Yahoo Finance

The majority of Americans (68 percent) have experienced a financial scam or fraud at some point in their lives, of whom 3 in 10 (30 percent) faced more than one type of scam.

Most Americans who’ve faced a scam or fraud in the past 12 months (90 percent) say someone accessed or attempted to access their personal financial information, such as their bank account, credit cards or Social Security number. Yet, more than half (57 percent) say those attempts were unsuccessful.

In total, 37 percent of Americans who experienced financial fraud or a scam in the past 12 months say they lost money, including those who say someone took their funds after accessing their personal or financial information (19 percent) and those who sent funds to a scammer or paid for a phony service (23 percent).

“Scammers’ 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,” Foster says.

“The impending ‘Great Wealth Transfer’ of the baby boomer generation and the recent halt in activities at the watchdog Consumer Financial Protection Bureau (CFPB) might also embolden scammers, leading to increased fraudulent activities and potentially creating obstacles for Americans seeking recourse,” she continues.

Older generations are more vulnerable to fraud, although young people aren’t immune

Baby boomers (ages 61-79) and Generation Xers (ages 45-60) are most likely to have ever experienced a financial scam or fraud at 73 percent and 71 percent, respectively.

Still, Gen Zers (ages 18-28) and millennials (ages 29-44) aren’t immune, at 63 percent and 64 percent, respectively.

Baby boomers were also the most likely to go through the experience over the past 12 months, at 39 percent, followed by 34 percent of Gen Xers, 32 percent of millennials and 31 percent of Gen Zers.

But when it comes to losing money, the picture looks different.

Half of Gen Zers who experienced a financial scam or fraud over the past 12 months lost money, at 53 percent. They’re followed by 45 percent of millennials, 32 percent of Gen Xers and 26 percent of baby boomers. That’s primarily because Gen Zers reported a higher likelihood of giving money to a scammer or paying for what turned out to be a phony service (34 percent), versus 26 percent who lost money when someone accessed their personal or financial information.

The likelihood of experiencing fraud decreases as income rises

Adults with the lowest incomes are not only dealing with greater financial pressures than other groups, but they appear to be more vulnerable to scams pretending to help.

Previous Bankrate surveys found that low-income Americans were more likely than others to have credit card debt, be denied loans and have no emergency savings. This survey now shows that they are most likely to have experienced financial fraud.

Americans earning under $50,000 a year were the most likely to have experienced fraud or a scam since January 2024, at 37 percent. They’re followed by 33 percent of those making between $50,000 and $79,999 a year and 34 percent both for those making between $80,000 and $99,999 a year and those earning $100,000 or more annually.

Adults making under $50,000 a year who experienced a scam or fraud within the past 12 months were also the most likely to lose money, at 40 percent.

The trauma of past fraud may lead victims to think it will happen again

In general, Americans think it’s slightly more unlikely (at 39 percent) than likely (37 percent) that they’ll be personally targeted by a financial scam in the next 12 months.

But the experience of going through it once before appears to shape their expectations of experiencing it again.

Nearly half of Americans who’ve ever experienced fraud or a scam (46 percent) say it’s likely that they’ll experience another occurrence within the next 12 months, as opposed to 36 percent who say it’s unlikely.

Recency bias may be even stronger. The share of those who say it’s likely they’ll experience a financial scam within the next 12 months surges to 61 percent for those who’ve experienced it since January 2024, while just 27 percent say it’s unlikely.

Older generations tend to feel more pessimistic about a future scam. Baby boomers (44 percent) and Gen Xers (42 percent) think it’s more likely than not that they’ll be personally targeted by a financial scam within the next 12 months. But Gen Zers (54 percent) and millennials (43 percent) think it’s more unlikely than likely.

What to do if you’re facing a financial scam or fraud

Realizing you’ve fallen for a scam or shared personal information can be scary. But try to keep your cool — scammers prey on people who feel desperate. There are still action steps you can take to prevent further harm.

“If you suspect that someone has used your information falsely or that you’ve paid for a phony service, don’t panic,” Foster advises.

“The best steps toward reversing any monetary damage are having all parties aligned on the same goal and using every resource available to you.”

