A new study examines the prevalence of financial fraud and the far-reaching impact it is having on the finances of many Americans.
According to the CFP Board’s latest research, “Don’t Fall for It: Guarding Against Financial Fraud,” 62% have already encountered fraud or know someone who has in the past three years, and 55% expect themselves or someone close to them to be targeted again within the next 12 months.
But a far smaller percentage considered themselves well-prepared to safeguard their money from fraudsters. Just 37% are confident they could identify every form of fraud, and 29% are unsure whether they could detect an attempt before it is too late.
“Financial fraud is a direct threat to Americans’ financial security, and spotting a scam is not the same as being prepared to stop one,” said CFP Board CEO K. Dane Snowden. “Our research suggests many people may be more vulnerable than they realize — and fraud does its damage in that gap. A CFP® professional can help identify vulnerabilities, recognize warning signs early and build financial resilience to face the future with confidence.”
The study also examined the level of confidence felt by Americans in detecting fraud during a time when scams are growing more sophisticated. 71% of those surveyed feel confident spotting traditional phone and email phishing, but did not feel the same way when it came to AI voice impersonation (64%), deepfake video calls (61%) and personalized text or email scams that use real names and account details (58%). Overall, only 37% are confident they could identify every form of financial fraud.
While Americans aged 45 and under are significantly more confident than their older peers in detecting digital fraud, they lose money to fraud at higher rates (32% vs. 20%) and report greater exposure to investment scams (29% vs. 14%).
The most common types of fraud encountered were phishing and smishing (62%) and imposter scams (51%). The report noted that the primary delivery channels for these fraud attempts — text messages (57%), email (55%) and phone calls (54%) — are the same tools Americans rely on for everyday financial communication.
Situations involving financial fraud, scams and exploitation are increasingly hitting close to home for many people. The report found that three in five Americans have personally encountered financial fraud or know someone who has in the past three years, and 43% report that they or a household member were directly targeted. 24% of Americans have lost money to fraud and 52% of those lost $500 or more.
“Given Americans’ varying confidence in their loved ones’ abilities to identify financial fraud, more conversations on the topic can help raise awareness and promote fraud avoidance, the CFP Board said. “Three in 5 Americans report having had specific conversations with their spouses or significant others in the past year about financial fraud.”
But just 32% have had conversations with their parents about fraud, and only 21% have talked with their young children. In addition, 37% of Americans worry their grandparents could not detect fraud targeted at them, yet only 6% have had that conversation in the past year.
The research also found a need for more fraud victims to come forward to disclose what happened. One in three never contacted a bank, law enforcement, or any government agency after the incident. Among those who chose not to report, 38% did not know who to contact, and one in four cited embarrassment or shame.
The CFP Board emphasized the need for a trusted conversation surrounding the issue of financial fraud, noting that CFP® professionals are trained to help clients identify fraud risk, respond quickly when an incident occurs and integrate fraud risk planning into a broader strategy for long-term financial security.
“Our research demonstrates that most fraud victims face real, practical barriers after an incident: confusion about who to contact, uncertainty about the process and the weight of an experience they weren’t prepared for,” said Kevin Roth, Ph. D., Managing Director of Research at CFP Board.“A trusted financial advisor can help cut through that confusion, connect clients to the right resources and make fraud risk planning a core part of how they protect their financial future.”
Read the full “Don’t Fall for It: Guarding Against Financial Fraud” report here.
yman Cotter PC represents advisors, brokers and other financial professional in all matters involving the CFP Board, including CFP Board investigations. Headquartered in Chicago, our securities attorneys represent clients nationwide. For more information relating to CFP Board investigations and discipline or other matters, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a free consultation.
