American consumers lost a reported $470 million last year to scams that started with fraudulent text messages, according to Federal Trade Commission data released Wednesday.
The losses marked a 26% increase from 2023’s total of $373 million and a five-fold jump from 2020’s total of $85 million. The FTC says the numbers likely represent just a fraction of the actual money lost to scams because most financial scams go unreported.
At the same time, the number of scams reported has fallen in the past four years, dropping from 332,000 in 2020 to 247,000 last year, as the amount of money lost per reported scam jumped, the FTC says.
Scam texts have grown more popular with cybercriminals in recent years as consumers have shifted away from traditional email and laptops and are instead doing more with their phones. In addition, the minimalist nature and shortened, or hidden, links used in texting make scam messages harder to spot than they would be if sent as traditional emails.
The most common type of text scam reported to the FTC in 2024 were package-delivery scams, where cybercriminals attempt to impersonate a shipping company like UPS or Fedex, or a major retailer like Amazon. They send messages falsely claiming that there’s an issue with a delivery. They might say there’s a problem with the credit card paying for it or that the delivery address needs to be reentered.
Other common scams included fake job opportunities, including so-called task scams that start with offers of easy online work but often trick targets into “investing” their own money. Other messages take the form of bogus fraud alerts that claim there are suspicious purchases on their credit card or an unauthorized login to their bank account. Unpaid toll scams have also become popular with cybercriminals in recent months,
In addition, some romance scams get their start with seemingly benign messages that appear to be from a wrong number but then the scammer strikes up a conversation with the potential victim and tries to build an online relationship over time, eventually asking them for money,
Regardless of the scammer’s pitch, the messages are attempts to get the recipient to hand over money or cryptocurrency, banking or credit card information, login credentials for online accounts or even their most personal data like their Social Security number.
Tips for avoiding text scams
Don’t click on links in unsolicited texts. Even if a text looks like it’s actually coming from your bank or favorite store, you’re better off just going directly to that company’s website, rather than clicking on the link.
Think twice before you hand over sensitive information. Whether the request comes in the form of an email, text or phone call, think before you hand over your personal or financial data. Does the company or person requesting it really need it? Even if the request is legitimate, the less your information is out there, the better.
Set up text filters and block known scam numbers. You can do this on your Apple or Android phone, or through your wireless carrier. Third-party call-blocking apps can stop messages, too. Need help? The FTC recommends consulting the CTIA.
Report scam messages. You can do this through your Apple or Android messaging app but you also can copy the message and forward it to 7726 (SPAM). This will help your wireless carrier spot and block future scam messages. Messages also can be reported to the FTC at ReportFraud.ftc.gov.
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