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Report finds sharp increase in investment fraud cases in 2022

On Behalf of | Jul 13, 2023 | Investment Loss

A new study examines the rise in investment fraud cases and the methods being used to deceive victims, InvestmentNews reports.

The Federal Trade Commission released data showing that investment schemes cost Americans $3.82 billion in 2022, a sharp increase of 128% from the $1.67 billion stolen in 2021.

The FTC reported that more people filed reports about identity theft than any other type of complaint, followed by imposter scams.

Credit card fraud topped the list of identity theft scams, in which people’s information was misused with an existing credit card or when applying for a new credit card.

According to the data, nearly $2.7 billion was lost in 2022 to imposter scams, including people falsely claiming to be a romantic interest, the government, a relative in distress, a well-known business, or a technical support expert to get a consumer’s money.

Experts are also warning that artificial intelligence technology is contributing to the threat of investment fraud, with AI being used to generate so-called ‘deep fake’ videos of real people as a way of defrauding investors. Data from the FTC and the FBI indicated that scams involving AI are among the five most common types of investment fraud.

Mark Hurley, CEO of the cybersecurity firm Digital Privacy & Protection, was quoted as saying that fraudsters can clone the voice of a financial advisor and use it to call clients, while ChatGPT is being utilized for sending phishing emails. Investors are advised to always meet someone in person before investing with them, and to beware of ‘voice cloning’ when interacting via phone calls.

The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a no-cost evaluation of your matter.