SAN FRANCISCO—The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) recently released its annual Internet Crime Report. The report offers critical insights into the cyber threat landscape based on aggregated data from complaints reported during the last calendar year. The 2023 report reveals alarming increases in both the frequency and financial impact of online fraud perpetrated by cybercriminals. In 2023, the IC3 received a record number of complaints from the American public: 880,418 complaints with potential losses exceeding $12.5 billion, which is nearly a 10% increase in complaints and a 22% increase in losses compared to 2022. In the state-wide rankings, California received both the highest number of complaints and reported losses, with nearly 80,000 complaints and over $2 billion in losses.

Nationwide, the highest reported losses from any crime were attributable to investment scams last year. An investment scam is a deceptive practice that induces investors to make purchases based on false information. These scams usually offer those targeted significant returns with minimal risk. Investment fraud losses rose to $4.57 billion in 2023, a 38% increase from the previous year. Within these numbers, crypto-investment fraud losses rose to $3.94 billion in 2023, an increase of 53% from the previous year. The report shows that nationally and locally, victims 30 to 49 years old were the most likely group to report losses from investment fraud. Victims within the FBI San Francisco division’s territory lost nearly $400 million to investment scams last year. The county with the highest victim reporting and losses to investment scams was Santa Clara County, with 446 reported victims and over $152 million in losses.

The most frequently reported crime in 2023 was phishing schemes, which use unsolicited e-mail, text messages, and telephone calls purportedly from a legitimate company to request personal, financial, and/or login credentials. Over 298,000 complaints were filed about phishing schemes last year, which accounted for approximately 34% of all complaints reported. In the FBI San Francisco division’s territory, 364 complaints were filed with almost $1.5 million in losses. Santa Clara County filed the most complaints for this crime; however, Alameda County suffered the highest dollar amount for phishing schemes, with nearly $500,000 in losses.

“IC3 is an important tool for the FBI to combat the rising tide of cyber threats,” said FBI Special Agent in Charge Robert Tripp. “When the public reports incidents to the IC3, they provide valuable information that helps fill gaps crucial to advancing our investigations. It allows us to connect complaints, investigate reported crimes, identify trends, and share information with other FBI offices and law enforcement partners nationwide.”

The FBI recommends that the public frequently review consumer and industry alerts published by IC3. If you or your business are a victim of an Internet crime, immediately notify all financial institutions involved in the relevant transactions, submit a complaint to www.ic3.gov, contact your nearest FBI field office, and contact local law enforcement.

The full 2023 Internet Crime Report can be found here: https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf.