The latest Bankrate Financial Fraud Survey reveals that nearly one in three U.S. adults (34 percent) have experienced financial fraud or fraud in the past 12 months since January 2024. Of these, almost two in five (37 percent) lost money.
“Today’s financial fraud comes in all shapes and sizes, and has gone far beyond typo-filled text messages that clearly come from a scammer,” says Sarah Foster, economic analyst at Bankrate US.
“There are alluring text messages claiming to have won prizes, individuals posing as recruiters offering paid job interviews, investment schemes, meme coins, and even threats to take loved ones hostage,” Foster continued. “The methods may be different, but the underlying motivation is consistent.”
And these scams can leave not only financial but also psychological marks. More than three in five people (61%) who have been the victim of a scam or scam in the past year believe they will be a victim again next year.
Almost 2 in 5 victims of financial fraud lost money last year
According to Bankrate’s Financial Fraud Survey, more than two in three Americans (68%) have experienced financial fraud or fraud at some point. The recency and frequency of the scams is also noteworthy.
The majority of Americans (68%) have experienced financial fraud or scams at some point in their lives, and 3 in 10 (30%) have fallen victim to more than one type of fraud.
Most Americans (90%) who experienced fraud or fraud in the past 12 months say someone accessed or attempted to access their personal financial information, such as bank accounts, credit cards, or Social Security numbers. But more than half (57%) say those attempts have been unsuccessful.
A total of 37% of Americans who experienced financial fraud or fraud in the past 12 months said they lost money, including those who said someone took their funds after accessing their personal or financial information (19%) and those who sent money to a scammer or paid for a fake service (23%).
“Victims of scammers may be more susceptible to scammers’ methods than usual, as high interest rates, rampant inflation, and general financial anxiety weigh heavily on their mental health,” Foster says.
“The impending ‘billionaire relocation’ of baby boomers and the recent suspension of the watchdog Consumer Financial Protection Bureau (CFPB) could also embolden fraudsters, leading to an increase in fraudulent activity and creating obstacles for Americans seeking relief,” she continued.
Younger generations are not immune to fraud, but older generations are more likely to fall victim to fraud.
Baby boomers (ages 61-79) and Gen
Still, Gen Z (ages 18-28) and Millennials (ages 29-44) are not immune at 63% and 64%, respectively.
Baby boomers are also the most likely to have had this experience in the past 12 months at 39 percent, followed by Gen X at 34 percent, Millennials at 32 percent, and Gen Z at 31 percent.
However, when it comes to losing money, things are different.
Half (53%) of Gen Zers suffered a loss due to financial fraud or fraud in the past 12 months. This is followed by 45 percent of Millennials, 32 percent of Gen Xers, and 26 percent of Baby Boomers. The main reason for this is because Gen Z is more likely to give money to a scammer or pay for something that turns out to be a fake service (34%) compared to 26% who suffered a loss when someone accessed their personal or financial information.
As your income increases, your chances of being scammed decrease.
Adults with the lowest incomes not only face greater financial pressure than other groups, but also appear to be more vulnerable to scams disguised as aid.
Previous Bankrate research found that low-income Americans are more likely than others to have credit card debt, be denied a loan, and have no emergency savings. The study found that they were the most likely to have experienced financial fraud.
Starting in January 2024, Americans with an annual income of less than $50,000 were the most likely to have been scammed or defrauded (37%). This was followed by 33% of people with annual incomes of $50,000 to $79,999, and 34% of both those with annual incomes of $80,000 to $99,999 and those with annual incomes of $100,000 or more.
Adults with an annual income of less than $50,000 who had been victimized by fraud or fraud in the past 12 months were also the most likely to suffer a loss, at 40%.
The trauma of past fraud may make victims think it will happen again.
Americans generally believe it is slightly more likely (39 percent) than likely (37 percent) that an individual will be the target of financial fraud in the next 12 months.
However, the experience we have had once before seems to shape our expectations of experiencing it again.
Almost half (46%) of Americans who have experienced fraud or fraud say it is likely to happen again in the next 12 months, compared to 36% who say it is unlikely.
Recency bias may be even stronger. The proportion of people who say they are likely to experience financial fraud in the next 12 months jumps to 61 per cent for those who have experienced financial fraud since January 2024, compared to just 27 per cent who say it is unlikely.
Older generations tend to feel more pessimistic about future fraud. Baby boomers (44 percent) and Gen However, Gen Z (54%) and Millennials (43%) think it is less likely than not.
