Cities and states with the most fraud complaints in 2024 (2024)

As technology advances, the methods used by fraudsters and cybercriminals are becoming more sophisticated. This means consumers and companies must race to stay ahead — or risk becoming victims. With the use of credit cards being so common in the day-to-day lives of many Americans, identity theft and credit card scams specifically can negatively affect small businesses.

To better understand the impact of fraud across the U.S., we’ve analyzed data from the Federal Trade Commission (FTC)2 and the United States Census Bureau3 and surveyed 1,000 consumers to get an overview of fraud in the country. Our analysis includes information about the most commonly targeted states and cities and consumers’ opinions on the threat of fraud and the protection they’re offered.

Key findings

• According to a survey conducted with the Prolific online research platform, more than nine in 10 Americans believe instances of fraud in the U.S. have increased in recent years, while two-thirds have seen increases in fraud attempts in their own lives.
• That same survey shows that more than half (52%) of Americans aren’t confident that credit companies will protect them if they fall victim to fraud.
• The most common type of fraud complaint in the U.S. was related to credit bureaus, info furnishers and report users, with 862,506 complaints during this period — a staggering increase of over 600% compared to 2019.4 Fraud related to unspecified reports (489,839 complaints) and imposter scams (443,318) made up the top three.4
• While Miami sees the most credit card fraud in the U.S., it only sees the third most fraud overall, with 1,686.70 complaints per 100,000 residents.1, 6 Atlanta sees the most fraud in general, with 1,890.40 fraud complaints per 100,000, while Tuscaloosa came second with 1,844.00 complaints per 100,000.1, 6
• Florida is a hotspot for credit card fraud, with Miami seeing more than any other city at 372.7 complaints per 100,000 residents.1, 6 Multiple other cities in the state also appeared in the top 20.1, 6
• Cities from Alabama, Georgia and Louisiana also appear on the list, suggesting that credit card fraud is particularly common in southern states. Tuscaloosa (296.6 complaints per 100,000 residents) and Atlanta (250.5) round out the top three.1, 6
• In fact, Tuscaloosa, Alabama, saw a 359.8% increase in credit card fraud and identity theft complaints between 2019 and 2023, more than any other city.1, 3, 6 Fraud complaints at least doubled in over 120 cities across the U.S. between 2019 and 2023.1, 3, 6
• Credit card fraud is also prevalent in major cities like Los Angeles (235.1 credit card fraud and identity theft complaints per 100,000 residents), Las Vegas (209.3) and Philadelphia (200.0).1, 6

Fraud vs. credit card scams: What’s the difference?

Fraud is generally defined as using dishonesty to acquire sensitive information from someone, typically with the goal of causing a loss for the individual being defrauded. According to the Federal Trade Commission, some of the most common types of fraud include imposter scams, online shopping and negative reviews, fraud resulting from prizes, sweepstakes & lotteries and fraud related to business & job opportunities.

Credit card scams, specifically, are a type of fraud targeting credit card users with the explicit purpose of financial gain on the part of the scammer. While fraud is a much more general term that typically covers any sort of dishonest activity, a scam is a more specific, targeted act that seeks to exploit an individual.

The most common types of fraud

• Credit bureau fraud, imposter scams and online shopping scams are among the most prevalent.⁴
• Investment-related fraud and business and job opportunities fraud are also among the fastest -growing.4

According to FTC data,2 the most common type of fraud complaint received between January and September 2023 was related to credit bureaus, info furnishers and report users. There were 862,506 complaints in total during this period.2

This raises concerns about the security of credit information and data, identity theft and possibly the accuracy of credit reporting. It’s particularly worrying that this type of fraud seems to be the fastest growing, with a 615.70% increase in complaints compared to 20194 — more than any other type of complaint.

