial losses totaling over $1.03 trillion in the past year, according to a report by the Global Anti-Scam Alliance (GASA) and fraud prevention firm Feedzai.
This sum surpasses the entire Gross Domestic Product (GDP) of nations such as Switzerland, Poland, and Taiwan. Only 19 countries worldwide hold a GDP that exceeds this amount, underscoring the significant economic impact and global reach of fraud.
The report highlights that scam activity is most prevalent in Brazil, Hong Kong, and South Korea, where individuals encounter fraud almost daily. In the United States, victims face some of the highest financial losses, with the average individual losing around $3,520 per scam incident. Denmark and Switzerland follow closely, with average losses of $3,067 and $2,980 per victim, respectively.
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Different types of scams dominate various regions, with shopping fraud rampant in Kenya and Nigeria, while investment scams are particularly common in Nigeria. Identity theft is a prominent issue in Australia and Mexico, where approximately 25% of respondents report experiencing it. “Consumers are becoming smarter about spotting scams, with 67% expressing confidence in recognising fraudulent activity,” said Nuno Sebastião, CEO of Feedzai, who credited financial institutions and technology for boosting consumer awareness.
However, GASA’s findings reveal that over 70% of scam victims do not report their losses to authorities, further complicating efforts to tackle these schemes. The emotional toll on victims is also significant, with many experiencing lingering feelings of vulnerability and mistrust.
Social media, messaging platforms, and phone calls remain the primary avenues for scammers, who increasingly leverage AI-generated fake images, voices, and videos to deceive their targets. In several developing countries, including Pakistan, Kenya, and South Africa, scam losses now represent 3-4% of GDP, while developed nations like France and Italy report a lower but still concerning economic burden.
