IC3.gov: BEC Compromises and Romance Fraud 2018

The Internet Crime & Complaint Center, IC3.gov, publishes annual statistics about the crimes which have been reported to them during the previous calendar year.  The full report offers insights and analysis into current trends in cybercrime.  While it is widely acknowledged that cybercrime is dramatically under-reported, there are still some shocking trends when looked at on a state-by-state breakdown.

https://www.ic3.gov/media/annualreports.aspx

While the IC3 has been collecting Internet Crime complaints since 2000, starting in 2016, the IC3 provided a more detailed state-by-state breakdown than  ever before, allowing us to see how many victims experienced how much loss by crime type reported.  What is abundantly clear in the 2018 numbers is that the greatest dollar losses among the reports are coming from Business Email Compromise.

Previous reporting from IC3.gov called Business Email Compromise The $12 Billion Scam (July 12, 2018), although quite a bit of that figure is “exposed dollar value” – meaning how much the criminals COULD have lost.  Actually losses in the US in reports gathered by the IC3 included $1.3 Billion stolen from 21,723 domestic companies from October 2013 to May 2016, and $1.6 Billion stolen from 19,335 domestic companies from June 2016 to May 2018.

In the 2018 State by State breakdown, we find documentation of 19,140 companies losing $1.2 Billion stolen from companies in the 50 states, with millions more from DC, Puerto Rico, and other US territories.  That means on the average day in 2018, criminals stole $3.3 Million dollars from 52 US businesses per day.

StateBEC LossesBEC VictimsAverage Loss Per VictimVictims per 100,000 PopulationBEC Losses per 100,000
Alabama$7,542,651190$39,6983.89$154,314
Alaska$777,53966$11,7818.92$105,102
Arizona$19,364,749401$48,2915.72$276,008
Arkansas$3,187,56393$34,2753.09$105,765
California$190,033,2053032$62,6767.67$480,610
Colorado$16,742,410453$36,9598.08$298,598
Connecticut$23,879,979263$90,7987.33$665,551
Delaware$831,59843$19,3394.45$85,983
Florida$82,979,7681433$57,9066.73$389,589
Georgia$38,310,258446$85,8974.44$381,462
Hawaii$3,119,42678$39,9935.49$219,602
Idaho$3,001,04085$35,3064.85$171,077
Illinois$50,139,264745$67,3015.82$391,713
Indiana$19,845,399265$74,8883.96$296,559
Iowa$9,491,169126$75,3274.01$301,690
Kansas$11,152,097142$78,5364.88$383,035
Kentucky$3,399,040152$22,3623.41$76,314
Louisiana$6,785,75325$271,4300.54$145,618
Maine$767,59753$14,4833.97$57,455
Maryland$29,185,800414$70,4976.84$482,250
Massachusetts$46,339,422595$77,8818.67$675,502
Michigan$27,174,665451$60,2544.53$272,783
Minnesota$26,090,980312$83,6255.59$467,832
Mississippi$2,618,16357$45,9331.91$87,666
Missouri$13,191,920229$57,6073.75$215,766
Montana$1,793,38938$47,1943.58$168,821
Nebraska$5,419,13383$65,2914.3$280,891
Nevada$6,110,393217$28,1587.24$203,816
New Hampshire$2,783,48786$32,3666.4$207,259
New Jersey$54,132,347554$97,7126.22$607,647
New Mexico$3,158,731101$31,2754.84$151,280
New York$124,028,6391288$96,2966.59$634,671
North Carolina$29,829,247436$68,4164.25$290,450
North Dakota$427,37931$13,7864.08$56,228
Ohio$70,274,973539$130,3804.62$602,701
Oklahoma$5,425,276147$36,9073.74$138,013
Oregon$14,585,319272$53,6226.57$352,047
Pennsylvania$30,638,648715$42,8515.58$239,232
Rhode Island$3,543,031115$30,80910.85$334,248
South Carolina$8,077,180201$40,1854$160,772
South Dakota$836,73428$29,8833.17$94,843
Tennessee$16,072,195297$54,1154.42$239,312
Texas$117,017,1472094$55,8827.4$413,488
Utah $7,931,467201$39,4606.48$255,689
Vermont$687,93443$15,9986.89$110,306
Virginia$18,992,122662$28,6897.82$224,228
Washington$30,899,686507$60,9466.85$417,225
West Virginia$2,093,28050$41,8662.75$115,269
Wisconsin$10,588,528257$41,2004.43$182,718
Wyoming $1,637,11629$56,4525.02$283,367

The table above shows Business Email Compromise losses by state for calendar 2018, as based on complaints received by the team at IC3.gov.  These are losses experienced by BUSINESSES.  As you can see, the average loss by business varied greatly from state to state.  Alaska only lost $11,000 per BEC case, while Ohio had $130,000 lost per BEC case and the average BEC case in Kentucky lost $271,000!  The average loss from a BEC scam in the 50 states in calendar 2018 was $62,849 per business.  ($1,202,934,836 stolen from 19,140 businesses.)