• The second most common type was unspecified reports (489,830 complaints). This highlights how complex and difficult it can be to define certain instances of fraud.4
• This could be an indicator that further education is required for the general population to understand and recognize fraudulent activity.4
• This is further highlighted by imposter scams — 443,318 complaints.4

Unfortunately, with the rise of e-commerce businesses, the fourth highest type of fraud by number of complaints was related to online shopping and negative reviews. Consumers and business owners both face challenges related to advertisem*nts, payment fraud, refunds and fake reviews. In fact, complaints related to online shopping and negative reviews have increased by 95.8% since 2019.4

Investment-related fraud and business- and job- opportunities-related fraud are also among the fastest-growing types, with complaints growing by 310.2% and 150.3%, respectively.4

Cities with the most fraud

• Fraud is rampant in the southeast, with Atlanta, Georgia; Tuscaloosa, Alabama; Miami, Florida; Sumter, South Carolina and Sebastian, Florida, having the five highest rates in the country.1, 6
• Minneapolis, Minnesota, Cincinnati, Ohio and Boston, Massachusetts, boast the fewest complaints out of all big cities.1, 6
• Louisiana is home to three cities in the top 10 that have experienced the biggest increases in fraud over the past four years.1, 3, 6

Fraud has become extremely common. There are many different types of fraud, including credit card fraud, mail fraud, healthcare fraud, internet fraud and driver’s license fraud. When looking at instances of fraud more generally, Atlanta, Georgia, saw the most complaints between January and September 2023 — with 1,890.40 complaints per 100,000 residents.1, 6

It narrowly beats these cities:1, 6

• Tuscaloosa, Alabama (1,844.00).
• Miami, Florida (1,686.00).
• Sumter, South Carolina (1,660.90).
• Sebastian, Florida (1,573.30).

By contrast, Minneapolis, Minnesota, Cincinnati, Ohio and Boston, Massachusetts, have the fewest complaints out of all big cities.1, 6 Las Vegas, Philadelphia and Orlando are also in the top 10 for both credit card fraud and fraud in general. However, the presence of Tampa, Sumter and Sebastian suggests these cities are seeing prevalence in a different kind of fraud.1, 6

Tuscaloosa saw the largest increase in fraud between 2019 and 2023, with 235.3% more complaints between January and September 2023 compared to the same period in 2019. The city also saw the highest increase in credit card fraud at this time. Sumter and Lafayette saw 212.6% and 196.4% increases in fraud complaints, respectively.1, 3, 6

This could possibly demonstrate specific vulnerabilities in these areas; again, there is a heavy concentration of increasing fraud in the south and southeast. Three of the top ten cities are in Louisiana alone, while Texas and Florida both have four cities where fraud complaints have at least doubled.

States with the most fraud

• Georgia, Nevada, Florida, Delaware and Maryland have the highest rates of fraud.2, 5
• The Dakotas, Iowa, Montana and Idaho have the lowest rates of fraud.2, 5

Georgia had the highest number of fraud complaints at 1,468.80 per 100,000 residents,2, 5 followed by:2, 5

• Nevada (1,380.30).
• Florida (1,363.00).
• Delaware (1,292.70).
• Maryland (1,216.50).

There is a bigger gap between the top five and all other states than anywhere else, suggesting this group is seeing a particularly serious problem with fraud. It also demonstrates a nationwide pattern where states in the south generally see higher complaints, while states in the northern and midwest regions see the lowest.

South Dakota saw the fewest complaints per 100,000 residents at 468.5, followed by:2, 5

• North Dakota (489.8).
• Iowa (512).
• Montana (610.5).
• Idaho (612.1).

Looking at the U.S. as a whole, the national average is 940 complaints per 100,000 residents across the country. The states closest to that average include:2, 5

• Alabama (982.8).
• New York (922.3).

Virginia (983.5) and Louisiana (985.2) are also both slightly above average, while California (905.1) and Colorado (883.2) are slightly below.2, 5 Alabama and Louisiana are near the national average where overall fraud is concerned, despite cities in both states seeing high numbers of credit card fraud complaints.