• Contact your bank: First, reach out to the bank or issuer holding your money. “Lock your financial accounts from further use and contact your bank to see if they can reverse any transfers or help you get your money back,” Foster says. You can also flag or dispute any fraudulent charges on a credit card.

• Change your passwords: Next, change your passwords to your bank, credit card and any other financial account you have that might be at risk. Here’s how to protect your bank accounts from hackers.

• Freeze your credit reports: You can contact the three major credit bureaus and ask them to freeze your credit reports. That way, a fraudster can’t get new credit approved in your name. Some experts suggest always having your credit frozen, but you’ll have to unfreeze it anytime you want to apply for credit.

• File a report with the Federal Trade Commission (FTC): Finally, you can report suspected fraud to the FTC, which will be shared with law enforcement to help prevent future fraud.

It can be unsettling and disempowering to fall victim to fraud, but you can take control of your next steps to limit the damage. From there, you can focus on prevention for the future.

Here’s how almost 9 in 10 Americans protect themselves from fraud

The survey found the majority of Americans (89 percent) have taken steps with their finances over the past 12 months that could help protect them from financial fraud.

Almost 7 in 10 Americans (69 percent) say they have avoided clicking on suspicious links or emails.

More than half (53 percent) have monitored their financial accounts at least once every few months, while almost half have enabled two-factor authentication (49 percent) and/or updated their personal accounts with strong, unique passwords (46 percent).

Roughly 2 in 5 say they have checked their credit report for errors at least once (41 percent) and/or shredded sensitive documents before disposal (39 percent).

And about 1 in 3 (34 percent) have set up spam filters on their phone, text messages or emails, while more than 1 in 4 (28 percent) have reported suspicious activity or charges to their bank. Almost 2 in 10 (19 percent) have searched for information on common types of scams.

The more fraud prevention steps you take, the better off you might be. Seventy-seven percent of Americans have taken at least two of these steps, 65 percent have taken at least three and more than half (51 percent) have taken four.

In addition to steps individuals can take to protect themselves, the Electronic Fund Transfer Act (EFTA) and the Fair Credit Billing Act (FCBA) protect consumers from instances like unauthorized transactions on their debit cards or credit cards and being threatened at an ATM. But it’s not as easy to reclaim your money if you willingly pay a scammer for a phony service.

Younger generations and lower earners are less likely to take fraud prevention steps

Notably, older generations are more likely to have recently faced a scam but also more likely to have recently taken steps to prevent fraud.

Baby boomers (at 95 percent) were the most likely of any generation to take these steps, followed by 90 percent of Gen Xers, 86 percent of millennials and 83 percent of Gen Zers.

Earners making $100,000 or more were also most likely to take these steps, at 94 percent. That’s compared 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 percent of Americans making under $50,000 said they took at least one of those steps.

Even Americans who protect themselves can still be scammed

The survey shows more than 7 in 10 Americans who have taken at least one of these precautionary steps with their finances within the past year (73 percent) report they were defrauded or scammed at some point, including 38 percent in the past 12 months. That begs the question — are Americans ever safe from financial scams or fraud? Or did they only take steps after experiencing fraud?

“It’s impossible to know whether Americans took the steps that could protect them from fraud before or after being targeted,” Foster explains. “In other words, experience might be the teacher here.”

Meanwhile, the Americans who’ve taken protective steps in the past year also say it’s slightly more likely (41 percent) than unlikely (39 percent) that they’ll be targeted by a financial scam in the next 12 months. Their skepticism or past experience with fraud might be what spurs their security efforts.

In comparison, Americans who haven’t taken protective steps with their finances were much less likely to report that they had ever been victimized. About 3 in 10 (29 percent) said they had ever been victimized, and just 6 percent said they were defrauded or scammed in the past 12 months.

“While disheartening, falling for a scam even after taking these preventative measures doesn’t mean you should halt what you’re doing and just take your chances,” Foster says. “It serves as a reminder of being vigilant and adaptive in protecting one’s hard-earned money. Remember, if a service seems too good to be true, it probably is.”

Learn more: How to keep yourself safe from common credit card scams today

• Methodology

  Bankrate commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,692 U.S. adults, of which 918 reported having experienced fraud or scams in the past 12 months. Fieldwork was undertaken between Jan. 27-29, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.