• FTC: U.S. consumers lost $12.5B to fraud in 2024, up 25% from 2023, and bank transfers led in dollar losses at $2.09B, up 12% YoY
• Crypto fraud losses hit $1.42B, nearly unchanged from 2023 and payment app fraud rose 40% to 90,571 reported cases
• Credit cards saw the most reported fraud cases at 108,881
• Overall fraud cases fell slightly to 2.6M, but more consumers lost money

The value of consumer fraud losses in the U.S. soared to an all-time high of $12.5 billion in 2024, with bank transfers and payment apps emerging as the most damaging channels, according to a new report from the Federal Trade Commission.

The data shows a shifting and intensifying fraud landscape, where financial criminals are leveraging advanced tactics — and in many cases, artificial intelligence — to outpace banks, fintechs, and regulators.

Bank transfers and payment systems accounted for $2.09 billion in consumer losses last year, outstripping all other payment methods, including cryptocurrency, which logged $1.42 billion in fraud losses. 

Although crypto continues to be a magnet for illicit activity, its fraud-related dollar growth was nearly flat compared to 2023, while the value of losses through bank transfers rose by 12%.

Notably, the number of fraud cases linked to bank transfers actually declined by 8%, dropping to 47,336 reports. But the growing financial damage per incident underlines a dangerous trend: criminals are becoming more effective at convincing consumers to authorize large transfers.

This type of fraud – known as authorized push payment (APP) scams – has become a favorite among bad actors. These scams often originate through fake job offers, romance ploys, or impersonated tech support alerts, tricking consumers into sending funds willingly. 

While the number of total fraud reports fell slightly in 2024 to 2.6 million, down from 2.62 million in 2023, the proportion of consumers who lost money rose significantly. Thirty-eight percent of victims reported financial losses, up from just 27% the previous year, revealing a troubling increase in scam efficacy. 

Credit cards, while not the most expensive channel for fraud, did register the highest number of cases, with 108,881 reports totaling $275 million in losses — a 12% jump year-over-year. But it was the category of payment apps and services that saw the most dramatic rise in usage by fraudsters.

Cases involving apps like Zelle surged 40% to 90,571 in 2024, overtaking debit cards as the second-most common vehicle for reported fraud.

Zelle, operated by Early Warning Services and jointly owned by major U.S. banks, has been a particular lightning rod in the policy arena.

The Consumer Financial Protection Bureau sued the company and three of its bank owners in December over fraud liability concerns but dropped the lawsuit earlier this month after the incoming Trump administration signaled a shift in regulatory priorities.

Financial institutions are under pressure to respond more aggressively. Industry players are ramping up collaboration with law enforcement, experimenting with digital identity verification tools, and deploying artificial intelligence to detect fraudulent activity in real-time. 

But the same technologies are increasingly being used by fraudsters themselves, setting the stage for an AI-fueled arms race in payment security. 

The report’s findings also reflect a broader trend: as the number of ways to pay grows — including digital wallets, peer-to-peer apps, account-to-account transfers, and cryptocurrencies — the avenues for fraud grow with them.

The FTC’s report tallied fraud involving checks, wire transfers, gift cards, and other traditional payment methods as well, but the sharp rise in digital transaction fraud is what’s capturing the attention of risk managers and regulators alike.

Despite stepped-up efforts to educate consumers and monitor transactions, experts warn that actual fraud losses may be far higher than reported. 

Many victims, particularly those targeted through embarrassing or emotionally manipulative schemes, never come forward.

As fraudsters become more sophisticated and tech-savvy, the financial sector faces a daunting task: safeguarding a rapidly evolving payments ecosystem with tools that are still playing catch-up.