The Credit Professional Fall 2015 | Page 3

Fraud: Reported—Actual—Projected Prevention/Protection By Linda K. Verges, CFCI The Annual Review of the Federal Trade Commission, released on March 6, 2015, reported that consumers lost $1.7 billion to scams and frauds, according to the reports filed with the FTC in 2014. The top ten categories of the 2.5 million complaints actually filed are: Identity Theft—13 percent. Of the 332,646 identity theft complaints filed:  more than 33 percent were related to Social Security, Medicare and other government benefit programs;  17 percent were related to fraudulent use of credit cards;  13 percent were related to phone or utilities fraud;  8 percent were related to money stolen from bank accounts Banks and Lenders—5 percent The $1.7 billion in reported losses is approximately $57 Sweepstakes and Lotteries— million more than the amount 4 percent reported in 2013. Auto-Related Complaints— 3 percent Debt Collection—11 percent  imposters Shop-at-Home/Catalog Sales 3 percent Scams—11 percent  telephone/mobile Electronic Media— 2 percent Services—7 percent Services— 2 percent Based on the number of complaints filed, the prime target areas or highest risk locales in the United States are Florida, Washington, Oregon, Missouri, Georgia, Nevada, Delaware and Michigan. Continued on page 4 October2015 3 The Credit Professional