Pennsylvanians Lost $65 Million to Investment Fraud Schemes in 2022

More than 600 Pennsylvanians lost over $65 million in investment fraud last year, ranking the commonwealth 12th in the nation for most money lost.

Pennsylvanians should think more carefully about where they invest their hard-earned money it seems, as the commonwealth was among the states hardest hit by investment fraud last year.

The state ranked 12th in the nation for the most money lost to investment fraud in 2022, according to a report from Carlson Law, an investment fraud law firm. A total of 609 residents lost more than $65 million. This came out to an average of $107,384 lost per victim.

Nationally, almost $8 billion was lost to investment fraud, an increase of more than 30% compared to 2021, according to the report. California ranked first for money lost to investment scams in 2022 with 4,928 victims losing $869 million. Florida came in second with 2,245 victims losing $306 million, while Texas (1,944 victims lost $235M), New York (1,451 victims lost $173M) and New Jersey (817 victims lost $110M) round out the top five.

The report used the 2022 FBI Internet Crime Report as well as the FTC Consumer Sentinel Network Databook to determine the most common fraud type along with which areas in the US are most at-risk.

The report credits the rise in investment fraud to a combination of traditional and modern tactics, with the bulk of the increase coming from cryptocurrency-related scams. Traditional scams such as Ponzi schemes (think Bernie Madoff), pyramid scams, and real estate fraud were also prevalent.

According to the report, the best way to avoid investment fraud is to never send money or give personal information to any entity or individual unless you have thoroughly researched their background, met them in person, and consulted with a third-party expert.