According to new data released by the Federal Trade Commission (FTC), scammers defrauded Americans of $470 million through text message scams in 2024, a five-fold increase from the losses reported in 2020.
The latest “Consumer Protection Data Spotlight” from the agency shows that while the number of fraud incidents decreased, the total amount of losses surged to a historic high. Fake package delivery notifications were the most commonly reported type of scam, followed by false job opportunities and fraudulent banking alerts.
“Wrong number” text messages – sometimes aimed at luring victims into romance or investment scams – also ranked among the most common scam tactics. In many cases, these messages appear to be sent from well-known companies, premium services, or financial institutions.
The FTC also warned that businesses and employees are increasingly becoming targets of scams. In another consumer alert released on Wednesday, the agency stated that scammers impersonate legitimate company names, promote false job opportunities, or send out fake notifications about fees and tolls.
A common scam is the creation of phony fraud alerts that appear to come from banks or credit card companies. These texts often contain urgent language and a phone number. Those who respond may be connected to scammers who pressure them to transfer funds to a so-called “secure” account – accounts actually controlled by scammers.
The agency warned that fraudulent unpaid toll notice scams often appear to come from official communications of highways or transportation authorities and claim immediate payment is needed to avoid fines or late fees.
The agency’s warning states: “Don’t act immediately. One of the scammers’ most common tricks is to apply pressure for quick action. If someone you don’t know contacts you via text claiming there is an urgent issue or demanding immediate payment, don’t rush to make payment, do some research, and verify with someone you trust.”
Businesses are encouraged to report impersonation behavior via ReportFraud.ftc.gov.
“Never click on links or reply to unexpected texts,” the agency added, “If you don’t recognize the sender or unexpectedly receive the text, you need to pause and conduct due diligence. Search for the company claiming to contact you using the contact information you know is correct, or find on the company’s verification website, call or email them directly. Do not click on links in the text or dial the phone number in the text.”
Suspicious texts can be forwarded to 7726 (SPAM) to help wireless carriers block future scam activities. Reports can also be submitted through the Apple iMessage or Google Messages app, or directly to the Federal Trade Commission.
The agency stated that they will continue to monitor this trend, which has caused significant losses to individuals and businesses.