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Federal Bureau of Investigation, 2016 Internet Crime Report , 2017. Unclassified.

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National Security Archive

May 23, 202644 min read

The FBI’s 2016 Internet Crime Report captures a watershed moment when cyber‑fraud surged to $1.3 billion in losses, prompting a shift toward public reporting and joint task forces.

Source: Federal Bureau of Investigation, 2016 Internet Crime Report , 2017. Unclassified. Date: Jun 1, 2017 Archive: Federal Bureau of Investigation.


Editorial Analysis

Original analysis by the DriftSeas editorial desk. The complete primary-source document, transcribed from the National Security Archive scan, appears in full below.

A Snapshot of the FBI’s Cyber‑Crime Pulse in 2016

The 2016 Internet Crime Report is the FBI’s annual accounting of complaints lodged through the Internet Crime Complaint Center (IC3), a portal created in 2000 to give ordinary citizens a direct line to federal investigators. Compiled in June 2017, the document reflects a moment when the agency was grappling with an unprecedented surge of financially motivated scams—business‑email compromise (BEC), ransomware, tech‑support fraud, and extortion—while simultaneously trying to embed state and local officers in its cyber task forces through Operation Wellspring.

The report emerged against a backdrop of rapid digitalization and a widening gap between the sophistication of criminal enterprises and the resources of law‑enforcement. By 2016, the FBI’s cyber‑crime docket had ballooned to nearly 300,000 complaints, with victims reporting more than $1.3 billion in losses. Those figures are not merely statistics; they reveal a turning point in which cyber‑enabled fraud moved from the periphery of criminal activity to the centerpiece of the FBI’s investigative agenda.

From Complaint to Collaboration

The introductory letter from Assistant Director Scott S. Smith underscores the dual nature of the IC3: a public‑facing intake mechanism and a conduit for intelligence sharing with private‑sector partners and the broader Intelligence Community. The language of “trustworthy and convenient” reflects a strategic effort to lower reporting barriers, while the emphasis on “partnerships” signals a recognition that the FBI could no longer shoulder the cyber‑threat alone.

Operation Wellspring, highlighted in the report, illustrates this collaborative pivot. Launched in 2013, the initiative places local law‑enforcement officers within FBI cyber task forces, giving them both training and primary case‑agent authority. The 2016 data—37 new investigations opened and 73 total since inception—suggests the program was still in a scaling phase, but the very fact that the FBI foregrounds it indicates a doctrinal shift toward a more distributed, community‑based response to internet‑facilitated crime.

What the Numbers Reveal Beneath the Headlines

Beyond the headline loss totals, the report’s breakdown of crime types offers a window into evolving attacker tactics. Business‑email compromise tops the loss chart, eclipsing even romance and confidence fraud, which traditionally dominate victim narratives. This shift signals a maturation of criminal infrastructure: perpetrators are now adept at infiltrating corporate email systems, leveraging legitimate‑looking communications to siphon funds directly from businesses. The prominence of ransomware—still in its early, pre‑Locky boom—hints at a nascent but rapidly expanding extortion model that would later dominate headlines.

Geographically, the top ten states by victim count and loss align with densely populated, economically vibrant regions, reinforcing the idea that cyber‑fraudists follow the money. The “Top 20 Foreign Countries by Victim” list, while not reproduced here, historically points to a concentration of attacks originating from Eastern Europe and Asia, underscoring the transnational nature of the threat and the need for diplomatic as well as law‑enforcement tools.

The report’s methodological notes—standardizing data, categorizing complaints, and acknowledging the limitations of self‑reported loss figures—signal an awareness of the evidentiary challenges inherent in cyber‑crime statistics. By being transparent about these constraints, the FBI attempts to lend credibility to its figures while inviting external analysts to scrutinize and improve upon the data collection process.

Legacy and Contemporary Relevance

The 2016 report sits at a crossroads. It captures the FBI’s first systematic attempt to quantify the financial impact of cyber fraud on a national scale, and it foreshadows the escalation of ransomware attacks that would explode in 2017‑2018. Moreover, the emphasis on public reporting and inter‑agency collaboration laid groundwork for later initiatives such as the Cybersecurity and Infrastructure Security Agency’s (CISA) “StopRansomware” campaign and the expansion of Fusion Centers for cyber‑threat intelligence.

For historians of technology and security, the document is a primary source that illustrates how a legacy law‑enforcement institution adapted its culture and operational model to an internet‑centric threat environment. It also provides a benchmark for measuring the effectiveness of policy interventions: comparing the 2016 loss figures with those from subsequent years reveals whether the FBI’s partnership‑driven approach succeeded in curbing the most lucrative scams.

In short, the 2016 Internet Crime Report is more than a ledger of complaints; it is a strategic snapshot of an agency in transition, grappling with the scale of digital fraud while pioneering collaborative frameworks that continue to shape U.S. cyber‑law‑enforcement today.