What to do if you fall victim to financial fraud or scams
It can be scary to realize you’ve been scammed or your personal information has been shared. But try to remain calm. Scammers prey on people who feel hopeless. There are still steps you can take to prevent further damage.
“If you suspect someone has misused your information or paid for a bogus service, don’t panic,” Foster advises.
“The best step to recovering financial damages is for all parties to align toward the same goal and utilize all available resources.”
- Please contact your bank: First, contact the bank or issuing company that holds the money. “Lock your financial account from future use and contact your bank to see if they can reverse the transfer or get your money back,” Foster says. You can also flag or dispute fraudulent charges on your credit card.
- Change your password. Next, change your passwords for your bank, credit cards, and other financial accounts that may be at risk. Here’s how to protect your bank account from hackers.
- Freeze your credit report. You can contact the three major credit bureaus and ask them to freeze your credit report. That way, scammers won’t be able to get new credit approved in your name. Some experts recommend keeping your credit frozen at all times, but you should unfreeze it whenever you apply for credit.
- File a report with the Federal Trade Commission (FTC). Finally, you can report suspected fraud to the FTC. Your report will be shared with law enforcement to help prevent future fraud.
Being a victim of fraud can be scary and feel helpless, but you can take control of your next steps to minimize the damage. From there, you can focus on future prevention.
Learn how 9 out of 10 Americans protect themselves from scams
The survey found that the majority of Americans (89%) have taken steps with their finances to protect themselves from financial fraud in the past 12 months.
Nearly 7 in 10 Americans (69%) say they have avoided clicking on suspicious links or emails.
More than half (53%) monitor their financial accounts at least once every few months, and almost half enable two-factor authentication (49%) or update personal accounts with strong, unique passwords (46%).
Roughly two in five say they have checked their credit report for errors at least once (41%) and/or shredded sensitive documents before disposing of them (39%).
Around one in three (34%) also have spam filters set up on their phone calls, texts and emails, and more than one in four (28%) report suspicious activity or charges to their bank. Nearly two in ten (19%) have searched for information about common types of scams.
The more fraud prevention measures you take, the better off you are likely to be. 77% of Americans have taken at least two of these steps, 65% have taken at least three, and more than half (51%) have taken four.
In addition to steps individuals can take to protect themselves, the Electronic Funds Transfer Act (EFTA) and the Fair Credit Billing Act (FCBA) protect consumers from situations such as fraudulent debit and credit card transactions and ATM threats. However, if you willingly paid money to a scammer for a fake service, it is not easy to get your money back.
Younger generations and people with lower incomes are less likely to take steps to prevent fraud.
In particular, older generations are not only more likely to have recently been scammed, but also more likely to have recently taken steps to prevent fraud.
Baby boomers (95%) are the most likely of all generations to take these steps, followed by Gen X at 90%, Millennials at 86%, and Gen Z at 83%.
Those earning more than $100,000 were also the most likely to take these steps at 94%. This compares to 93 percent of those earning between $80,000 and $99,999 and 89 percent of those earning between $50,000 and $79,999. About 87% of Americans with incomes under $50,000 said they had taken at least one of these steps.
Even Americans who protect themselves can be scammed.
More than 7 in 10 Americans (73%) who have taken at least one of these financial precautions in the past year report being scammed or scammed at some point, with 38% reporting it happened in the past 12 months, according to the survey. A question arises here. Are Americans safe from financial scams and scams, or do they only take action after encountering fraudulent activity?
“It is impossible to know whether Americans took steps to protect themselves from fraud before or after they were targeted,” Foster explained. “In other words, experience may be the teacher here.”
According to Bankrate research, fraud can happen to just about anyone, even those who appear to be tech-savvy and take proper precautions to protect themselves.
— Sarah Foster, Bankrate US Economic Analyst
Meanwhile, Americans who have taken protective measures in the past year also say they are slightly more likely (41 percent) than less likely (39 percent) to be the target of financial fraud in the next 12 months. Their skepticism and past experience with fraud may be spurring their security efforts.
By comparison, Americans without financial protection were much less likely to report ever having been harmed. Almost three in 10 (29%) said they had been a victim in the past, and just 6% said they had been scammed or scammed in the past 12 months.
“It’s unfortunate that you still get scammed even after taking these precautions, but that doesn’t mean you should stop what you’re doing and take a chance,” Foster says. “This is a reminder to be cautious and adaptable to protect your hard-earned money. Remember, if a service seems too good to be true, it probably is.”