Cities with the most credit card fraud and identity theft

• Miami has more credit card fraud and identity theft than any city in the country.1, 6
• Los Angeles and Houston have notable problems with credit card fraud, while their overall fraud numbers are comparatively lower.1, 3, 6
• 126 cities have seen a 100% or more increase in credit card fraud and identity theft over the past four years.1, 3, 6

Credit card fraud is the most predominant type of identity theft. Credit card fraud and identity theft in general are more common in Miami, Florida, than any other city in the country, with the Florida city seeing 372.7 complaints per 100,000 residents between January and September 2023. The other states making up the top five cities for credit card fraud and identity theft complaints include:

• Tuscaloosa, Alabama (296.6).
• Atlanta, Georgia (250.5).
• Los Angeles, California (235.1).1, 6
• Las Vegas, Nevada (209.3).1, 6

Florida is the most represented state, with eight different cities in the top 50, followed by Louisiana and Georgia, each with five.1, 6 This shows that credit card fraud and identity theft are more prevalent in the southern U.S. While major cities like Los Angeles and Houston are high up on the list for credit card fraud, their numbers for overall fraud are comparatively lower.1, 3, 6

It’s no surprise that instances of credit card fraud are concentrated in urban and tourist areas. However, Florida’s prevalence on the list could also relate to its elderly population. According to Statista, Florida is second to only California when looking at the population of adults aged 65 or over,7 and fraudsters often target vulnerable and elderly people with limited knowledge of technology.

Cities where credit card fraud has doubled

In the United States, 24 cities have seen the number of general fraud complaints double.1, 3, 6 Moreover, 126 cities saw credit-card-specific fraud complaints double since 2019. Tuscaloosa had the second-highest rate of complaints between January and September 2023, only behind Miami.1, 6 Tuscaloosa saw the highest increase in credit card fraud and identity theft complaints in the country compared to the same period in 2019 — a 359.8% increase.1, 3, 6

Other cities saw the following increases:1, 3, 6

• Lewiston, Maine (333.3%).
• Monroe, Louisiana (306.1%).
• Springfield, Ohio (296.2%).
• Lafayette, Louisiana (276.7%).

The prevalence of fraud in southern cities is evident again, with four of the top five cities having the highest increase in credit card fraud complaints from that region. This contrasts with Miami, conspicuous by its absence from the list of cities that have seen at least double the amount of credit card fraud complaints since 2019. It could be an indicator of newly emerging credit card fraud hotspots.

Pennsylvania (10 cities) and Texas (eight cities) are represented more than any other states on the list.1, 3, 6 However, neither has a city in the top five with regard to an increase in credit card fraud and identity theft complaints.

Consumers have noticed the uptick in fraud in recent years

• 92% of respondents believe fraud is on the increase in recent years, and 67% have seen examples in their own lives.
• 95% believe AI will make fraud an even bigger problem.
• Consumers are split on whether banks and credit card companies can be relied on to protect them in instances of fraud; 48% say yes to credit companies, but only 36% are confident banks will.
• 70% of consumers consider fraud protection features and policies when choosing a credit card.

A survey on peoples’ opinions on fraud revealed that more than nine in 10 people in the U.S. believe instances of fraud have increased in recent years — with two-thirds of respondents saying they’ve seen this reflected in their own lives. Additionally, 95% of Americans believe AI will make fraud a bigger problem due to its generative capabilities.

There is not a great deal of confidence in institutions to protect consumers from fraud. Just under half of respondents thought credit card companies would take care of victims of fraud, and only 36% said the same for banks. With the survey, we found that:

• 14% of respondents had a negative experience with a credit card company when dealing with fraudulent charges.
• 67% of respondents consider fraud protection features when choosing a bank.

Sources

1. Federal Trade Commission – All Fraud and Other Reports – Top 5 Fraud Categories.
2. Federal Trade Commission – All Fraud and Other Reports – Top 10 Fraud Report Categories.
3. Federal Trade Commission – All Identity Theft Reports.
4. Federal Trade Commission – Imposter Scams.
5. United States Census Bureau – State Population Totals and Components of Change: 2020-2023.
6. United States Census Bureau – Metropolitan and Micropolitan Statistical Areas Population Totals: 2020-2023.
7. Statista – Senior population of the U.S. by state 2021.