FTC Findings Show That Consumers Lost $470 Million To Text Scams

Recent data from the Federal Trade Commission (FTC) found that consumers lost $470 million to text message-based scams. This amount is five times higher than what was reported in 2020, even though the number of reports declined.

The most commonly reported type of text scam was fake package delivery, where scammers send alerts about a supposed issue with an incoming delivery. Bogus job opportunities were also common, including “task scams,” which involve promises of online work requiring people to complete a series of online tasks and end up with requests for people to invest their own money.

Other text message scams reported frequently were fake “fraud alert” messages sent to consumers warning about a suspicious purchase or an issue with their bank; warnings about fake unpaid tolls with a link to pay them; and “wrong number” scams that start as a seemingly misdirected message. Wrong number scams often evolve into a conversation with romantic undertones that can lead to investment and other scams.

The spotlight includes advice for consumers on how to handle text message scams, including:

• Forwarding messages to 7726 (SPAM). This helps your wireless provider spot and block similar messages.
• Reporting on either the Apple iMessages app or Google Messages app for Android users.
• Reporting to the FTC at ReportFraud.ftc.gov.

The spotlight also has advice on how to avoid text message scams:

• Never click on links or respond to unexpected texts. If you think it might be legit, contact the company using a phone number or website you know is real. Don’t use the information in the text message.
• Filter unwanted texts before they reach you. There are a few ways to block unwanted texts.