Top five biggest fraud stories of 2024

2024 proved to be another eventful year in the ever-evolving world of fraud. It dominated the headlines this year, from the explosion of generative AI-powered scams, viral TikTok schemes, and even the persistent fear-mongering of election fraud.

Whether fraudsters were cashing in on fake crowdfunding campaigns, gaming loopholes in PPP relief programs, or leveraging new technologies to amplify their schemes, 2024 kept fraud fighters on their toes. 

Let’s look back at what we believe were the five biggest fraud news stories of 2024. 

PPP fraud is still heating up

During the height of COVID-19, fraudsters took advantage of the chaos by applying for PPP loans under fake identities and business entities. Years later, we’re still seeing the effects of the influx in fraud during the pandemic. In April, the DOJ’s COVID-19 Fraud Enforcement Task Force (CFETF) released its annual report, detailing its efforts to combat fraud related to pandemic relief programs. The report highlighted that over 3,500 defendants were charged, involving losses exceeding $2B, and over $1.4B in stolen funds have been seized. 

Read more findings from their report here 

TikTok teaches a crash course on how to commit check fraud 

Some TikTokers took a break from learning the newest dance craze to cash in on a different viral sensation: “the infinite money ATM glitch.” There’s just one problem: whether they knew it or not, these amateur fraudsters were committing check fraud. The vulnerability was quickly identified, along with many of the culprits. Hopefully, they learned that if something seems too good to be true, it probably is. 

Read more about the viral scam here 

Fraudsters target elder adults  

Elder abuse fraud, a type of scam in which fraudsters target individuals over 60, is a rapidly growing concern. In April, the FBI’s Internet Crime Complaint Center (IC3) released their Elder Fraud Report. The report cited that elder fraud went up 14% YoY, with associated losses totaling $3.4B, an increase of 11% compared to the previous year. 

Read more about IC3’s Elder Fraud report here 

Generative AI is the fraud landscape’s new darling, but is it worth the hype?

Move over, big data, cloud computing, and blockchain. GenAI was the industry’s favorite buzzword in 2024. While we were largely introduced to GenAI in 2022 when ChatGPT was launched, the use of GenAI really ramped up in 2024 — both for fraudsters and fraud fighters. 

Read more about how GenAI is changing the world of fraud

2024 financial fraud statistics: At a glance

Alloy compiled the latest fraud statistics into an infographic to examine the fraud trends impacting financial institutions and fintechs in 2024. These fraud stats use data from industry leaders like Thompson Reuters, Deloitte, and the Federal Trade Commission (FTC), as well as Alloy's 2024 State of Fraud Benchmark Report.  

Check out an overview of the 2024 fraud landscape here

Another year is in the books, but our fight against fraud continues!

This article originally appeared on alloy.com.