Behind the Top Scams Consumers Face and the Defenses That Work

Fraudsters are nothing if not creative, constantly reshaping old tricks with new technology to stay one step ahead of consumers and the institutions that serve them.

That adaptability is a central theme of “Financial Scams and Consumer Trust,” a November report produced by PYMNTS Intelligence in collaboration with Block.

Based on a U.S. census-balanced survey of more than 15,000 consumers, the research finds that nearly one in five U.S. adults has experienced at least one scam in the past five years, underscoring how deeply fraud has embedded itself in everyday financial life.

Younger, Digital-First Consumers Are Most at Risk

One of the report’s most striking findings upends long-held assumptions about who is most vulnerable. Younger generations, not older ones, face the highest exposure. About 24% of millennials and 22% of Generation Z consumers report having been scammed in the past five years, compared with 14% of baby boomers and seniors.

College-educated consumers are also more likely to be victims than those without a degree, reflecting greater digital engagement and exposure.

The channels matter. Email and phone calls remain the most common entry points overall, but social media plays an outsized role for Gen Z, accounting for nearly one-quarter of first scam contacts among that cohort. Across age groups, fraudsters overwhelmingly rely on impersonation, posing as trusted companies, banks, government agencies or even personal contacts.

Technology as an Enabler for Scammers

Technology has lowered both the cost and the speed of fraud. Scammers increasingly use digital marketplaces, peer-to-peer payment rails and AI-enabled impersonation tools to make schemes more convincing. Speed is a core weapon: nearly two-thirds of victims make a payment within 24 hours of first contact, and many do so within minutes. In more than half of cases, victims send money directly; in the rest, they unknowingly provide account credentials that allow funds to be drained.

The Top Five Scams Targeting Consumers

Fake debt collection (18%): Fraudsters pose as collectors demanding immediate payment. Victims span income and age groups, with strong impact across generations.

Scams leading to identity theft (16%): Stolen personal data is used to access or open accounts. These scams are especially damaging and frequently reported to banks.

Gift card scams (15%): Victims are pressured to buy and share gift card codes. Younger consumers and bridge millennials are disproportionately affected.

Fake eCommerce or marketplace scams (14%): Nonexistent goods are sold online, with older consumers more likely to report these as their most costly incidents.

Investment scams (8%): Though less common, they cause the largest losses, with median household losses exceeding $3,000 and heavy use of cryptocurrency payments.

How Technology Can Also Be the Defense

The report makes clear that prevention and response are inseparable. Consumers who report scams to their financial institutions are far more likely to recover funds, and trust rebounds sharply when recovery occurs.

For banks and FinTechs, the defenses increasingly hinge on technology: real-time transaction monitoring, confirmation prompts that slow high-risk payments, stronger identity verification and clearer reporting pathways inside apps and online banking portals. Just as important is education that helps consumers recognize impersonation tactics and urgency cues before money moves.

Fraud may be relentless, but the data shows it is not unbeatable. Faster detection, clearer communication and earlier intervention can reduce losses, preserve trust and keep consumers engaged in the digital economy.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.