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FEDERAL BUREAU OF INVESTIGATION IC3 INTERNET CRIME COMPLAINT CENTER 2016 Internet Crime Report

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CONTENTS 2016 Internet Crime Report

2016 INTERNET CRIME REPORT

Table of Contents

Introduction...................................................................................................................3 About the Internet Crime Complaint Center .................................................................2 IC3 History.................................................................................................................2 The IC3 Role in Combating Cyber Crime...................................................................3 Collection ....................................................................................................................3 Analysis .......................................................................................................................4 Public Awareness.........................................................................................................4 Referrals.......................................................................................................................4 Supporting Law Enforcement........................................................................................5 IC3 Database Remote Access.......................................................................................5 Testimonials from Law Enforcement Database Users ............................................5 Successes ......................................................................................................................7 Prosecutions.............................................................................................................7 Operation Wellspring (OWS) Initiative .................................................................8 Hot Topics for 2016 ......................................................................................................9 Business Email Compromise (BEC) .........................................................................9 Ransomware ............................................................................................................10 Tech Support Fraud ................................................................................................11 Extortion .................................................................................................................13 2016 Overall Statistics ................................................................................................14 2016 Victims by Age Group .......................................................................................14 Top 20 Foreign Countries by Victim ..........................................................................15 Top 10 States by Number of Reported Victims ..........................................................16 Top 10 States by Reported Victim Loss .....................................................................16 2016 Crime Types .......................................................................................................17 2016 Overall State Statistics........................................................................................19 Appendix A: Crime Type Definitions...........................................................................23

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Internet Crime Complaint Center

Introduction

Dear Reader,

The FBI is the lead federal agency for investigating cyber attacks by criminals, overseas adversaries, and terrorists. With each passing day, cyber intrusions are becoming more sophisticated, dangerous, and common. We continue to transform and develop in order to address the persistent and evolving cyber threats we face.

The FBI's Internet Crime Complaint Center (IC3) provides the public with a trustworthy and convenient reporting mechanism to submit information concerning suspected Internet-facilitated criminal activity. The IC3 also strengthens the FBI's partnerships with our law enforcement and industry partners.

The 2016 Internet Crime Report highlights the IC3's efforts in monitoring trending scams such as Business Email Compromise (BEC), ransomware, tech support fraud, and extortion. In 2016, IC3 received a total of 298,728 complaints with reported losses in excess of $1.3 billion.

This past year, the top three crime types reported by victims were non-payment and non-delivery, personal data breach, and payment scams. The top three crime types by reported loss were BEC, romance and confidence fraud, and non-payment and non-delivery scams.

This year's report features a section on the importance of law enforcement collaboration and partnerships with the private sector and Intelligence Community. For example, the FBI continues to expand Operation Wellspring (OWS), an initiative through which state and local law enforcement officers are embedded in, and trained by, FBI cyber task forces and serve as the primary case agents on Internet-facilitated criminal investigations. Overall, OWS task forces opened 37 investigations in 2016 and have worked 73 total investigations since OWS was launched in August 2013.

We hope this report will assist you as we work in partnership to protect our nation and combat cyber threats.

[Scott S. Smith] Scott S. Smith Assistant Director Cyber Division Federal Bureau of Investigation

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About the Internet Crime Complaint Center

The mission of the FBI is to protect the American people and uphold the Constitution of the United States.

The mission of the Internet Crime Complaint Center (IC3) is to provide the public with a reliable and convenient reporting mechanism to submit information to the FBI concerning suspected Internet-facilitated criminal activity, and to develop effective alliances with industry partners. Information is analyzed and disseminated for investigative and intelligence purposes, for law enforcement and public awareness.

In an effort to promote public awareness, the IC3 produces this annual report to aggregate and highlight the data provided by the general public. The quality of the data is directly attributable to the information ingested via the public interface www.ic3.gov. The IC3 attempts to standardize the data by categorizing each complaint based on the information provided. The IC3 staff analyzes the data, striving to identify trends relating to Internet-facilitated crimes and what those trends may represent in the coming year.

IC3 History

In May 2000, the IC3 was established as a center to receive complaints of Internet crime. There have been 3,762,348 complaints reported to the IC3 since its inception. Over the last five years, the IC3 received an average more than 280,000 complaints per year. The complaints address a wide array of Internet scams affecting victims across the globe.¹

1,408,849 TOTAL COMPLAINTS

$4.63 Billion TOTAL LOSSES

2016 298,728

2016 1,450.7M

2015 288,012

2015 $1,070.7M

2014 269,422

2014 $800.5M

2013 262,813

2013 $781.8M

2012 289,874

2012 $525.4M


¹ Accessibility description: Image includes yearly and aggregate data for complaints and losses over the years 2012 to 2016. Over that time period, IC3 received a total of 1,408,849 complaints, and a total reported loss of $4.63 billion.

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Internet Crime Complaint Center 3

The IC3 Role in Combating Cyber Crime

WHAT WE DO

Central Hub to Alert the Public

Partner with Private Sector and with Local, State, Federal, and International Agencies

Host Remote Access Database for all Law Enforcement via the FBI’s LEEP² website

Victims Report Internet Crime to www.ic3.gov

Increase Victim Reporting Via Outreach

Collection

Millions of people in the United States are victims of Internet crimes each year. Detection is the cornerstone of determining the larger Internet crime picture. However, only an estimated 15 percent of the nation’s fraud victims report their crimes to law enforcement.³ This 15 percent figure is just a subset of the victims worldwide.

Victims are encouraged and often directed by law enforcement to file a complaint online at www.ic3.gov. Complainants are asked to document accurate and complete information


² Federal Bureau of Investigation. Law Enforcement Enterprise Portal (LEEP). https://www.fbi.gov/services/cjis/leep ³ The United States Attorney’s Office, Western District of Washington. Financial Crime Fraud Victims. http://www.justice.gov/usao-wdwa/victim-witness/victim-info/financial-fraud

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related to the Internet crime, as well as any other relevant information necessary to support the complaint.

In addition to reporting the crime via www.ic3.gov, complainants should take steps to mitigate further loss. Victims can take actions such as contacting banks, credit card companies, and/or credit bureaus to block accounts, freeze accounts, dispute charges, or attempt recovery of lost funds. Victims should be diligent in reviewing credit reports to dispute any unauthorized transactions and should also consider credit monitoring services.

Analysis

The IC3 is well positioned to be the central point for Internet crime victims to report and to alert the appropriate agencies of suspected criminal Internet activity. The IC3 reviews and analyzes data submitted through its website, and produces intelligence products to highlight emerging threats and new trends.

