Survey: More than 1 in 5 adults falling victim to financial fraud

More than one in five adults have fallen prey to financial fraud or scams, with that number higher among older adults, according to the Federal Reserve Economic Well-Being of U.S. Households in 2024 report. .The report outlined credit cards as the most often used vehicle for fraud, with 17 percent of respondents. Those ages 45 and older were more likely to fall victim to credit card-related fraud. “In contrast to differences by age, the incidence of financial fraud was similar by income, race and ethnicity, and gender,” according to the report. Only 8 percent of financial fraud did not involve credit cards. Of those, 63 percent lost money, with one-third not recovering their losses. Before funds were recovered, half of those reporting non credit card-related fraud were out at least $500 while one in four lost at least $2,000. The process of recovering the funds proved time-consuming for many, according to the Federal Reserve. Three in 10 reporting non-credit card related fraud spent at least 10 hours recovering funds or dealing with the consequences. Nearly 4 in 10 spent up to nine hours.Non-credit card fraud was valued at $84 billion in 2024. Fraud has been a top focus for banks and consumers. According to a Federal Reserve survey of risk officers earlier this year, 73 percent of financial institutions experienced a debit card fraud attempt in 2024. Sixty two percent experienced check fraud attempts, while 36 percent reported attempted fraud through nonbank payment apps. Other Economic Well-Being of U.S. Households report findings included:Six percent of adults were unbanked, unchanged from the previous three months. Fifteen percent of people used ‘buy now, pay later’ products in the past year, up from 14 percent in 2023 and 10 percent in 2021. Eight percent of adults used cryptocurrencies either as an investment or to make financial transactions. Seventy three percent of adults were living comfortably or doing OK financially, unchanged from the previous year.