In 2024, consumers reported a staggering $12.5 billion in losses due to fraud, extortion, and online scams — a record high and a 25% increase over the previous year, according to a Federal Trade Commission (FTC) scam report.
Alarmingly, not only did the total amount of losses rise, but so did the number of victims who actually lost money. In 2023, 27% of individuals who reported experiencing extortion and other forms of fraud said they lost money. By 2024, that number had surged to 38%, signaling a troubling trend.
As our lives become increasingly intertwined with the digital world, the threat of extortion grows more prevalent and sophisticated. Scammers continue to adapt, finding new ways to exploit vulnerabilities and manipulate victims.
Some of the most common and devastating forms of extortion today include sextortion and other forms of blackmail, romance scams, fake product scams, and cryptocurrency-based scams. The latter includes the so-called “pig butchering” schemes, where scammers build trust over time before draining victims’ crypto wallets.
Reporting online extortion to the proper authorities is essential. It’s not just about recovering losses like cryptocurrency and other funds; it’s about helping law enforcement track down perpetrators, bring them to justice, and prevent others from falling victim to the same schemes.
Reporting Online Extortion to Law Enforcement
While reporting online extortion to law enforcement is critical, it’s equally important to report it to the right agency. Just like any large organization, law enforcement consists of multiple departments; each responsible for handling specific types of cases based on factors such as the nature of the crime, the method used, and where it occurred.
Because online extortion can take many forms, your situation may require notifying more than one agency. Reporting to the correct authority not only increases the chances of your case being investigated thoroughly but also helps build accurate data to track and prevent these evolving threats.
Here’s what you need to know about reporting online scams and how to determine which law enforcement or regulatory agency is best suited to handle your case.
How to Report Extortion to the FTC
The Federal Trade Commission (FTC) is the primary U.S. agency responsible for protecting consumers from deceptive, unfair, or fraudulent business practices, particularly in cases where there is no immediate threat to personal safety.
The FTC collects reports on scams such as identity theft, imposter scams, online shopping fraud, and romance or investment schemes. While the FTC doesn’t investigate individual cases, it uses the data to track patterns, alert the public, and support law enforcement efforts. Reporting online extortion to the FTC helps shut down scam operations and prevent future victims.
How to Report Extortion to the FBI
Most online scams and extortion cases should be reported to the FBI, especially when they involve significant financial loss, personal threats, or widespread criminal activity. The FBI operates the Internet Crime Complaint Center (IC3), which serves as the national central hub for collecting and analyzing reports of online crime, including extortion.
Submitting a complaint through IC3 not only helps initiate potential investigations but also allows the FBI to identify patterns and warn the public about emerging threats. The FBI may engage in digital evidence collection and e-discovery as part of the process of prosecuting the crime.
How to Report Extortion to the NCMEC When a Minor Is Involved
When a minor is involved in an online extortion case, it’s critical to report the online extortion to the National Center for Missing and Exploited Children (NCMEC). The NCMEC works closely with law enforcement to investigate and remove child sexual abuse material (CSAM) from the internet and to protect children from further harm.
Reporting online extortion helps ensure that the minor receives appropriate support and that offenders are identified, preventing them from committing more crimes. The organization also offers resources and assistance for families affected by online extortion.
Essential Institutions for Reporting Online Extortions
While contacting law enforcement is a critical first step in reporting online extortion, it shouldn’t be your only action. To fully protect yourself and help prevent others from becoming victims, it’s important to report the incident to additional organizations.
Your Bank or Financial Institution
It’s essential to report online extortion to your bank or financial institution as soon as possible. In some cases, banks can assist in recovering cryptocurrency, though success isn’t guaranteed. While some banks may be limited when it comes to recovery, they can still take important steps to secure your accounts and prevent future fraud. Reporting the incident helps create a formal record of the crime, which is crucial for your financial safety.
The Platform Where the Extortion Occurred
Reporting online extortion to the platform where it occurred can help halt or disrupt the scammer’s activity. When you notify the platform, administrators can investigate the situation and often suspend or ban the offender’s account. These scammers typically target many victims at once, so cutting off their access helps interrupt their operations. By reporting the incident, you’re not only protecting yourself; you’re also helping to prevent others from being victimized.
Other Platforms and Services
For romance scams, it’s important to report the incident directly to the dating app or social platform where the scammer initiated contact so their account can be investigated and removed. In the case of crypto scams, report the fraud to the cryptocurrency exchange or wallet provider involved, as they may be able to flag suspicious transactions or freeze assets if caught early. In some instances, they may even be able to recover the crypto funds that were lost.
Fake product scams should be reported to consumer protection agencies, such as the Better Business Bureau (BBB), the Consumer Financial Protection Bureau (CFPB), and your State Attorney General’s office. You should also report the scam to the website or marketplace where the product was sold. Reporting these scams helps regulators investigate fraudulent sellers and can lead to enforcement actions. Additionally, leaving reviews or warnings on relevant platforms is important to alert other consumers and prevent further victimization.
The Role of Digital Forensics in Extortion Investigations
Digital forensics is the specialized field of investigating and analyzing data from digital devices to uncover evidence of online crime, including extortion and fraud. In these cases, forensic experts may examine computers, smartphones, emails, chat logs, social media accounts, and even blockchain transactions to trace a scammer’s digital footprint.
Their work helps identify perpetrators, recover deleted or hidden data, and preserve evidence in a manner that can be used in legal proceedings. Digital forensics plays a vital role in building strong cases for law enforcement, recovering stolen funds, and protecting future victims.
How Digital Forensics Corps. Helps Victims of Fraud
At Digital Forensic Corp., our team of expert investigators specializes in preserving and analyzing digital evidence to support your case. Whether data has been lost, deleted, or hidden, we use state-of-the-art forensic tools to recover and document evidence that can assist law enforcement in identifying online criminals.
Our investigative techniques include IP tracing, metadata analysis, and social media forensics, allowing us to pinpoint a scammer’s location. In extortion cases, this information can be used as leverage to deter further threats. In romance scams, fake product schemes, and cryptocurrency fraud, we may even be able to recover stolen funds.
If you’ve been targeted by an online scam, don’t face it alone. Contact us today and let our experts fight back on your behalf.
