(Contributor) – While economies around the world have suffered, slowed down and actually stopped due to the COVID-19 pandemic, the fraud economy has flourished. Experts estimate that the annual global cost of fraud in 2020 will be just over $ 5 trillion – more than the gross domestic product of most countries.
But these were estimates before the pandemic, obtained in the conditions before the pandemic and the old norms. Experts believe that the actual amount in our new reality with COVID-19 is much higher. In some parts of the world, the level of fraud has risen by almost 20%.
The economy of fraud, like any other, is extensive, complex and full of qualified operators running it. Cybercrime is a major factor in the economics of fraud, with e-commerce fraud as a branch.
In the first year of the pandemic, e-commerce sales in the U.S. rose more than 32 percent to $ 791.7 billion as businesses and consumers turned to online shopping amid blockages, restrictions on social distancing, closures and anxiety. But where welfare is earned honestly, there is also the opportunity for bad actors to earn.
Wicked Reports has broken down 2020 states (including Washington, D.C.) from the FBI’s Center for Cybercrime Complaints Center to identify the states most affected by non-payment and e-commerce fraud, sorted by victim loss . Population data as of July 1, 2021 were taken from the U.S. Census Bureau to estimate the number of victims per 100,000 citizens in each state. Interestingly, the top five states most affected by these scams were not the states that shop the most online – which could increase the likelihood of being hit by them statistically – and not the states that do the most. -stores the least that could indicate a lack of familiarity with best e-commerce practices.
Vigilance and healthy skepticism can be your greatest asset in protecting your information online, especially in e-commerce settings. If the website looks suspicious or the deal looks too good to be true, leave. Or at least take the time to check it out carefully. E-commerce fraud is projected to grow by 105% by 2025.
Read on to see how your state has aged in the midst of an e-commerce scam, or read the national history here.
New Mexico in numbers
- Victim loss: $ 1,322 (40% lower than the national average)
- Victims per 100,000 citizens: 25 (41st place among all states)
- Total Cash Losses: $ 699,286 (highest number 41 among all states)
More than 60% of Internet users in the United States have faced cybercrime. According to the FBI’s Center for Cybercrime Complaints (IC3), the five most reported cybercrimes are phishing, non-payment / non-delivery, extortion, identity theft and identity theft. People over the age of 60 are more likely to be targeted and victims of cybercrime. In 2020 alone, this part of the population lost more than $ 966 million from internet fraud.
Non-payment and non-payment fraud was the second most common type of cybercrime in 2020. According to the FBI, in non-delivery situations where the victim is the buyer, payment is sent but the goods and services are never received. In the case of non-payment fraud, if the victim is a seller, items or services are sent but payment is never received. These types of fraud increased by 76% from 2019 to 2020. Just under 100,000 Americans have suffered from this type of e-commerce crime and lost a total of $ 217 million.
Keep reading to see which states are most and least affected by e-commerce fraud.
The states that have suffered the most from e-commerce fraud
1. Iowa: $ 4858 loss per victim (121% higher than the national average)
2. Georgia: $ 4,431 loss per victim (101% higher than the national average)
3. Utah: $ 3,713 casualties (69% higher than the national average)
States are the least affected by e-commerce fraud
1. Washington, DC: loss of $ 691 per victim (69% lower than the national average)
2. Kansas: $ 980 loss per victim (56% lower than the national average)
3. Kentucky: $ 1,085 loss per victim (51% lower than the national average)