Pennsylvania ranks No. 12 in the U.S. in losses to investment fraud in 2022, according to a study released by investment fraud firm Carlson Law.
Pennsylvania lost $65 million to investment fraud, which according to the study has become the No. 1 costliest type of fraud in the U.S. with a record $3.82 billion stolen in 2022, a total representing a rise of $1.56 billion from 2021.
Carlson Law’s study, “The State of Investment Fraud,” is based on data released this year by the Federal Trade Commission (FTC) and the FBI. Three metrics were analyzed in all 50 states and D.C.:
- Total number of victims and monetary losses.
- Highest average losses per victim.
- Highest rates of investment fraud.
Victims in Pennsylvania lost an average of $107,384, the No. 30 most in the nation, while the state has the No. 27 highest rate of investment fraud with 4.7 complaints filed per 100,000 residents.
Seniors across the U.S. lost nearly $1 billion last year. Professional athletes from Major League Baseball, the National Basketball Association, National Football League, and National Hockey League lost a combined total of $585 million from 2004-18.
According to the study, the rise in investment fraud is due to crypto-investment scams which stole a record $2.57 billion in 2022; Ponzi and pyramid schemes; and artificial intelligence, including “deep fake videos” and “voice cloning.”
The 10 states that lost the most money overall include California ($869M), Florida ($306M), Texas ($235M), New York ($173M), New Jersey ($110M); Maryland ($98M), Washington ($97M), Arizona ($88M), Illinois ($75M), and Massachusetts ($75M).
Among the key findings in the study are the following:
- California was the state most impacted overall, ranking first for total money lost ($869 million), second for average loss per victim ($176,463), and fifth for highest rate of investment fraud with 12.6 per 100,000 residents.
- Smaller States have the highest losses per victim, with New Hampshire ranking No. 1 ($204,447 lost per victim on average). In addition, smaller states such as Nebraska ($163,565), Wyoming ($161,472), and Kansas ($156,790) also made the top five.
- D.C. and ‘DMV’ Area Have Highest Rates of Investment Fraud, with D.C. ranking first with 26 victim complaints filed with the FBI per 100,000 residents in 2022. Investment fraud in the “DMV” area happens frequently with Maryland ranking second (17.5 per 100,000) and Virginia No. 18 (6.7 per 100,000).
The study stated that the four types of investment fraud to avoid in 2023 are AI “Deep Fake” and “Voice Cloning”, Crypto Initial Coin Offering, real estate “phantom property”, and Ponzi schemes.
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