The Global Anti-Scam Alliance (GASA) and Feedzai, a fraud and financial crime solution company, have revealed that scammed victims have lost $1.03 trillion in 12 months, incurring an economic and emotional toll on businesses.
This was revealed in its 2024 Global State of Scams report, uncovering staggering insights into the prevalence and impact of scams worldwide. According to the report, Scammers stole over $1.03 trillion globally in 2023, surpassing the GDP of some countries like Switzerland, Poland, Nigeria, and Taiwan.
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“Shopping scams dominate in Kenya and Nigeria, while investment scams are rampant in Nigeria. In contrast, South Korea and Vietnam report the lowest levels of online shopping scams,” the report said.
The International Monetary Fund (IMF) noted that only 19 countries have a nominal GDP that exceeds $1 trillion. Its World Economic Outlook report projected Nigeria’s economy to grow by 2.9 percent in 2024, maintaining the same growth pace recorded in 2023.
Africa Pulse, a recent report by the World Bank, projected that Nigeria’s Gross Domestic Product (GDP) will expand by 3.3 percent in 2024 and slightly accelerate to 3.6 percent in 2025-2026, as it stood at $199.72 billion in the third quarter of 2024.
“Scammers continue to exploit popular platforms and channels. Phone calls and text messages remain the primary methods of initial contact, with WhatsApp, Instagram, and Gmail also frequently used,” GASA stated.
It added that countries like Brazil, Hong Kong, and South Korea face near-daily scam exposure. Conversely, nations such as Vietnam, Saudi Arabia, and China reported a noticeable drop in scam encounters, suggesting progress in local preventive efforts.
“Very little has changed in the last 12 months, as the world’s consumers bear the weight of another $1.03 trillion stolen by scammers. We must do more to combat these crimes, as they continue to erode trust in our systems and cause immense harm to individuals and economies,” stated, Jorij Abraham, Managing Director of GASA.
The report highlighted that 67 percent of people globally feel confident in their ability to detect scams, reflecting the success of some awareness campaigns. However, this could reveal complacency on the rise. Countries with high scam-detection confidence include China (84%) and Australia (72%), while Japan lags. Therefore, targeted educational efforts are needed in certain regions.
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“Consumers are becoming smarter at catching scams themselves. This year, 67 percent of respondents expressed confidence they could spot a scam. This strong display of confidence is a testament to banks and others’ efforts to educate consumers on the red flags to watch for that could be a scam,” said Nuno Sebastião, Co-Founder, Chairman, and CEO of Feedzai.
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