The Top Ten states for BEC by the number of victims per 100,000 population are:
Rhode Island – 10.85
Alaska – 8.92
Massachusetts – 8.67
Colorado – 8.08
Virginia – 7.82
California – 7.67
Texas – 7.4
Connecticut – 7.33
Nevada –  7.24
Vermont – 6.89

The median number of BEC victims per 100,000 by state was 4.86.
(My home state of Alabama was #41 at 3.89)

The Top Ten states for BEC by average losses per victim are:
Louisiana – $271,430
Ohio – $130,380
New Jersey – $97,711
New York – $96,295
Connecticut – $90,798
Georgia – $85,897
Minnesota – $83,624
Kansas – $78,535
Massachusetts – $77,881
Iowa – $75,326

The median state for “average loss per victim was: $47,742.80
(Alabama was #33 at $39,689 average loss per victim)

The table below documents the category of fraud that the IC3.gov team labels as “Confidence Fraud / Romance”.  We know that Romance scams tend to target the lonely and the elderly in a disproportionate way, and are often enabled by social media.  While the average losses per incident are lower, realize that these are often losses experienced by a senior citizen, often representing the loss of their entire life savings!  The average loss from a Romance scam in the 50 states in calendar 2018 was $19,114.14.  ($296,613,212 stolen from 15,518 individual victims.)

StateRomance LossesRomance VictimsAverage Loss Per VictimVictims per 100,000 PopulationRomance Losses per 100,000
Alabama$1,796,307235$7,6444.81$36,750
Alaska$1,077,48785$12,67611.49$145,647
Arizona$7,975,890429$18,5926.11$113,681
Arkansas$1,332,727135$9,8724.48$44,220
California$72,355,4752105$34,3735.32$182,993
Colorado$4,782,810376$12,7206.71$85,301
Connecticut$3,956,170143$27,6663.99$110,261
Delaware$927,25948$19,3184.96$95,873
Florida$20,555,5381191$17,2595.59$96,508
Georgia$6,626,814361$18,3573.59$65,984
Hawaii$1,207,60859$20,4684.15$85,013
Idaho$1,463,39788$16,6305.02$83,422
Illinois$6,342,425433$14,6483.38$49,550
Indiana$5,390,594273$19,7464.08$80,554
Iowa$3,321,947165$20,1335.24$105,593
Kansas$2,047,571161$12,7185.53$70,327
Kentucky$1,527,974210$7,2764.71$34,306
Louisiana$2,063,99965$31,7541.39$44,292
Maine$883,37268$12,9915.09$66,121
Maryland$4,180,307316$13,2295.22$69,073
Massachusetts$8,004,624346$23,1355.04$116,685
Michigan$9,487,821461$20,5814.63$95,240
Minnesota$5,737,051287$19,9905.15$102,870
Mississippi$464,302108$4,2993.62$15,547
Missouri$5,849,242319$18,3365.22$95,670
Montana$500,41542$11,9153.95$47,107
Nebraska$1,782,49792$19,3754.77$92,392
Nevada$6,282,784254$24,7358.47$209,566
New Hampshire$1,068,70468$15,7165.06$79,576
New Jersey$8,275,788332$24,9273.73$92,897
New Mexico$2,608,857140$18,6356.7$124,945
New York$16,867,421782$21,5704$86,313
North Carolina$2,686,807432$6,2194.21$26,162
North Dakota$1,303,70235$37,2494.6$171,522
Ohio$9,085,821424$21,4293.64$77,923
Oklahoma$2,339,940164$14,2684.17$59,525
Oregon$2,713,780266$10,2026.42$65,503
Pennsylvania$10,029,245577$17,3824.51$78,310
Rhode Island$1,389,85451$27,2524.81$131,118
South Carolina$3,439,585187$18,3943.72$68,463
South Dakota$99,74731$3,2183.51$11,306
Tennessee$5,101,479268$19,0353.99$75,960
Texas$20,635,5591238$16,6684.37$72,917
Utah $2,380,004172$13,8375.54$76,725
Vermont$129,32225$5,1734.01$20,736
Virginia$9,128,873480$19,0185.67$107,779
Washington$2,062,979493$4,1856.66$27,856
West Virginia$1,367,24774$18,4764.07$75,289
Wisconsin$5,603,169391$14,3306.75$96,690
Wyoming $370,92233$11,2405.71$64,203

The Top Ten states by the number of Romance Scam victims per 100,000 population are:

Alaska – 11.49 victims per 100,000
Nevada – 8.47
Wisconsin – 6.75
Colorado – 6.71
New Mexico – 6.7 
Washington – 6.66
Oregon – 6.42
Arizona – 6.11
Wyoming – 5.71
Virginia – 5.67 
The median number of victims per 100,000 population was 4.79.
(Alabama was #25 with 4.81 victims per 100,000 population) 
The Top Ten states by average loss per Romance Scam victim are:
North Dakota – $37,248
California – $34,373
Louisiana – $31,753
Connecticut – $27,665
Rhode Island – $27,252
New Jersey – $24,927
Nevada – $24,735
Massachusetts – $23,134
New York – $21,569
Ohio – $21,428 
The median average loss per state was $17,858.
(Alabama was #44 with average Romance Scam losses of $7,634 per victim.) 



*** This is a Security Bloggers Network syndicated blog from CyberCrime & Doing Time authored by Gary Warner, UAB. Read the original post at: http://garwarner.blogspot.com/2019/04/ic3gov-bec-compromises-and-romance.html