Public Awareness

Public service announcements (PSAs), scam alerts, and other publications outlining specific scams are posted to the www.ic3.gov website. As more people become aware of Internet crimes and the methods utilized to carry them out, potential victims are equipped with a broader understanding of the dangers associated with Internet activity and are in a better position to avoid falling prey to schemes online.

Referrals

The IC3 aggregates related complaints to build referrals, which are forwarded to local, state, federal, and international law enforcement agencies for potential investigation. If law enforcement conducts an investigation and determines a crime has been committed, legal

IC3 Core Functions⁴

⁴ Accessibility description: image contains the IC3 logo against a digital background. Core functions are listed in individual blocks: mitigation, complaint, analysis, deterrence, investigation, prosecution, prevention, and detection.

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action may be brought against the perpetrator. Each and every step is necessary to assist law enforcement in stopping Internet crime.

Supporting Law Enforcement

IC3 Database Remote Access

A remote search capability of the IC3 database is available to all sworn law enforcement through the FBI’s Law Enforcement Enterprise Portal (LEEP).

LEEP is a gateway providing law enforcement agencies, intelligence groups, and criminal justice entities access to beneficial resources. These resources strengthen case development for investigators, enhance information sharing between agencies, and are accessible in one centralized location.

This web-based access provides users the ability to identify and aggregate victims and losses within a jurisdiction, and to substantiate investigations.

The IC3 expanded the remote search capabilities of the IC3 database by granting users the ability to gather IC3 complaint statistics. Users have the ability to run city, state, county, and country reports and sort by crime type, age, and transactional information. The user can also run overall crime type reports and sort by city, state, and country. The report results can be returned as a PDF or exported to Excel. This search capability allows users to better understand the scope of cyber crime in their area of jurisdiction and enhance cases.

Testimonials from Law Enforcement Database Users

“I have published several reports based on trends that we were seeing since I was able to see the complaints. There were numerous instances of the quick reporting providing us with an opportunity to quickly mitigate circumstances or begin investigations before evidence was lost.

Thanks for the great service ...”

FBI Portland

“I had tremendous success using IC3. Without the availability and unlimited access to IC3 I would never have been able to identify the numerous suspects linked to a transnational criminal enterprise.”

Weld County, Colorado

“The remote query is beneficial because it allows me to query potential leads and victim complaints outside of normal business hours.

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"Since February 2014, I have been investigating an ongoing romance scam investigation. Separate from following fraudulently obtained funds through subjects' bank accounts, IC3 data has enabled me to quickly determine if these funds are derived from a potential victim or possible co-conspirator. In a number of instances, victims making deposits into these accounts have filed complaints through IC3. The basic information provided by victims has given me general background information when conducting an interview. IC3 data has also corroborated information developed during the course of this investigation."

Department of Homeland Security, Wisconsin

"IC3 has served as a centralized intake for Business Email Compromises (BEC) across the United States. Boston Field Office reviews BEC complaints made to IC3 on a daily basis. IC3 has made this process easy through its modifications to the complaint form this year. The information is always up to the minute, which is important in these types of schemes. IC3 also proactively reaches out to the field when large BEC complaints involving recently wired funds are filed. In one instance, IC3 proactively reached out to the Boston Field Office to alert us to a $1.8 million wire. Based on the early notification, Boston was able to take the necessary steps to successfully recover the entire amount on behalf of the victim. Lastly, IC3 continues to be a steady source of intel on the BEC threat."

FBI Boston
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Successes

Prosecutions

Real Estate/Rental Fraud: FBI San Diego The IC3 provided multiple complaints with a monetary loss of $232,258.58 to FBI San Diego in March 2015. The complaints reported that Geoffrey Paul Moncrief was using properties listed on various vacation home rental websites to defraud victims of money, on an average of $8,000 per person. Subsequent investigation showed that Moncrief took full payment from multiple parties without delivering the real estate. Moncrief was ultimately charged in San Diego Superior Court with 28 Counts of violating California Penal Code section 487(a), Grand Theft. Moncrief entered a guilty plea to 26 counts of and was sentenced in San Diego Superior Court to 365 days corrective custody, three years of formal probation, and restitution in the amount of $232,258.58.

Wire Fraud: FBI San Diego In February 2010, the IC3 provided multiple complaints to FBI San Diego reporting a monetary loss of $279,277. Complainants reported Christopher John Cozzie was selling pirated copies of infra-red imaging systems used in breast exams. Cozzie marketed these infra-red systems to include hardware, software, and training at a cost of approximately $35,000 per system but he either never delivered, or only partially delivered, on the orders.

Cozzie was indicted on ten counts of Wire Fraud, 18 U.S.C. 1343. He entered a guilty plea to one count of wire fraud and was sentenced to six months corrective custody, three years supervised release, and restitution in the amount of $279,277.

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Operation Wellspring (OWS) Initiative

OWS builds the cyber investigative capability and capacity of the state and local law enforcement community. Through close collaboration with local field offices, IC3 helps state and local law enforcement partners identify and respond to malicious cyber activity.

Key Components

  • Serves as a national platform to receive, develop, and refer Internet-facilitated fraud complaints.
  • Coordinates with FBI Cyber and Criminal components.
  • Trains state and local law enforcement officers on cyber crime investigations.
  • Addresses Internet-facilitated criminal cases not meeting most federal investigative thresholds by utilizing Cyber Task Force (CTF) state and local officers.

11

CTFs

The OWS Initiative was launched in August 2013 with the Salt Lake City CTF, in partnership with the Utah Department of Public Safety. OWS has expanded to 11 field offices: Albany, Buffalo, Kansas City, Knoxville, Las Vegas, New York City, New Orleans, Oklahoma City, Phoenix, Salt Lake City, and San Diego.

