Study reveals the most common types of scams in Wisconsin

• Wisconsin recorded $75.9 million lost to fraud in 2023, according to 29,481 reports made to the Federal Trade Commission.
• The most common scam category was Imposter Scams which accounts for 19% of all scam reports in the state.
• Identity Theft (15%) and Online Shopping and Negative Reviews (9%) are the state’s second and third most common types of fraud.

 

A new study has revealed the most common types of fraud in Wisconsin, with scams relating to Imposter Scams being the most common.

The study, carried out by QR code generator QRFY, analyzed data from the Federal Trade Commission (FTC) to discover the most and least defrauded states and which categories of scams are most common in each state.

Wisconsin was found to be the 45th most defrauded state in the US based on money lost relative to the state’s population size. $75,930,415 was lost to scammers in Wisconsin in 2023 across 29,481 reports to the FTC, which equates to $1.3 million lost per 100,000 residents.

The ten most common fraud categories in Wisconsin

1. Imposter Scams (19%)

Imposter scams are cases where someone tricks you into sending money while claiming to be someone they are not. This type of scam can be carried out over the phone, via email, or text and often involves a cybercriminal scammer posing as someone from a legitimate authority, such as your bank, claiming that you owe a certain amount of money. The scammer will then ask the victim to wire transfer their money or purchase a gift card. To avoid becoming a victim of imposter scams, never send money to someone you do not know. Do not give out personal information on the phone to people you do not know, even if they seem legitimate.

2. Identity Theft (15%)

Identity theft is a form of fraud that involves someone using your personal or financial information without your permission. It can damage your credit status and cost you time and money. Signs to look out for include bills for items you did not purchase, notice letters stolen from your mailbox or you stop receiving mail, and information on your credit report that you don’t recognize. To protect yourself from identity theft, do not share personal information like your bank account number, Social Security number, or date of birth if requested via text, email, or phone, and only go through companies’ official websites when making online purchases. Review your credit card and bank account statements, look for unauthorized or suspicious transactions, and report them immediately.

3. Online Shopping and Negative Reviews (9%)

Online Shopping and Negative Review scams take various forms, including people falling victim to fake stores. Consumers are often lured in by a fake ad placed on social media, and then place an order they never receive. Other online ads may appear from well-recognized brands but are scams instead. Remember, if a deal seems too good to be true, it probably is. Review fraud can include merchants posting fake positive reviews, suppressing honest negative reviews, and even paying for positive reviews, which deceive buyers looking for real feedback on products or services they spend their money on.

4. Credit Bureaus, Information Furnishers and Report Users (9%)

Information furnishers report consumer information to consumer reporting agencies (CRAs), including check verification services, credit bureaus, tenant screening companies, etc. Scams in this category refer to false, inaccurate, or incomplete information reporting. They also include improper use of consumer information. Information furnishers have legal obligations and rules under the Fair Credit Reporting Act (FCRA). Thus, it is essential to report inaccurate or improper information use as soon as possible.

5. Banks and Lenders (5%)

These scams refer to loans offered under false pretences. The scammer often hooks their target by making a significant promise they can’t deliver on, or by hiding the actual loan cost. Other banks and lender-related frauds aim to obtain personal or financial information, such as your SSN or credit card number, or charge exorbitant rates or hidden fees.

6. Prizes, Sweepstakes and Lotteries (5%)

These scammers use the pretext that you have won some sort of prize or lottery jackpot, in order to steal your personal information and money. The main warning sign for this type of scam, is having first to pay an amount of money to get your prize, where the scammer will ask you to pay through wire transfer, gift cards or cryptocurrency. If you are asked to give your financial information to claim any prize or sweepstakes, that is usually a good sign that you are dealing with a fraudster.

7. Auto Related (4%)

Auto-related scams take many forms. Fraudsters often use deceptive advertisements for cars sold at unbelievably low prices, which they post on various websites. They may even employ genuine vehicle photos sourced from other online listings to lend an air of authenticity. Additionally, these scammers may fabricate false addresses and provide other misleading information to make the advertisement and themselves appear legitimate. Scammers may also pretend to be representatives of car dealers, manufacturers, or insurers. These scammers will try to convince you that your auto warranty or insurance is on the verge of expiring and try to get your personal information.

8. Health Care (3%)

Scams of this nature may involve someone trying to sell you health insurance or prescription drugs at a cheaper rate. They may also try to charge you fees to navigate the health insurance marketplace – a service provided for free by law. It is important that you do not give your personal or financial information to anyone other than your healthcare provider or insurer. Be sure to verify any organization claiming to offer healthcare benefits before you sign up.

9. Internet Services (3%)

Internet service scams frequently manifest as phone calls, recorded messages, or text messages, enticing you with an opportunity to reduce your monthly payments. The individual calling, or the person who answers when you dial the provided number, insists that you must make a ‘prepayment’ towards your bill to be eligible for the offer. They may instruct you to pay using gift cards, citing a partnership with a well-known company for a promotional campaign, and request that you call them back with the gift card number. Once you comply, they extract not only the gift card information but also other sensitive personal details during the conversation.

10. Telephone and Mobile Services (2%)

This category can include subscriber fraud, where a scammer signs up for cellular service using fraudulently obtained customer information or false identification. This fraud also encompasses unauthorized use, tampering, or manipulation of a cellular phone or service. Scammers can clone your phone by stealing its electronic serial number (ESN) and mobile identification number (MIN), allowing them to rack up costly toll charges for which the actual phone user gets billed. It’s important to alert your service provider if you see unauthorized calls or charges on your account.

Commenting on the findings, a spokesperson for QRFY said:

“As scammers continue to employ ever more inventive tactics to get hold of your finances, it’s possible for people of any age to fall victim to fraud.”

“It is important to be mindful of whether the person you are speaking to is who they claim to be, and to thoroughly authenticate all official channels before disclosing any personal or financial details.”

“If you suspect that you or someone you know has fallen victim to fraud, promptly report the incident to the Federal Trade Commission (FTC) through ReportFraud.ftc.gov.”

ENDS

Sources:

The United States Federal Trade Commission: Consumer Sentinel Network Data Book (CY 2023)

Methodology:

This study used data from the Federal Trade Commission to find which states have reported the highest number of fraud cases, and how much money was lost by each state throughout 2023. It also looked at the ten most common types of fraud in each state.

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