Michiganders are losing a lot more money to online scams than we thought

A new report reveals that Michiganders are losing $1.7 billion annually to online fraud—and Meta is banking on it. 

In 2024, Michiganders reported more than $247 million in losses to online scams—but most people didn’t report their scams, a new report finds. It turns out that the amount lost is closer to $1.7 billion here in Michigan—with a B. What’s more, Meta and other platforms are banking profits off these scams.

The report, released today by the Consumer Federation of America, estimates that Americans nationwide lose at least $119 billion annually to internet-based scams and cybercrimes—a figure more than seven times the $16.6 billion reported to the Federal Bureau of Investigation in 2024. 

“One of the biggest problems in fully understanding the scope of these scams is underreporting,” wrote Ben Winters, director of AI and privacy at Consumer Federation of America, in the report. 

Because of fragmented reporting and communication, in addition to the devastation, embarrassment, and confusion caused by online scams, only about 14% of victims of online scams and financial fraud report it to authorities, Winters said. 

According to the report, the most costly scams across the US were:

• Investment scams: $46.6 billion
• Email-targeting scams: $19.7 billion
• Tech support scams: $10.4 billion
• Nonpayment or delivery scams: $5.6 billion
• Romance scams: $4.7 billion
• Government impersonation scams: $2.9 billion 

Michigan Impact

In Michigan, residents reported about $247 million in scam-related losses in 2024, according to data from the FBI’s Internet Crime Complaint Center. However, after accounting for underreporting, the CFA report estimates the true loss for the Great Lakes State may be closer to $1.7 billion, or about $170 per resident. 

The report highlights that Michigan’s manufacturing base and large population of auto-industry retirees are vulnerable to online scams like employment and pension-related fraud. 

Where do most scams happen?

Surveys from the Global Anti-Scam Alliance and the Better Business Bureau found that most scam reports originate on social media, with platforms that offer direct messaging functions used in 81% of scam attempts in the US.

Among the most frequently used platforms for these scams were Meta services, specifically Facebook, Instagram, and WhatsApp. However, instead of taking action and helping those who fell victim to scams on its platforms, internal documents reveal that Meta is banking on these scams to increase its revenue. 

Internal documents reviewed by Reuters in November 2025 revealed that Meta platforms projected about 10% of their 2024 revenue (roughly $16 billion) would come from ads promoting scams and banned goods. The investigation also reported that Meta directed its own staff not to take action that would threaten more than 0.15% of the company’s revenue. Additional reporting from the Wall Street Journal called Meta “a cornerstone of the internet fraud economy” after finding that the company allows suspicious advertisers to accrue up to 32 automated “strikes” for financial fraud before it bans their accounts. 

Related: Meta’s ‘teen safety’ tools are failing Michigan kids—and Republicans aren’t helping

How do we stop it? 

Elected leaders are responsible for holding tech platforms accountable for the harms they cause using legislation at the state and federal levels, but what does that look like? 

“While this issue is complicated to solve completely, there are significant unrealized opportunities for legislators, enforcement agencies, and industry to step up to address it,” Winters said. 

The CFA report recommends mandating that tech companies be more transparent in their quarterly reports by disclosing online scams found on their platforms. This would include the total number of scams, the types of scam incidents reported by users, the number of fraudulent ads or accounts removed, and a list of identified repeat offenders or scam networks. 

Other recommendations include creating safer design features on these platforms that protect user privacy and security, and empower users to report fraud when they see questionable content online. 

Sen. Mallory McMorrow (D-Royal Oak) says the CFA’s report should be a “wakeup call” to elected leaders.

“This report paints a grim picture of something we all intrinsically know – bad actors run rampant on social media. Scams are everywhere. The true cost should be a wakeup call to elected leaders to hold tech companies accountable for reining in scammers, especially in a moment when Michiganders truly cannot afford it,” said Sen. McMorrow in a press release.

“Michiganders are being robbed in plain daylight. We can’t just let this slide as “the cost of doing business” with Big Tech.”