37

Total OWS Opened Investigations

The IC3 receives, on average, 800 complaints per day, and OWS offers CTFs a consistent resource to identify Internet fraud subjects and victims located throughout the world. Thirty-seven investigations were opened in 2016. Accomplishments included arrests, disruptions, and convictions. Financial restitutions were made and criminals were sentenced.

2,719

Victim Complaints

The IC3 provided 174 referrals to 11 CTFs based on 2,719 complaints. The total victim loss associated with these complaints was approximately $14.4 million.

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Hot Topics for 2016

Business Email Compromise (BEC)

Business Email Compromise (BEC) is defined as a sophisticated scam targeting businesses working with foreign suppliers and/or businesses who regularly perform wire transfer payments. The Email Account Compromise (EAC) component of BEC targets individuals who perform wire transfer payments. The techniques used in both the BEC and EAC scams have become increasingly similar, prompting the IC3 to begin tracking these scams as a single crime type in 2017. The scam is carried out when a subject compromises legitimate business email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.

Most victims report using wire transfers as a common method of transferring funds for business purposes; however, some victims report using checks as a common method of payment. The fraudsters will use the method most commonly associated with their victim’s normal business practices.

Fraudulent transfers have gone through accounts in many countries, with a large majority traveling through Asia. The scam began to evolve in 2013 when victims indicated the email accounts of Chief Executive Officers or Chief Financial Officers of targeted businesses were hacked or spoofed, and wire payments were requested to be sent to fraudulent locations. BEC/EAC continued to evolve, and in 2014 victim businesses reported having personal emails compromised and multiple fraudulent requests for payment sent to vendors identified from their contact list. In 2015, victims reported being contacted by subjects posing as lawyers or law firms instructing them to make secret or time sensitive wire transfers. BECs may not always be associated with a request for transfer of funds. In 2016, the scam evolved to include the compromise of legitimate business email accounts and requests for Personally Identifiable Information (PII) or Wage and Tax Statement (W-2) forms for employees.

The BEC/EAC scam is linked to other forms of fraud, including but not limited to: romance, lottery, employment, and rental scams. The victims of these scams are usually U.S. based and may be recruited to illegally transfer money on behalf of others. In 2016, the IC3 received 12,005 BEC/EAC complaints with losses of over $360 million.

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Ransomware

Ransomware is a form of malware targeting both human and technical weaknesses in an effort to deny the availability of critical data and/or systems. Ransomware is frequently delivered through various vectors, including phishing and Remote Desktop Protocol (RDP). RDP allows computers to connect to each other across a network. In one scenario, spear phishing emails are sent to end users resulting in the rapid encryption of sensitive files on a corporate network. When the victim organization determines they are no longer able to access their data, the cyber actor demands the payment of a ransom, typically in virtual currency such as Bitcoin. The actor will purportedly provide an avenue to the victim to regain access to their data. Recent iterations target specific organizations and their employees, making awareness and training a critical preventative measure. In 2016, the IC3 received 2,673 complaints identified as ransomware with losses of over $2.4 million.

Cryptolocker 2.0 Your personal files are encrypted

Info Your important files were encrypted on this computer: photos, videos, documents, etc. You can verify this by click on see files and try to open them. Encryption was produced using unique public key RSA-4096 generated for this computer. To decrypt files, you need to obtain the private key. The single copy of the private key, with which you will be able to retrieve the files, is located on a secret server at the Internet; The server will destroy the key within a time specified in this window. After that, nobody and never will be able to restore files. To retrieve the private key, you need to pay 0.5 bitcoins. Click proceed to payment to obtain private key. Any attempt to remove or damage this software will lead to immediate private key destruction by server.

INSTALLATION Victim opens a malicious email or visits a compromised website

CONTACTS SERVER Malware communicates with criminal's server

ENCRYPTION Malware encrypts victim's files

EXTORTION Message on victim's computer displays ransom amount to be paid via virtual currency

Without payment on: 11/24/2013 3:16:34 PM

See files << Back Proceed to payment >>

See footnote for accessibility description of image.5


5 Image depicts typical ransomware process: Step One – Installation: victim opens a malicious email or visits a compromised website. Step Two – Contacts Server: malware communicates with criminal's server. Step Three – Encryption: malware encrypts victim's files. Step Four – Extortion: Message on victim's computer displays ransom amount, to be paid via virtual currency.

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Internet Crime Complaint Center 11

Tech Support Fraud

Tech support fraud occurs when the subject claims to be associated with a computer software or security company, or even a cable or Internet company, offering technical support to the victim. Phony tech support companies utilize several different methods to contact or lure their victims. This list is not all inclusive, as the subjects are always varying their schemes.

  1. Cold call
  2. Pop-up or locked screen
  3. Search Engine Optimization: The subject pays to have their company websites appear in the top of search results when a victim searches for technical support.
  4. URL Hijacking / Typosquatting: The subject relies on mistakes made by the victim when entering a URL, which either causes an “error” or redirects to the subject’s website.

Once the phony tech support company or representative makes verbal contact with the victim, the subject tries to convince the victim to provide remote access to their device. Once the subject has control, additional criminal activity occurs. For example:

  • The subject takes control of the victim’s device and/or bank account, and will not release control until the victim pays a ransom.
  • The subject accesses computer files containing financial accounts, passwords, or personal data (health records, social security numbers, etc.).
  • The subject intentionally installs viruses on the device.
  • The subject threatens to destroy the victim’s computer or continues to call in a harassing manner.

