40% of Americans Lost Money to Scams in the Past Year, Survey Finds

Financial fraud is becoming so common that many Americans now expect to be targeted.

Over the past 12 months, 4 in 10 Americans say they were victims of a scam, up from 34% last year, according to Bankrate’s annual financial fraud survey.

That prevalence may explain why 56% say they expect to be targeted by fraud in the future, up from 37% in last year’s survey. Nearly all respondents now take steps to prevent fraud, including avoiding suspicious links, monitoring financial accounts, and using two-factor authentication.

But Sarah Foster, Bankrate’s U.S. economic analyst, said vigilance is more important than ever.

“There’s no foolproof way to avoid being targeted by a scam anymore, and even Americans who take these steps can fall victim to fraud,” Foster said. “If you think you’ve been scammed, it’s important to act quickly. Contact your bank right away, report it to the Federal Trade Commission, place a fraud alert on your credit reports or lock your accounts if needed.”

AI is making scams easier

Debt.com has conducted an annual identity theft survey for the past five years.

In the most recent survey, 9 in 10 respondents said they believe artificial intelligence will contribute to an increase in identity theft and related fraud. Another 15% said they believe they have already been targeted by scams created using AI tools.

While respondents did not always know how the fraud occurred, many identified emerging technologies as likely tools used in scams.

The most commonly cited tactics included:

• Deepfakes — AI used to impersonate family members, coworkers, or trusted contacts: 51%
• Generative AI — technology used to create convincing text, images, or videos: 31%
• AI-powered password cracking — 13%

Foster said the rapid development of artificial intelligence has created new opportunities for criminals to refine their methods.

“Fraudsters are getting more sophisticated thanks to artificial intelligence, and they’re reaching more people than ever,” Foster said. “It might be wishful thinking at this point to assume you’ll never come across someone attempting to steal your information or your money.”

AI is also helping stop fraud

Technology has long created an arms race between criminals and the institutions trying to stop them. While fraudsters adopt new tools to commit scams, banks and financial companies are increasingly deploying artificial intelligence to detect suspicious activity.

Don Silvestri, president of Debt.com, said AI-powered tools are already being used to monitor transactions and identify fraud in real time.

Among the most common methods used by financial institutions:

• Real-time monitoring: AI systems can analyze massive volumes of financial data almost instantly, helping banks flag unusual transactions or sudden activity in accounts that are normally quiet.
• Pattern detection: By examining behavior across multiple accounts and transactions, AI tools can identify connections and activity patterns that may signal fraudulent behavior.
• Improved accuracy: Artificial intelligence is not flawless, and recent examples of AI “hallucinations” highlight its limitations. But in fraud detection, machine learning systems can identify suspicious transactions far faster than human analysts and often reach accuracy levels above 90%.

“Banks and other companies have already deployed AI to recognize identity theft patterns and either stop it before it happens or quickly isolate it,” Silvestri said.

Still, Howard Dvorkin, chairman of Debt.com, said the rapid growth of fraud shows more protections are needed.

“Consumers are fighting a battle with tools that were built for a different era,” Dvorkin said. “Fraudsters now use AI to scale their crimes faster than families can respond. Until we give Americans stronger protections and clearer reporting systems, identity theft will continue to outpace prevention.”