How Each State is Affected by E-commerce Scams

While economies the world over suffered, slowed, and effectively stopped due to the pandemic, the fraud economy flourished. Global analysts now project the cost of cybercrime to reach $11.9 trillion USD in 2026, surpassing the GDP of most countries.

But those were pre-pandemic estimates, derived under pre-pandemic conditions and an old normal. Experts believe the actual total in our new covid-concurrent reality is much higher. In some areas around the world, rates of fraud rose by nearly 20%.

The fraud economy, like any other, is vast, complex, and full of skilled operators who drive it. Cybercrime is a major contributor to the fraud economy, with e-commerce fraud as an offshoot.

In the first year of the pandemic, e-commerce sales in the U.S. rose by more than 32%, totaling $791.7 billion as businesses and consumers turned to online shopping amid lockdowns, social distancing restrictions, brick-and-mortar closures, and illness anxiety. But where there is prosperity earned honestly, there is also opportunity for bad actors to cash in.

More than 60% of internet users in the U.S. have experienced cybercrime. According to the FBI's Internet Crime Complaints Center (IC3), the five most reported cybercrimes are phishing, non-payment/non-delivery, extortion, personal data breach, and identity theft. People over the age of 60 are most likely to be targets of and fall victim to cybercrime. In 2020 alone, this segment of the population lost more than $966 million to online fraud.

Non-payment and non-delivery fraud was the second most widely reported type of cybercrime in 2020. According to the FBI, in non-delivery situations, where the victim is the buyer, payment is sent but goods and services are never received. In non-payment scams where the victim is the seller, items or services are sent, but payment is never received. These types of scams rose by 76% from 2019 to 2020. Just under 100,000 Americans were impacted by this type of e-commerce crime and collectively lost $217 million.

Wicked Reports broke down state-by-state 2020 data (including Washington D.C.) from the IC3 to determine the states most harmed by non-payment and non-delivery scams in e-commerce, ranked by losses per victim. While these specific non-payment/non-delivery scams rose by 76% from 2019 to 2020 (impacting nearly 100,000 Americans who collectively lost $217 million), the broader e-commerce fraud landscape has exploded, with losses now reaching tens of billions annually.

Population data as of July 1, 2021 was taken from the U.S. Census Bureau, which provides the most accurate baseline for this 2020 FBI IC3 data analysis, estimates victims per 100,000 citizens for each state. Interestingly, the top-five states most impacted by these scams were neither the states that shop online the most—which could have made them statistically more likely to be affected—nor were they the states that online shop the least, which could have indicated a lack of familiarity with e-commerce best practices.

Vigilance and a healthy bit of skepticism can be your greatest asset in protecting your information online, particularly in e-commerce settings. If a website looks suspicious or a deal looks too good to be true, walk away, or take time to vet it thoroughly. Global e-commerce fraud losses are now projected to exceed **$48 billion in 2025** and continue soaring, driven by AI and synthetic identity fraud.

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#51. Washington D.C.

- Losses per victim: $691 (69% lower than the national average)
- Victims per 100,000 citizens: 32 (#12 highest among all states)
- Total monetary loss: $146,462 (#51 highest among all states)

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#50. Kansas

- Losses per victim: $980 (56% lower than the national average)
- Victims per 100,000 citizens: 26 (#38 highest among all states)
- Total monetary loss: $734,971 (#38 highest among all states)

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#49. Kentucky

- Losses per victim: $1,085 (51% lower than the national average)
- Victims per 100,000 citizens: 25 (#39 highest among all states)
- Total monetary loss: $1,227,261 (#33 highest among all states)

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#48. New Hampshire

- Losses per victim: $1,133 (49% lower than the national average)
- Victims per 100,000 citizens: 30 (#20 highest among all states)
- Total monetary loss: $464,359 (#45 highest among all states)

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#47. Nebraska

- Losses per victim: $1,216 (45% lower than the national average)
- Victims per 100,000 citizens: 26 (#35 highest among all states)
- Total monetary loss: $617,568 (#43 highest among all states)

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#46. Tennessee

- Losses per victim: $1,221 (45% lower than the national average)
- Victims per 100,000 citizens: 28 (#27 highest among all states)
- Total monetary loss: $2,347,435 (#25 highest among all states)

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#45. Arkansas

- Losses per victim: $1,283 (42% lower than the national average)
- Victims per 100,000 citizens: 23 (#49 highest among all states)
- Total monetary loss: $889,084 (#35 highest among all states)

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#44. Michigan

- Losses per victim: $1,287 (42% lower than the national average)
- Victims per 100,000 citizens: 29 (#22 highest among all states)
- Total monetary loss: $3,797,858 (#15 highest among all states)

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#43. New Mexico

- Losses per victim: $1,322 (40% lower than the national average)
- Victims per 100,000 citizens: 25 (#41 highest among all states)
- Total monetary loss: $699,286 (#41 highest among all states)