A variation of the fraud, where the subject contacts the victim offering a refund for tech support services previously rendered, has increased. The victim is convinced to allow the subject access to their device and to log onto their online bank account to process the refund. The subject then has control of the victim’s device and bank account. With this access, the subject claims to have “mistakenly” refunded too much money to the victim’s accounts, and requests the victim wire the difference back to the subject company. In reality, the subject transferred funds among the victim’s own accounts (checking, savings, retirement, etc.) to make it appear as though funds were deposited. The victim wires money to the subject, thereby suffering a loss, and does not find out until later the “overpayment” was simply a shift of funds between the victim’s own accounts. The refund and wiring process can occur multiple times, thereby exacerbating the losses.

The IC3 has received thousands of tech support related fraud complaints. Victims have lost millions of dollars to the perpetrators. In 2016, the IC3 received 10,850 tech support fraud complaints with losses in excess of $7.8 million. While the majority of tech support fraud

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victims are from the U.S., the fraud was reported by victims in 78 different countries. The fraud affects victims of all ages; however, older victims are often the most vulnerable.

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Internet Crime Complaint Center 13

Extortion

Extortion is defined as an incident when a cyber criminal demands something of value from a victim by threatening physical or financial harm or the release of sensitive data. Extortion is often used in various schemes reported to the IC3, including Denial of Service attacks, hitman schemes⁶, sextortion⁷, Government impersonation schemes, loan schemes⁸, and high-profile data breaches⁹. Another tactic exploited in extortion schemes is the use of virtual currency as a payment mechanism. Virtual currency provides the cyber criminal an additional layer of anonymity when perpetrating these schemes. The IC3 continues to receive complaints regarding various extortion techniques. In 2016, the IC3 received 17,146 extortion-related complaints with adjusted losses of over $15 million.


Hitman Scheme: Described as an email extortion in which a perpetrator sends a disturbing email threatening to kill a victim and/or their family. The email instructs the recipient to pay a fee to remain safe and avoid having the hit carried out. ⁷ Sextortion: Described as a situation in which someone threatens to distribute your private and sensitive material if you don't provide them images of a sexual nature, sexual favors, or money. ⁸ Loan Scheme: Described as a situation in which perpetrators contact victims claiming to be a debt collector from a legitimate company instructing victims to pay fees in order to avoid legal consequences. ⁹ High Profile Data Breach: Sensitive, protected or confidential data belonging to a well-known or established organization is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so.

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2016 Overall Statistics

IMPORTANT STATS

IC3's Public Value

of Complaints

Reported Since Inception ('00) 3,762,348

Approximately 280,000 Average Complaints Received Each Year

$1.33 Billion Victim Losses in 2016

Over 800 Average Complaints Received Per Day

See footnote for accessibility description of image.10

2016 Victims by Age Group

Victims
Age Range11 Total Count Total Loss
Under 20 10,004 $6,698,742
20 - 29 46,266 $68,015,095
30 - 39 54,670 $190,095,752
40 - 49 51,394 $224,322,960
50 - 59 49,208 $298,145,628
Over 60 55,043 $339,474,918

10 Image depicts several key statistics regarding complaints and victim loss. A bar chart shows total number of complaints and overall victim loss for the years 2010 to 2016. For 2016, 298,728 complaints were received, with a total victim loss of $1.33 billion. The total number of complaints received since the year 2000 is 3,762,348. IC3 receives approximately 280,000 complaints each year, or more than 800 per day. 11 Not all complaints include an associated age range—those without this info are excluded from this table.

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Top 20 Foreign Countries by Victim

Excluding the United States^12

  1. Canada 3,772
  2. India 2,188
  3. United Kingdom 1,509
  4. Australia 936
  5. France 568
  6. Brazil 533
  7. Mexico 521
  8. China 473
  9. Japan 447
  10. Philippines 439
  11. Germany 350
  12. South Africa 337
  13. Turkey 286
  14. Spain 229
  15. Hong Kong 223
  16. United Arab Emirates 202
  17. Malaysia 193
  18. Singapore 192
  19. Nigeria 188
  20. New Zealand 187

12 Accessibility description: image includes a world map with circles corresponding in size to the total number of reports received from specific countries. The top twenty countries are included. Specific stats for each country can be found in the text table immediately below the image.

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Top 10 States by Number of Reported Victims 13

WA 6,874 CA 39,547 TX 21,441 IL 9,177 OH 7,052 NY 16,426 PA 8,265 VA 8,068 MD 8,361 FL 21,068

30,000+ 20,000 – 29,999 10,000 – 19,999 4,000 – 9,999

Top 10 States by Reported Victim Loss 14

WA $25.7M CA $255.2M CO $30.9M TX $77.1M IL $32.9M NY $106.2M PA $27.4M VA $49.2M GA $25.5M FL $88.8M

$100M+ $50M - $99M $30M - $49M $25M - $29M


13 Accessibility description: image depicts the United States, with the top ten states (based on reported victims) highlighted. These include California (39,547), Texas (21,441), New York (16,426), Florida (21,068), Illinois (9,177), Pennsylvania (8,265), Maryland (8,361), Virginia (8,068), Ohio (7,052), and Washington (6,874). 14 Accessibility description: image depicts the United States, with the top ten states (based on reported victim loss). These include California ($255.2M), New York ($106.2M), Florida ($88.8M), Texas ($77.1M), Virginia ($49.2M), Illinois ($32.9M), Colorado ($30.9M), Pennsylvania ($27.4M), Washington ($25.7M), and Georgia ($25.5M).

