Financial scams are on the rise, with a new survey from Bankrate revealing about one in three U.S. adults encountered financial fraud or a scam in the past year. Nearly two in five of those victims suffered financial losses, the survey showed.

The Federal Trade Commission reported that Americans lost more than $10 billion to scams in 2023, a record for fraud losses in the United States.

Scammers are employing increasingly sophisticated tactics, Sarah Foster, an analyst at Bankrate, said.

“There’s enticing text messages that claim you’ve won a cash prize, individuals posing as recruiters offering job interviews for a fee, investment schemes, meme coins and even threats of holding a loved one hostage,” Foster said. “The methods may vary, but the underlying motive is consistent.”

Despite the prevalence of scams, many Americans take steps to protect themselves. The Bankrate survey found that nearly 89% of Americans have implemented measures such as updating passwords, enabling two-factor authentication and setting up spam filters. Many are also monitoring their financial accounts, checking credit reports and shredding sensitive documents.

For some, these precautions are effective. The survey indicated that about 57% of Americans targeted by scammers reported the attempts were unsuccessful. However, 37% of those scammed in the past year still lost money, often through unauthorized access to personal information or direct financial transfers.

The survey also highlighted generational differences in vulnerability to scams. While older generations, such as baby boomers and Generation Xers, are more likely to have experienced a scam, younger generations are more likely to suffer financial losses. More than half of Gen Zers who encountered a scam in the past year lost money, followed by 45% of millennials, 32% of Gen Xers and 26% of baby boomers.

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