By Milcah Tanimu
A recent report by the Global Anti-Scam Alliance (GASA) in partnership with Feedzai reveals that global scam victims lost an astonishing $1.03 trillion over the past year. This amount exceeds the GDP of nations like Switzerland, Poland, and Taiwan, emphasizing the massive impact of financial fraud worldwide.
According to the International Monetary Fund (IMF), only 19 countries have a GDP above $1 trillion. This makes the extent of these scam losses even more striking. The report highlights Brazil, Hong Kong, and South Korea as the hardest-hit regions, with citizens facing daily scam attempts.
In the United States, scam victims reported an average loss of $3,520—the highest per capita—followed by Denmark and Switzerland. The report also points to prevalent shopping scams in Kenya and Nigeria, with investment fraud becoming increasingly common in Nigeria. Meanwhile, South Korea and Vietnam report the lowest levels of online shopping scams.
Identity theft remains a major concern in countries like Australia and Mexico, where 25% of the population has been affected. According to Feedzai’s CEO, Nuno Sebastião, consumer confidence in spotting scams is growing, with 67% of individuals feeling more aware of scam tactics.
However, GASA’s data reveals that 70% of victims don’t report their financial losses. Scams affect mental well-being as well as finances, causing victims to feel vulnerable, fearful, and distrustful. Social media, text messaging, and phone calls remain the primary methods for scammers, who often use platforms like WhatsApp, Instagram, and Gmail.
AI technology has further enabled scammers to create convincing fake content, increasing their success. GASA’s report indicates that scams cost developing countries like Pakistan, Kenya, and South Africa 3-4% of their GDP. Even in developed countries like Italy, France, and the Netherlands, scams impact about 0.2% of GDP.
The 2024 *Global State of Scams* report, based on responses from over 58,000 consumers, reveals nearly half of the global population faces scam attempts weekly.