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2016 Crime Types

By Victim Count

Crime Type Victims Crime Type Victims
Non-Payment/Non-Delivery 81,029 Lottery/Sweepstakes 4,231
Personal Data Breach 27,573 Corporate Data Breach 3,403
419/Overpayment 25,716 Malware/Scareware 2,783
Phishing/Vishing/Smishing/Pharming 19,465 Ransomware 2,673
Employment 17,387 IPR/Copyright and Counterfeit 2,572
Extortion 17,146 Investment 2,197
Identity Theft 16,878 Virus 1,498
Harassment/Threats of Violence 16,385 Crimes Against Children 1,230
Credit Card Fraud 15,895 Civil Matter 1,070
Advanced Fee 15,075 Denial of Service 979
Confidence Fraud/Romance 14,546 Re-shipping 893
No Lead Value 13,794 Charity 437
Other 12,619 Health Care Related 369
Real Estate/Rental 12,574 Terrorism 295
Government Impersonation 12,344 Gambling 137
BEC/EAC 12,005 Hacktivist 113
Tech Support 10,850
Misrepresentation 5,436

Descriptors* Social Media 18,712 Virtual Currency 1,904

*These descriptors relate to the medium or tool used to facilitate the crime, and are used by the IC3 for tracking purposes only. They are available only after another crime type has been selected.

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2016 Crime Types Continued

By Victim Loss

Crime Type Loss Crime Type Loss
BEC/EAC $360,513,961 Misrepresentation $13,725,233
Confidence Fraud/Romance $219,807,760 Government Impersonation $12,278,714
Non-payment/Non-Delivery $138,228,282 Denial of Service $11,213,566
Investment $123,407,997 Tech Support $7,806,416
Corporate Data Breach $95,869,990 IPR/Copyright and Counterfeit $6,829,467
Other $73,092,101 Malware/Scareware $3,853,351
Advanced Fee $60,484,573 Ransomware $2,431,261
Personal Data Breach $59,139,152 Re-shipping $1,932,021
Identity Theft $58,917,398 Charity $1,660,452
Civil Matter $57,688,555 Virus $1,635,321
419/Overpayment $56,004,836 Health Care Related $995,659
Credit Card Fraud $48,187,993 Gambling $290,693
Real Estate/Rental $47,875,765 Terrorism $219,935
Employment $40,517,605 Crimes Against Children $79,173
Phishing/Vishing/Smishing/Pharming $31,679,451 Hacktivist $55,500
Harassment/Threats of Violence $22,005,655 No Lead Value $0
Lottery/Sweepstakes $21,283,769
Extortion $15,811,837

Descriptors*

Social Media $66,401,318 Virtual Currency $28,302,365

*These descriptors relate to the medium or tool used to facilitate the crime, and are used by the IC3 for tracking purposes only. They are available only after another crime type has been selected.

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Internet Crime Complaint Center 19

2016 Overall State Statistics

Count by Victim per State*

Rank State Victims Rank State Victims
1 California 39,547 30 Oklahoma 2,455
2 Texas 21,441 31 Utah 2,295
3 Florida 21,068 32 Kansas 1,963
4 New York 16,426 33 Arkansas 1,853
5 Illinois 9,177 34 New Mexico 1,702
6 Maryland 8,361 35 Iowa 1,560
7 Pennsylvania 8,265 36 Mississippi 1,467
8 Virginia 8,068 37 Alaska 1,259
9 Ohio 7,052 38 West Virginia 1,153
10 Washington 6,874 39 New Hampshire 1,126
11 Colorado 6,847 40 Idaho 1,120
12 Georgia 6,697 41 Hawaii 1,055
13 New Jersey 6,690 42 Nebraska 1,028
14 North Carolina 6,492 43 District of Columbia 938
15 Michigan 6,384 44 Maine 770
16 Arizona 6,349 45 Montana 744
17 Massachusetts 4,888 46 Puerto Rico 709
18 Tennessee 4,693 47 Delaware 703
19 Indiana 4,658 48 Rhode Island 663
20 Missouri 4,096 49 Vermont 440
21 Oregon 3,947 50 Wyoming 432
22 Nevada 3,775 51 South Dakota 376
23 Alabama 3,726 52 North Dakota 350
24 Wisconsin 3,662 53 Guam 50
25 South Carolina 3,500 54 U.S. Minor Outlying Islands 42
26 Minnesota 3,390 55 Virgin Islands, U.S. 42
27 Louisiana 3,002 56 Northern Mariana Islands 15
28 Kentucky 2,621 57 American Samoa 10
29 Connecticut 2,545

*Note: This information is based on the total number of complaints from each state, American Territories, and the District of Columbia when the complainant provided state information.

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20 2016 Internet Crime Report

2016 Overall State Statistics Continued

Loss by Victim per State*

Rank State Loss Rank State Loss
1 California $255,181,657 30 Arkansas $7,917,870
2 New York $106,225,695 31 Utah $7,304,226
3 Florida $88,841,178 32 Alabama $7,178,091
4 Texas $77,135,765 33 Kansas $7,011,898
5 Virginia $49,175,677 34 Connecticut $6,960,531
6 Illinois $32,938,414 35 Iowa $5,013,079
7 Colorado $30,893,224 36 Nebraska $4,289,411
8 Pennsylvania $27,432,303 37 Idaho $4,174,839
9 Washington $25,728,634 38 Mississippi $3,473,575
10 Georgia $25,477,413 39 New Hampshire $3,171,083
11 New Jersey $24,500,833 40 Montana $3,052,401
12 North Carolina $24,194,018 41 Hawaii $2,924,323
13 Michigan $24,174,754 42 West Virginia $2,576,787
14 Maryland $23,145,424 43 Alaska $2,276,799
15 Arizona $20,567,423 44 Puerto Rico $2,084,360
16 Ohio $20,410,854 45 District of Columbia $1,921,649
17 Massachusetts $20,324,110 46 Delaware $1,675,255
18 Missouri $15,886,334 47 Rhode Island $1,570,612
19 Oklahoma $15,412,650 48 Maine $1,192,677
20 Nevada $15,246,405 49 South Dakota $933,723
21 Oregon $13,767,261 50 Wyoming $913,941
22 Louisiana $13,290,356 51 North Dakota $859,856
23 Minnesota $12,634,057 52 Vermont $855,007
24 Tennessee $12,557,922 53 Guam $676,443
25 South Carolina $10,860,131 54 Virgin Islands, U.S. $155,114
26 Wisconsin $10,309,552 55 U.S. Minor Outlying Islands $59,066
27 Kentucky $9,381,342 56 Northern Mariana Islands $55,917
28 Indiana $9,266,381 57 American Samoa $300
29 New Mexico $8,701,654

