Drawing on a global survey of 21,000 adults, our new global research explores how fraud is experienced today’s digital economy. It explores not only how scams are rising in scale and sophistication, but how their impact is felt. While the findings point to a sharp global increase in fraud, the deeper story lies beyond the statistics. Fraud is not just a financial crime – it is a human one. Every transaction tells a story, and the damage extends far beyond money lost.
The emotional toll of financial scams
The emotional and behavioural damage caused by fraud is long lasting, with victims experiencing anger, frustration, embarrassment and shame, according to our global research survey, which unpacks the responses of individual consumers about their personal experiences of financial scams – from impersonation to investment and payment scams, and from phishing to QR code based fraud, deepfakes and much more.
Financial scams have become one of the defining risks of the digital age and are now a global, mainstream threat that undermines trust in financial institutions and leaves a lasting emotional impact on its victims.
After experiencing fraud, 97% of those affected change how they behave, often becoming more cautious online or avoiding certain channels.
The ripple effects of such changes are hard to quantify – but they amplify individual loss, hinder digital growth and undermine the bedrock of trust in the global financial ecosystem.
As scams surge, the fraud economy grows
Scams and fraud are rising sharply worldwide – and respondents are highly aware of this, with 71% of adults globally saying they believe financial scams are increasing.
Whilst this concern is highest in markets like Australia, France and the UK, the surging scam industry targets victims across markets – and also age groups – using ever-more sophisticated techniques: so sophisticated that 15% of victims say they took over a year to realise they’d been scammed.
One in nine adults worldwide has suffered a direct loss in just two years.
Phishing, impersonation and payment scams top the list, but the continued rise of AI-generated images, voice clones and deepfakes is undeniable.
The clever use of AI is complicating the landscape in myriad ways. Scams today are highly professional looking and, surprisingly, they often claim victims in the digital-first, Gen Z age bracket.
These findings reveal the nuanced nature of the impact of fraud across generations. Baby Boomers are highly targeted, but in reality, are less likely to become victims. In contrast, our report finds that younger generations are over-exposed to digital scams – and more likely to lose money: 32% of targeted Boomers report losing money, as opposed to 49% of Gen Z and 47% of Millennials.
Responsibility offers opportunity
While many individuals are trying to protect themselves, gaps nonetheless remain.
Interestingly, generational differences in the safety concerns adopted are strongly evident. Older generations are consistently more likely to take precautions – such as using strong passwords and multifactor authentication – than younger generations.
Of particular concern is that just 13% of respondents fully understand the protections or reimbursements they are entitled to if they are scammed. A notable 28% are unaware of any protections at all.
This translates into a clear responsibility on the part of the global financial industry – to not only strengthen defences, but also to protect customers through better communication and enhanced education.
Banks, payment processors, fintechs and technology providers have made substantial progress in strengthening fraud detection, prevention and customer protection. The ongoing opportunity – and responsibility – now is to continue advancing these efforts.
Access the full survey report here.
