Rhode Island Consumers Lose About $200M To Scams Annually, Report Says

Rhode Island residents lose an estimated $200 million a year to online scams, according to a new report that shows Americans as a whole are being tricked out of $119 billion a year — far more than official estimates suggest.

The biggest culprits are Meta’s Facebook and Instagram, according to the new “scam economy” report from the Consumer Federation of America.

See also: 11-Year-old Charged With Threat That Caused Closure Of Woonsocket School: Cops

The $199 billion figure is about seven times the official losses of approximately $16.6 billion in 2024, according to FBI crime data; however, only about 14% of scams are reported due to factors such as embarrassment and confusion, the report said.

An estimated 83% of all online cybercrime losses are scams, with the rest attributed to other digital offenses such as ransomware or malware.

Online scams and crimes are a problem in every corner of America, but their impact is far from evenly distributed. The estimated losses equal about $349 per American per year. In Rhode Island, the average per capita loss is $152. The actual loss reported in 2024 is $23,597,036, compared with a true loss of $200 million, according to Consumer Federation of America estimates.

See also: Rhode Island Babies Wanted For HBO Historical Drama

In the 10 targeted states that account for half of all reported fraud nationwide, the losses are higher. These states — respectively, California, Texas, Florida, New York, Illinois, New Jersey, Georgia, Pennsylvania, Arizona and Washington — have high concentrations of major financial centers, technology hubs, large populations of older Americans and high wealth, all magnets for scammers.

Top scams identified in the report are:

• Investment scams: $46.9 billion
• Business email compromise scams: $19.8 billion
• Tech support scams: $10.5 billion
• Non-payment/delivery status scams: $5.6 billion
• Romance/confidence scams: $4.8 billion
• Government impersonation scams: $2.9 billion
• Employment scams: $1.9 billion
• Credit card/check fraud scams: $1.4 billion
• Real estate scams: $1.2 billion
• Other scams: $2.0 billion

See also: Taylor Swift's Genius Topic Of URI Humanities Fest Talk

The report found that social media platforms are among the most common entry points for scams. Meta’s Facebook (57%), Instagram (22%) and WhatsApp (8%) were most often linked to scams, according to Better Business Bureau data. The Global Anti-Scam Alliance also reports that 81% of scam attempts in the United States occur on platforms that allow users to send direct messages.

A common theme in the report was that even when scams are flagged, platforms do little to police them.

The report’s findings add to growing evidence that scam and fraud losses have jumped year after year, with reported losses to fraud totaling billions annually and growing rapidly.

The report’s authors said the findings underscore the need for better reporting systems, stronger protections on digital platforms, and more resources for enforcement and consumer awareness.

See also: Rhode Islanders Second Biggest Spenders On Engagement Rings In America: Study

“These statistics show that action across the economy — increasing platform liability, shutting down data brokers, improving reporting mechanisms, regulating generative AI and beefing up consumer protection enforcement resources — are not only exciting ideas but mandates for a safe future,” Ben Winters, the Consumer Federation of America’s director of AI and privacy, said in a statement.

Related: They’re Getting Dozens Of Scam Calls A Day And No One Can Make It Stop