*Note: This information is based on the total number of complaints from each state, American Territories, and the District of Columbia when the complainant provided state information.

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Internet Crime Complaint Center 21

2016 Overall State Statistics Continued

Count by Subject per State*

Rank State Subjects Rank State Subjects
1 California 15,240 30 Minnesota 1,084
2 Texas 11,309 31 Kansas 1,079
3 Florida 8,528 32 Mississippi 1,021
4 New York 7,636 33 Louisiana 919
5 Illinois 3,841 34 Connecticut 794
6 Georgia 3,614 35 Kentucky 777
7 Maryland 3,241 36 Wisconsin 774
8 Washington 2,779 37 Iowa 565
9 Virginia 2,603 38 Montana 547
10 Nebraska 2,444 39 Arkansas 532
11 New Jersey 2,439 40 New Mexico 406
12 Pennsylvania 2,433 41 Idaho 346
13 Ohio 2,414 42 West Virginia 312
14 Arizona 2,226 43 Hawaii 296
15 Michigan 2,178 44 North Dakota 287
16 North Carolina 2,074 45 New Hampshire 250
17 Tennessee 1,814 46 Maine 240
18 Nevada 1,748 47 Alaska 215
19 Colorado 1,628 48 Rhode Island 200
20 Massachusetts 1,443 49 Vermont 186
21 Missouri 1,384 50 Puerto Rico 163
22 South Carolina 1,374 51 South Dakota 146
23 District of Columbia 1,360 52 Wyoming 138
24 Oklahoma 1,283 53 U.S. Minor Outlying Islands 18
25 Utah 1,262 54 Guam 14
26 Indiana 1,246 55 Virgin Islands, U.S. 10
27 Alabama 1,226 56 Northern Mariana Islands 3
28 Delaware 1,149 57 American Samoa 2
29 Oregon 1,109

*Note: This information is based on the total number of complaints from each state, American Territories, and the District of Columbia when the complainant provided state information.

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22 2016 Internet Crime Report

2016 Overall State Statistics Continued

Subject Earnings per Destination State*

Rank State Loss Rank State Loss
1 California $74,917,042 30 Alabama $4,258,587
2 Texas $57,602,715 31 Connecticut $3,507,155
3 Hawaii $50,893,790 32 Utah $3,322,074
4 New York $46,039,475 33 Louisiana $3,278,684
5 Florida $38,158,286 34 Iowa $2,681,761
6 Georgia $24,821,761 35 Kentucky $2,660,183
7 Colorado $17,735,623 36 Kansas $2,616,821
8 Illinois $12,867,132 37 Delaware $2,560,784
9 Pennsylvania $12,557,106 38 Mississippi $2,428,942
10 New Jersey $11,834,991 39 Arkansas $1,969,540
11 Wisconsin $10,726,136 40 New Mexico $1,850,003
12 Oregon $10,660,242 41 Montana $1,517,688
13 Arizona $10,440,842 42 Idaho $1,347,658
14 Washington $10,215,859 43 Rhode Island $960,607
15 Virginia $9,940,731 44 West Virginia $793,537
16 Oklahoma $7,819,581 45 North Dakota $791,530
17 Ohio $7,651,776 46 Maine $518,573
18 Missouri $7,581,974 47 Alaska $517,609
19 Maryland $7,442,627 48 New Hampshire $484,082
20 Michigan $6,703,012 49 South Dakota $418,626
21 North Carolina $6,314,756 50 Vermont $263,594
22 Nevada $6,272,081 51 Wyoming $261,875
23 Massachusetts $6,119,164 52 Puerto Rico $227,168
24 Nebraska $6,049,631 53 Guam $210,000
25 Minnesota $6,018,709 54 U.S. Minor Outlying Islands $65,723
26 Indiana $5,188,886 55 Northern Mariana Islands $29,832
27 District of Columbia $5,143,770 56 Virgin Islands, U.S. $18,181
28 Tennessee $4,860,522 57 American Samoa $0
29 South Carolina $4,589,415

*Note: This information is based on the total number of complaints from each state, American Territories, and the District of Columbia when the complainant provided state information.

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Internet Crime Complaint Center 23

Appendix A: Crime Type Definitions

419/Overpayment: "419" is a term that refers to the section in Nigerian law associated with con artistry and fraud, associated with solicitation from individuals requesting help in facilitating the transfer of money. The sender offers a commission or share in the profits, but will first ask that money be sent to pay for some of the costs associated with the transfer. (Overpayment) An individual is sent a payment and instructed to keep a portion of the payment, but send the rest on to another individual or business.

Advanced Fee: An individual pays money to someone in anticipation of receiving something of greater in return, but instead, receives significantly less than expected or nothing.

Auction: A fraudulent transaction or exchange that occurs in the context of an online auction site.

