Nevada Tops U.S. Financial Fraud Rates - Tipalti Report
Date: 2023-11-25 Author: Dima Zakharov Categories: EVENTS
Nevada Leads in Financial Fraud:
Tipalti's recent report, based on 2022 FBI Internet Crime Data and census information, highlights Nevada as the state with the highest financial fraud rates in the U.S., reaching 286 victims per 100,000 people.
Legal Consequences in Nevada:
Despite these alarming figures, Nevada has stringent laws regarding fraud. The state considers fraud a criminal offense, with penalties ranging from one to four years in prison and fines up to $5,000 based on the severity of the fraud.
Types of Financial Fraud:
Phishing is the most prevalent type of financial fraud, affecting nearly 300,500 victims, followed by data breaching and non-payment/non-delivery scams. Phishing involves attackers tricking users into installing malware or divulging sensitive information.
Financial Losses in 2022:
Scammers posing as high-ranking individuals in organizations led to $2.7 billion in losses for Americans in 2022. The U.S. recorded over $52 million in total losses due to various forms of financial fraud.
Data Breaches and Security Incidents:
Personal data breaches, involving unauthorized access to confidential information, led to 1,800 security incidents in the U.S. in 2022, compromising 422 million records.
No Detailed Explanations:
The report, ranking Delaware and Alaska after Nevada, lacks in-depth explanations for the state's high fraud rates. Experts from the University of Nevada, Las Vegas (UNLV), propose reasons such as low financial literacy among residents, friendly incorporation legislation, and a large hospitality workforce contributing to fraud.
Expert Opinions from UNLV:
Jason Smith, UNLV's chair of the accounting department, suggests that Nevada's high fraud rates may stem from a lack of residents with financial literacy. Gregory Moody, UNLV's director of the cybersecurity program, points to the state's substantial gaming workforce and its small population as potential factors contributing to the fraud.
