Each year, hundreds of thousands of people across the United States become victims of different fraudulent activities. With the evolution of the internet and online services, fraudsters have found new ways to reach their victims. The provider of smart payables that elevate modern businesses, Tipalti, issued details regarding new research that probed into fraud across the country, unveiling details regarding the US states with the highest fraud rates and lowest fraud rates.
In its recent Financial Fraud Report, the company cited data from the FBI's Internet Crime Report which uncovered that the losses from cyberattacks and fraudulent activities in 2021 halted at $6.9 billion. In contrast, last year, the money lost to cyberattacks and fraud increased exponentially, hitting $10.2 billion.
The newly released report from Tipalti compared the number of victims of financial fraud in the US to other parts of the world. The overall number of such victims for 2022 was nearly half a million or 479,181. In contrast, the country with the second-highest number of victims was the United Kingdom with some 284,291 victims in 2022, representing 60% of the number of victims in the US. Canada was ranked third with some 5,517 victims of financial fraud last year.
Focusing on the US, Tipalti's report revealed that the state with the highest financial fraud rate is Nevada. The white paper estimated that in Nevada, there are 286 victims per 100,000 population. Although this is the highest rate out of any state, penalties for financial fraud are designated as a criminal offense in Nevada and are punishable by a fine of up to $5,000 and/or imprisonment of one up to four years. Still, the total penalty depends on the severity of the criminal offense.
Delaware was the state with the second-highest number of victims per 100,000 population with an average of 228. The US state with the third-highest fraud rate is Alaska, according to the new report. The victims in the state per 100,000 people are approximately 210.
On the other hand, Tipalti uncovered details regarding the states with the lowest number of victims per 100,000 population. According to the report, Mississippi has the lowest financial fraud rate out of any US state with 69 victims per 100,000 population.
Kansas ranked second with only 82 victims per 100,000 population. The US state with the third-lowest financial fraud rate is North Dakota. The recent report uncovered that the victims of financial fraud per 100,000 population in the state are 90.
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