More than two-thirds of U.S. adults have experienced a financial scam or fraud in their lifetime, with nearly a third falling victim in the past year, according to research from Bankrate. However, there’s some good news—more consumers are taking steps to protect themselves from scams.
The financial fraud survey from Bankrate found that 34% of respondents have been targeted by a scam since January 2024. But thanks in part to better education about cyberattacks, only 37% of those targeted actually lost money. This includes cases where criminals accessed personal information, victims sent funds directly to a criminal, or paid for a fraudulent service.
Protecting Against Fraud
The most common form of fraud in the past year involved attempts to access personal financial information, such as credit card details or Social Security numbers. Encouragingly, more than half of those targeted reported that these attempts were unsuccessful.
Consumers are taking action after experiencing fraud. More than three-quarters of U.S. adults who have taken precautionary steps to protect their finances in the past year say they have been scammed at some point.
Overall, Bankrate found that 89% of respondents have taken steps to protect themselves from scams in the past year. These measures range from updating passwords and enabling two-factor authentication to checking credit reports and shredding sensitive documents.
Technology Can Help
Technological advances are making this easier for modern consumers, but in many instances, they still need to be proactive. For example, biometrics such as fingerprint and facial recognition have become less intrusive methods of authentication, eliminating the need to remember a password or passcode.
Behavioral biometrics can include factors like how someone holds their phone or the cadence they use when entering a number. However, these recognition factors are not installed automatically, according to Tracy Goldberg, Director of Fraud and Security at Javelin Strategy & Research. When someone receives a new iPhone, for example, Goldberg recommends enabling facial recognition or finger biometrics, allowing them to use Touch ID for any app connected to the mobile device.
Of course, technological advances have also benefited criminals. A 2024 study by Authority Hacker found that the number of scams using artificial intelligence had doubled in the past year, costing consumers more than $108 million.
