Kentuckians rank near the top of victims of investment fraud

Published 11:47 am Tuesday, June 27, 2023


A new study finds Investment fraud has become the No. 1 costliest type of fraud in the U.S. with a record $3.82 billion stolen in 2022, up from $1.6 billion the previous year, with Kentucky having one of the largest average victim losses.

According to the findings released Monday, Kentucky ranks No. 6 with the average victim losing $151,253 per incident last year.  In total, there were 128 victims with a combined loss of $19.3 million.

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Carlson Law, an investment fraud law firm, released its first annual study on the State of Investment Fraud in 2023after analyzing data from the FBI and the FTC released in 2023.

They say this alarming trend is leaving average hard-working Americans financially devastated.  Seniors lost nearly $1 billion last year forcing many to sell their homes after working their whole lives to accrue enough money to retire.  Even multi-million-dollar professional athletes from the NFL, NBA, MLB and NHL, were left bankrupt after losing $585 million from 2004-2018.

The study says the unprecedented rise is due to crypto-investment scams which stole a record $2.57 billion last year, traditional methods such as Ponzi and pyramid schemes, and artificial intelligence “deep fake videos” and “voice cloning” make you falsely believe you are investing with someone you know and trust.

The 10 states with the highest average losses per victim include: New Hampshire ($204,447), California ($176,463), Nebraska ($163,565), Wyoming ($161,472), Kansas ($156,790), Kentucky ($151,253), Montana ($149,920), Oregon ($144,386), Arizona ($143,829), and South Dakota ($142,691).

Kentucky also ranks number 48th for investment fraud, with 2.8 complaints filed per 100,000 residents.

Carlson Law says if you believe you are the victim of investment fraud, file complaints with the SEC, FTC and the FBI.

In the event your money cannot be recovered by the government, they say consider speaking with an investment fraud attorney. Many are willing to work on contingency and only get paid if your money is recovered.

Their bottom line: Investment fraud is currently the costliest type of fraud in America and the schemes are becoming increasingly complex as criminals fuse traditional tactics with online scams involving cryptocurrencies and artificial intelligence.  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.