One in Three Americans Was Scammed Last Year: Survey

Targets of fraudsters may be more vulnerable now given the pressures of inflation, elevated interest rates, and ‘general money woes.’

A storefront window in San Francisco on Feb. 25, 2008. Justin Sullivan/Getty Images

Millions of Americans are being subjected to financial scams, with a large proportion of them losing money, according to a recent survey by consumer services company Bankrate.

“About 1 in 3 U.S. adults (34 percent) have experienced financial fraud or a scam in the past 12 months, since January 2024,” the company said in a March 3 statement.

“Of Americans who’ve been scammed in the past year, almost 2 in 5 have lost money (37 percent). That includes 19 percent who lost money when someone accessed their personal information and 23 percent who sent funds to a scammer or paid for a phony service.”

Older generations, baby boomers, and Gen X were found to be slightly more likely to have experienced financial fraud compared to millennials and Gen Z.

However, things are different in terms of actually losing money. A higher proportion of people from younger generations who experienced a financial scam or fraud over the past 12 months lost money, with 53 percent of Gen Z and 45 percent of millennials admitting the loss. This figure was 32 percent for Gen X and 26 percent for baby boomers.

Sarah Foster, Bankrate U.S. economic analyst, said in a statement that victims “might be more vulnerable than usual in falling for their tactics as high interest rates, hot inflation, and general money woes weigh on their mental health.”

Prevention

On the positive side, almost nine out of 10 Americans said they have taken steps to ensure their money is protected from fraud.

This includes avoiding suspicious links in emails, monitoring their financial accounts regularly, enabling two-factor authentication, checking credit reports for errors, and shredding documents containing sensitive information before disposing of them.

According to Foster, financial frauds today have advanced “far beyond the typo-ridden text messages that so obviously look to be from a scammer.”

“There’s enticing text messages that claim you’ve won a cash prize, individuals posing as recruiters offering job interviews for a fee, investment schemes, meme coins, and even threats of holding a loved one hostage,” she said. “The methods may vary, but the underlying motive is consistent.”

The U.S. Federal Trade Commission (FTC) advises people who have paid a scammer via debit or credit card to contact their financial institution, report the fraudulent charge, and request a reversal.

If the payment was made via bank transfer, victims can ask the bank to reverse the transaction. Similar requests may be made for wire transfers, app-based money transfers, and other payments.

However, if the scam concerns cryptocurrencies, getting back the money could be challenging, the FTC said.

“Once you pay with cryptocurrency, you can only get your money back if the person you paid sends it back. But contact the company you used to send the money and tell them it was a fraudulent transaction. Ask them to reverse the transaction, if possible.”

Warning Signs

Scammers can pretend to be from an organization that a target knows about, according to the FTC.

Fraudsters may present themselves as government representatives, such as from Social Security, Medicare, the Internal Revenue Service (IRS), or the FTC. They also impersonate utility companies or pretend to be from charities seeking donations.

The criminals may claim the target is “in trouble with the government. Or you owe money. Or someone in your family had an emergency. Or that there’s a virus on your computer,” the FTC said.

“Some scammers say there’s a problem with one of your accounts and that you need to verify some information. Others will lie and say you won money in a lottery or sweepstakes but have to pay a fee to get it.”

They pressure the victim to act immediately and may threaten serious consequences such as confiscation of a driver’s license or even arrest to dupe targets into coughing up money.

During a Senate committee hearing in September, Amy Nofziger, director of fraud victim support at AARP Fraud Watch Network, said that victims of scams not only lose money but have to deal with other consequences.

“For many fraud victims, the financial toll is only part of the story; research shows nearly two in three victims suffer a significant health or emotional impact. This is in part caused by the stigma associated with fraud,” she said.

“While society treats many victims of crime with compassion, the typical response with fraud victims is to place the blame and responsibility on the victim. There is a tendency to blame fraud victims for ‘falling for’ a scam, not being smart enough, or not paying enough attention.”