A woman lost nearly $10,000 in a bank impersonation scheme. One man lost $1,500 after falling for a fake apartment listing. A father nearly wired $5,000 to a criminal in a fake kidnapping scheme.
This is just a taste of the fraudulent activity we’ve reported on over the past year. Now a new report shows how widespread financial fraud really is in the U.S.
In a survey of more than 2,500 adults, the personal finance site Bankrate found 34% of Americans have experienced a form of financial fraud or scam in the past 12 months. Of those Americans, 37% said they have lost money.
“I think what we're really seeing here is that scammers are getting advanced,” said Bankrate analyst Sarah Foster. “It's far beyond just those typo-ridden text messages and emails.”
RELATED STORY | The top scams targeting you as we head into 2025
Dr. Beatriz Porras said she almost lost thousands of dollars after receiving a suspicious call from someone claiming to be from her local sheriff's department. The person on the phone told her she missed a court appearance to be an expert witness in a case.
"They knew my Social Security Number, they knew that I'm a doctor, they knew addresses, they knew my date of birth," she said.
Porras said the person on the phone threatened her with arrest if she didn’t pay $15,000.
Frightened, she went so far as to withdraw thousands of dollars from her account to pay the court fine before realizing the call was fake.
"Thank god, you know, I didn't lose that money, but they tortured me for three hours,” Porras said.
Watch as fraud victims tell us how easy it can be to fall for:
“The through line is that they're trying to appeal to your emotions, manipulate you in some way, and really make you feel like you might not have any other choices,” Foster explained.
RELATED STORY | IRS releases annual 'dirty dozen' list of tax scams
Foster said she worries cash-strapped Americans will become more susceptible to fraud due to higher interest rates, high inflation, or a slowdown in the job market.
“Fake recruiters, you know, posing as people who will offer you an interview in exchange for a couple hundred or even $1,000,” she said.
Fraudsters target all ages
According to Bankrate’s findings, no generation is safe from fraud.
Older adults, or baby boomers, were most likely to experience financial fraud in the past 12 months. However, it’s younger adults, or Gen Zers, who were most likely to report losing money.
How are Americans losing money? Those surveyed told Bankrate they either sent money to a scammer or paid for a phony service (23%), or their personal or financial information was accessed, and funds were taken (19%).
According to Bankrate, steps to protect your finances include:
- Monitoring your financial accounts.
- Enabling two-factor authentication.
- Avoiding suspicious links or emails.
“Don't really pick up the phone if you don't recognize the number. Don't answer the email if you don't recognize the sender,” Foster said.
So, is anyone safe from financial fraud?
Bankrate found most Americans, 89%, have taken at least one step to protect their finances.
“I think it's important that so many Americans are taking these steps to guard their finances,” Foster said, “but the thing is, financial fraud can happen in an instant, and you might not realize it until it's too late.”
She warns when something seems too good to be true, or too serious to be true, that is probably the case, so you don’t waste your money.
________________________________________
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook:John Matarese Money
- Instagram: @johnmataresemoney
- X/Twitter: @JohnMatarese
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