Business Email Compromise/Email Account Compromise: BEC is a scam targeting businesses (not individuals) working with foreign suppliers and/or businesses regularly performing wire transfer payments. EAC is a similar scam which targets individuals. These sophisticated scams are carried out by fraudsters compromising email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfer of funds.

Charity: Using deception to get money from individuals believing they are making donations to legitimate charities and/or charities representing victims of natural disasters shortly after the incident occurs.

Civil Matter: Civil litigation generally includes all disputes formally submitted to a court, about any subject in which one party is claimed to have committed a wrong, but not a crime. In general, this is the legal process most people think of when the word "lawsuit" is used.

Confidence Fraud/Romance: An individual believes they are in a relationship (family, friendly, or romantic) and are tricked into sending money, personal and financial information, or items of value to the perpetrator or to launder money or items to assist the perpetrator. This is basically the Grandparent's Scheme and any scheme in which the perpetrator preys on the complainant's "heartstrings."

Corporate Data Breach: A leak/spill of business data which is released from a secure location to an untrusted environment. A data breach within a corporation or business where sensitive, protected, or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so.

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24 2016 Internet Crime Report

Credit Card: Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism (ACH, EFT, recurring charge, etc.) as a fraudulent source of funds in a transaction.

Crimes Against Children: Anything related to the exploitation of children, including child abuse.

Criminal Forums: A medium where criminals exchange ideas and protocols relating to intrusion.

Denial of Service: An interruption of an authorized user's access to any system or network, typically one caused with malicious intent.

Employment: An individual believes they are legitimately employed, and loses money, or launders money/items during the course of their employment.

Extortion: Unlawful extraction of money or property through intimidation or undue exercise of authority. It may include threats of physical harm, criminal prosecution, or public exposure.

Gambling: Online gambling, also known as Internet gambling and iGambling, is a general term for gambling using the Internet.

Government Impersonation: A government official is impersonated in an attempt to collect money.

Hacktivist: A computer hacker whose activity is aimed at promoting a social or political cause.

Harassment/Threats of Violence: (Harassment) Utilizing false accusations or statements of fact (as in defamation) to intimidate. (Threats of Violence) An expression of an intention to inflict pain, injury, or punishment, which does not refer to the requirement of payment.

Health Care Related: A scheme attempting to defraud private or government health care programs which usually involve health care providers, companies, or individuals. Schemes may include offers for (fake) insurance cards, health insurance market place assistance, stolen health information, or various other scams and/or any scheme involving medications, supplements, weight loss products, or diversion/pill mill practices. These scams are often initiated through spam email, Internet advertisements, links in forums/social media, and fraudulent websites.

IPR/Copyright and Counterfeit: The illegal theft and use of others' ideas, inventions, and creative expressions—what's called intellectual property—everything from trade secrets and proprietary products and parts to movies, music, and software.

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Internet Crime Complaint Center 25

Identity Theft/Account Takeover: (Identity Theft) Someone steals and uses personal identifying information, like a name or Social Security number, without permission to commit fraud or other crimes, or a fraudster obtains account information to perpetrate fraud on existing accounts (Account Takeover).

Investment: Deceptive practice that induces investors to make purchases on the basis of false information. These scams usually offer the victims large returns with minimal risk (Retirement, 401K, Ponzi, Pyramid, etc.).

Lottery/Sweepstakes: An individual is contacted about winning a lottery/sweepstakes they never entered.

Malware/Scareware: Software intended to damage or disable computers and computer systems. Sometimes, scare tactics are used by the perpetrators to solicit funds.

Misrepresentation: Merchandise or services were purchased or contracted by individuals online for which the purchasers provided payment. The goods or services received were of a measurably lesser quality or quantity than was described by the seller.

No Lead Value: Incomplete complaints which do not allow a crime type to be determined.

Non-Payment/Non-Delivery: Goods and services are shipped, and payment is never rendered (non-payment). Payment is sent, and goods and services are never received (non-delivery).

Other: Other types of Internet/Non-Internet fraud not listed.

Personal Data Breach: A leak/spill of personal data which is released from a secure location to an untrusted environment. Also, a security incident in which an individual's sensitive, protected, or confidential data is copied, transmitted, viewed, stolen or used by an unauthorized individual.

Phishing/Vishing/Smishing/Pharming: The use of unsolicited email, text messages, and telephone calls purportedly from a legitimate company requesting personal, financial, and/or login credentials.

Ransomware: A type of malicious software designed to block access to a computer system until money is paid.

Re-shipping: Individuals receive packages at their residence and subsequently repackage the merchandise for shipment, usually abroad.

Real Estate/Rental: Loss of funds from a real estate investment or fraud involving rental or timeshare property.

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Social Media: A complaint alleging the use of social networking or social media (Facebook, Twitter, Instagram, chat rooms, etc.) as a vector for fraud. Social Media does not include dating sites.

Tech Support: Attempts to gain access to a victim's electronic device by falsely claiming to offer tech support, usually for a well-known company. Scammer asks for remote access to the victim's device to clean-up viruses or malware or to facilitate a refund for prior support services.

Terrorism: Violent acts intended to create fear (terror); are perpetrated for a religious, political, or ideological goal; and deliberately target or disregard the safety of non-combatants.

Virus: Code capable of copying itself and having a detrimental effect, such as corrupting the system or destroying data.

Virtual Currency: A complaint mentioning a form of virtual/crypto currency (Bitcoin, Litecoin, Potcoin, etc.).

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NATIONAL SECURITY ARCHIVE

National Security Archive, Suite 701, Gelman Library, The George Washington University, 2130 H Street, NW, Washington, D.C., 20037, Phone: 202/994-7000, Fax: 202/994-7005, nsarchiv@gwu.edu

Keywords

declassifiedNational Security Archive

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