2 separate studies identify top 10 states where fraud happens

Separate studies of fraud tracking databases determined which states are seeing the highest volume of incidents.

Turns out, Georgia and Delaware are topping the fraud charts.

First, Bader Scott examined the number of fraud cases reported in each state according to the Federal Trade Commission between last April and this March. The data was then scaled against each state’s population to ensure fair comparisons among states and investigate the areas with the highest volume per 100,000 residents.

Bader Scott said the data revealed that Georgia was the No. 1 state suffering from the highest rates of fraud. In the assessed period, researchers found there were more than 177,000 reports filed, resulting in a rate of 1,605 cases per 100,000 residents — a rate 62% above the national average of 988 per 100,000.

Bader Scott pointed out Georgia has frequently ranked highly in the past for fraud incidents, being named as the state with the highest rate of consumer fraud in 2022. At the time, this rate was just 1,550 per 100,000.

In the first quarter of this year, the FTC mentioned more than 4,300 reports of imposter scams with other top scams relating to online shopping, internet service fraud and business and job opportunities.

Bader Scott noted that second worst off is Georgia’s neighbor Florida, which saw a rate of 1,589 cases per 100,000 people. Florida’s residents reported over 359,300 incidents in this period and have consistently ranked in the top four places worst hit over the last five years.

As of the first three months of this year, Florida residents have already lost $171.1 million to fraudsters, according to Bader Scott.

The FTC’s report on 2024 data so far names imposter scams as the most common scam type here, with online shopping and negative reviews coming in second. In the first quarter, the FTC has reported more than 32,000 incidents of all types of scams, what Bader Scott called “a worrying figure.”

Commenting on the complete findings available online, Seth Bader from Bader Scott said through a news release: “Each year, the U.S. suffers losses of billions of dollars because of fraud, so it is important to remain aware of the diverse ways scammers can target you and your loved ones.

“A few factors contribute to why certain areas are worse off than others on this list,” Bader continued. “For example, economic vulnerability can play a part. Where people are more financially insecure, the lure of scams supposedly delivering high returns can seem more promising. Additionally, regions with older populations can face a larger number of cases as technology can be harder for older adults to navigate.

“The FTC reported a total of 2.6 million fraud reports in 2023, with an estimated $10 billion lost — an extra $1 billion in comparison to 2022,” Bader went on to say. “These figures are worrying, especially given that fraudsters have easy access to people now as they are targeting social media users meaning many more people are subject to their scams.”

Meanwhile, Callahan & Blaine obtained data from the National Incident-Based Reporting System (NIBRS) to determine the states with the highest rates of fraud offenses in 2022. The study then calculated the total average fraud crimes recorded by the NIBRS per 100,000 people, which determined the final ranking.

That study found that Delaware has the highest rate of fraud offenses, with a total of 713 fraud crimes recorded by the NIBRS per 100,000 people. The study found that identity theft is the most common type of fraud in Delaware, accounting for 261 offenses.

Virginia is named as the second most likely state to commit fraud, with an average of 464 offenses recorded by the NIBRS per 100,000 people in 2022. According to the study, the ‘false pretenses’ category is the most common offense type in Virginia, which includes crimes such as including false information on documents or selling an item by deceiving the buyer.

Callahan & Blaine CEO and president Edward Susolik commented on the firm’s study, which also is available online.

“It’s shocking to see the high fraud rates across the U.S. As online fraud seems to be becoming increasingly prolific, it’s clear that stricter regulations need to be put in place to drastically lower the amount of fraud, especially in the digital age of our society,” Susolik said in a news release.

“It should be widespread information that fraud can have severe consequences, such as fines and prison sentences. Even scams circulating on a smaller level, such as email hijacking or phone scams, can result in severe repercussions, and potential scammers must be aware of this. The correct procedure for reporting potential fraud cases should also be common knowledge in each state,” he continued.

“It’s also essential to take the correct safety precautions regarding online banking. Implementing multi-factor authentication is a fantastic way to reduce fraudulent transactions, allowing you to spot any suspicious activity quickly,” Susolik went on to say.

“Your social media accounts should also be thoroughly protected, as these are rapidly becoming a common target for scammers regarding account hijacking and impersonation. Staying vigilant and taking immediate action after spotting suspicious activity is essential when it comes to reducing fraud rates,” he added.

Source: Bader Scott

The top 10 states most likely to commit fraud:  

Source: Callahan & Blaine