Many Americans have gaps in their awareness of financial fraud that may leave them vulnerable to scams, according to a new report released by the FINRA Investor Education Foundation (FINRA Foundation).
The report, entitled Patterns in Fraud Awareness: What Comes to Mind When Americans Think About Financial Fraud, notes that losses from financial fraud likely exceeded $200 billion in 2025.
In a nationally representative study of 1,509 U.S. adults, respondents were asked to list common schemes or tactics fraudsters use, exposing potential gaps in knowledge.
Respondents were asked to describe fraud schemes or tactics in their own words without providing any predefined categories, measuring not just whether people know about fraud, but what they are primed to think about when unprompted.
The responses were classified into five broad categories of fraud: consumer-based (fake or misrepresented products/services), opportunity-based (false promises of money or reward), threat-based (scams using fear to pressure quick action), imposter-based (posing as a trusted person or entity) and identity-based fraud (scams where personal information is stolen or misused).
Researchers found that identity-based fraud, the most recognized category. was top-of-mind for only half of those surveyed.
Other fraud types—including consumer-based, imposter based, opportunity-based and threat-based were each referenced by only 14–20 percent of respondents.
“This new research exposes a knowledge gap that fraudsters actively exploit. However, it also shows that Americans with higher financial literacy were better able to identify fraud, and that awareness of certain fraud schemes was associated with avoiding losses,” said FINRA Foundation President Christine Kieffer. “Understanding which types of fraud are top-of-mind for consumers and which are lesser-known is important for developing effective fraud prevention education, strategies and tactics that address both familiar and emerging schemes. This is an area of focus at FINRA and the FINRA Foundation every day.”
The research was conducted in collaboration with RAND, a nonprofit research organization that develops solutions to public policy challenges.
FINRA detailed the key findings of the study:
- Limited awareness of common fraud types: Only 50% of respondents mentioned identity-based fraud when asked to describe common schemes. Far fewer mentioned threat-based fraud (20%), opportunity-based fraud (17%), consumer-based fraud (16%) and imposter-based fraud (14%).
- Fraud awareness varied across populations: Fraud awareness varied by demographics, but not uniformly. Adults under 40 were far less likely to mention consumer-based fraud than older adults (7% vs. 21%). Hispanic respondents were less likely to mention identity-based fraud than white respondents (38% vs. 52%). Lower-income respondents were half as likely to mention threat-based fraud as those earning $50,000 or more (12% vs. 24%).
- Financial literacy linked to greater fraud awareness: Respondents were given a financial literacy quiz to determine their understanding of key financial topics such as interest rates, inflation and risk diversification. Each additional correct answer on a financial literacy quiz increased respondents’ likelihood of mentioning nearly all fraud types.
- Fraud awareness tied to different outcomes: Respondents who mentioned imposter-based and identity-based fraud were more likely to report being targeted by a fraudster. Those who mentioned threat-based fraud were less likely to report losing money to a scam.
The researchers concluded that fraud awareness in the United States is unevenly distributed, with certain groups more vulnerable to victimization.
“While many adults are familiar with identity-based fraud, awareness of other common fraud types—including threat-based, opportunity-based, imposter-based and consumer-based fraud—appears much more limited,” the study’s conclusion states. “While people who didn’t mention a fraud type may still be aware of it, the fact that these schemes aren’t top-of-mind could leave them vulnerable to fraud.”
The researchers said their findings underscore the need for proactive educational campaigns, and said that improving financial literacy may enhance financial decision-making and strengthen people’s defenses against fraud. They add that given the difference in awareness among certain groups, “tailored, targeted fraud education campaigns might prove more effective than one-size-fits-all approaches.”
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