Wisconsinites lost an estimated $1.4 billion to online scams and cybercrimes last year, a spike of nearly 15% from the previous year, according to a new report from the Consumer Federation of America.

Data show the average Wisconsin household lost more than $500.

Ben Winters, director of AI and privacy for the federation, said social media platforms like Meta, Instagram and WhatsApp continue to be major sources of scam activity.

"We're at a circumstance where there is not enough enforcement, there is not enough wins against these scammers and there is all these tools that are making it easier and easier that are not getting shut down or prohibited," Winters explained.

The lack of artificial intelligence regulations is one big assist to scammers, Winters added. Federal officials were making headway on enforcement actions against scammers but he pointed out the Trump administration’s deep funding and staff cuts at consumer and financial protection agencies have contributed to a sharp increase in losses.

The research showed nationwide, older adults remain the most targeted demographic for scams, with reported losses averaging more than $38,000 per incident. Meanwhile, losses for people under 20 have nearly tripled.

Winters noted AI-generated content is becoming harder to detect and common tips for spotting scams are now outdated. He advised being extra cautious if you come across ads or links about financial transactions.

"Make sure to always pause when someone is asking you to do something quickly, to wire money quickly, to do something that seems a little bit off. You can always hang up. You can always wait before you respond to an email or a message," Winters recommended.

The federation is urging lawmakers to strengthen consumer protections. Winters added ongoing lawsuits and proposed legislation seek to hold tech companies more accountable for fraudulent content on their platforms.

Winters urged anyone who falls victim to a scam to report it to the Federal Trade Commission and local law enforcement immediately.

"Make sure you are talking about it and raising awareness, start to help people feel less shameful when they maybe experience it, because it's unavoidable. It's happening to everyone," Winters emphasized.

Source: Public News Service