Americans Think Fraud Is at ‘Crisis Level,’ Survey Finds

Key Points

Some other facts about scams that need to be emphasized, based on the survey:

• Peer-to-peer apps like Venmo, Zelle and CashApp are commonly used in scams. Only 37 percent of quiz takers knew that these apps do not offer consumers the same level of fraud protection as credit cards. Like gift cards, they are favored by criminals because their transactions are nearly impossible to trace. Fraud fighters suggest only using them with people you know and trust — to split a dinner bill with friends or send money to your grandchild, for instance.

• When someone directs you to use a cryptocurrency ATM to address some financial concern, you’re dealing with a scammer. One-third of adults aren’t aware that these ATMs are a key tool for criminals. They are often located at vape stores, gas stations or convenience stores, says Amy Nofziger, director of victim support for the AARP Fraud Watch Network. She explains that scammers will tell their victims to enter cash into a machine in exchange for cryptocurrency. “I spoke with one woman who spent two hours at a machine because she was depositing $80,000,” Nofziger says.
  

• Anyone can be a scam victim. Nearly 40 percent of people surveyed thought that victims lose money to scams because they are gullible. Observers may not be aware that some criminals’ emotional manipulations are extremely sophisticated; often part of international crime rings, they are able to hone their techniques by targeting a huge number of potential victims.

• Younger adults are more likely than older adults to be victims of a scam. About half of respondents thought that older people were more likely to be scam victims, but data from the FTC’s Consumer Sentinel Network Data Book 2022 shows that younger adults (ages 20 to 29; 43 percent) are more likely to report losing money to fraud than older adults (ages 70 to 79; 23 percent), although the median financial loss is much higher for older adults.​

Where to report fraud

If you spot or have been a victim of a scam, report it to your local police and the Federal Trade Commission (FTC) at reportfraud.ftc.gov and the Federal Bureau of Investigation’s Internet Crime Complaint Center at IC3.gov. The more information they have, the better they can identify patterns, link cases and ultimately catch the criminals. ​The AARP Fraud Watch Network Helpline, 877-908-3360, is a free resource. Call to speak with trained fraud specialists who provide support and guidance on what to do next and how to avoid scams in the future. The AARP Fraud Watch Network also offers online group support sessions.​