Inside Today’s Most Common Consumer Scams and What Actually Stops Them

Why Scams Keep Evolving

Fraudsters are nothing if not adaptable. As new technologies emerge and consumer behaviour shifts, old scams are reshaped into more convincing, faster-moving schemes designed to stay one step ahead of both consumers and the institutions that serve them.

Based on a U.S. census-balanced survey of more than 15,000 consumers, the research shows that fraud is no longer a fringe issue. Nearly one in five U.S. adults has experienced at least one scam in the past five years, highlighting how deeply fraud has become embedded in everyday financial life.

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Younger, More Digital Consumers Face Greater Exposure

One of the report’s most surprising findings challenges long-standing assumptions about vulnerability. Younger consumers, not older ones, face the highest exposure to scams.

Approximately 24 percent of millennials and 22 percent of Generation Z consumers report having been scammed in the past five years, compared with 14 percent of baby boomers and seniors. College-educated consumers are also more likely to be victims, reflecting higher levels of digital engagement and online activity.

The channel of first contact matters. While email and phone calls remain common entry points overall, social media plays an outsized role for Gen Z, accounting for nearly one-quarter of initial scam contacts. Across all age groups, impersonation dominates, with fraudsters posing as trusted companies, financial institutions, government agencies, or even personal contacts.

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How Technology Accelerates Fraud

Technology has reduced both the cost and effort required to carry out scams. Fraudsters increasingly rely on digital marketplaces, peer-to-peer payment tools, and AI-enabled impersonation to make schemes more convincing and harder to detect.

Speed is one of the most effective weapons. Nearly two-thirds of scam victims make a payment within 24 hours of first contact, and many act within minutes. In more than half of cases, victims send money directly. In the remaining cases, they unknowingly share account credentials, allowing funds to be accessed later.

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The Most Common Scams Consumers Face

The report identifies five scam types responsible for the majority of incidents:

• Fake debt collection (18%)
• Fraudsters pose as collectors demanding immediate payment. These scams affect consumers across income and age groups.
• Scams leading to identity theft (16%)
• Stolen personal information is used to access or open accounts. These incidents are among the most damaging and frequently reported to banks.
• Gift card scams (15%)
• Victims are pressured to purchase and share gift card codes. Younger consumers and bridge millennials are disproportionately affected.
• Fake eCommerce or marketplace scams (14%)
• Fraudsters sell non-existent goods online. Older consumers are more likely to report these as their costliest scam experience.
• Investment scams (8%)
• While less common, these cause the largest losses. Median household losses exceed $3,000, often involving cryptocurrency payments.

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When Technology Becomes the Defence

The research makes clear that prevention and response must work together. Consumers who report scams to their financial institution are significantly more likely to recover funds, and trust rebounds sharply when recovery occurs.

For banks and FinTechs, effective defences increasingly rely on technology: real-time transaction monitoring, confirmation prompts that slow high-risk payments, stronger identity verification, and clearer reporting tools built directly into digital channels.

Education is just as critical. Helping consumers recognize impersonation tactics, urgency cues, and pressure techniques before money moves can significantly reduce losses.

Fraud may be persistent, but it is not unbeatable. Faster detection, clearer communication, and earlier intervention can protect consumers, preserve trust, and support continued participation in the digital economy.

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Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile.

Our team of payment experts is here to guide you through the complexities of fraud prevention and payment security. We work closely with acquirers and technology partners to ensure your transactions remain secure, compliant, and reliable.

Get expert advice on strengthening your payment security. Contact our team at sales@kuberapayments.com or 604-484-9278

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