Money Scams Are Costing Americans Billions — Here’s What Most Get Wrong
Financial scams are becoming more common — and far more convincing — as fraudsters increasingly rely on artificial intelligence and other advanced tools. According to the Federal Trade Commission, consumers lost more than $12.5 billion to fraud in 2024, a 25% increase from the previous year.
While scams are surging, many Americans remain dangerously underprepared to deal with them.
Also See: 5 Ways To Protect Your Finances From New AI Scams
Find Out: 5 Signs You’re Losing Money Every Month — and How To Find the Leaks
In honor of Financial Literacy Month, MoneyLion published new research examining how Americans think about financial security, fraud prevention and the real consequences of being scammed. The survey of roughly 1,000 U.S. adults reveals a troubling gap between how protected people think they are and how exposed they actually may be.
Key Findings
44% of Americans say losing $100 to a scam would be a financial emergency.
45% say losing $1,000 would prevent them from paying basic bills.
1 in 3 Americans haven’t checked for password breaches in the past year.
25% reuse the same password or PIN across financial and non‑financial accounts "all the time."
56% believe their bank spots every suspicious transaction.
33% have personally lost money to a financial scam.
44% say they receive scam texts or calls every day.
Keep Financial Literacy Month going — learn how the MoneyLion app helps you track, manage and move your money in one place.
Why Even Small Scams Can Trigger Financial Emergencies
The average lost among scam victims in the United States was $3,858, according to a 2025 survey conducted by Gen, but the MoneyLion survey shows that far smaller losses can still derail household finances:
44% of Americans would consider losing under $100 to a scam a financial emergency.
An additional 28% would consider it an emergency if they lost between $100 and $500.
For women, the financial impact is even more severe:
48% of women would consider losing under $100 an emergency, compared with 39% of men.
50% of women say a $1,000 loss would make it impossible to cover essentials like rent, utilities or groceries.
These findings underscore a harsh reality: For many households, there's little to no wiggle room in their budgets to make up for unexpected financial losses.
Password Habits Are Leaving Many Americans Vulnerable
Regularly checking for data breaches is one of the simplest ways to protect financial accounts — yet many Americans don’t do it consistently.
While 48% have checked for breaches within the past three months:
11% haven’t checked in over a year
12% say they’ve never checked at all
Generational differences are especially pronounced:
Only 38% of adults ages 25 to 34 checked for breaches in the past three months
54% of Gen Xers ages 45–54 have done so
Experts recommend checking for breaches at least once a month. Checks can be done either manually through breach‑check websites or via monitoring services that alert users automatically.
Password reuse remains another major risk:
25% reuse the same password or PIN for financial and non‑financial accounts "all the time"
29% reuse credentials "sometimes" across multiple accounts
Younger adults are the most likely to reuse passwords “all the time,” with rates highest among those ages 18 to 34 — 39% of Americans ages 18 to 24 and 31% of Americans ages 25 to 34 admit to frequently repeating passwords.
Why Bank Fraud Monitoring Isn't Enough on Its Own
Many Americans place heavy trust in their financial institutions to catch fraud — more than half (56%) believe their bank will flag all suspicious transactions for them.
While many banks do offer round‑the‑clock monitoring, relying on that protection alone can be risky. Setting up transaction alerts, daily balance notifications and multi‑factor authentication provides an important additional layer of defense.
Americans Underestimate How Exposed Their Finances Really Are
Despite widespread awareness of scams, roughly 30% of Americans say they put a lot more effort into budgeting and saving than into protecting their money and accounts online. Yet, they know scams are common:
44% receive scam texts, phones and emails daily.
33% have personally lost money to a scam.
One of the best ways Americans can protect themselves from scams is to improve their financial literacy around the topic.
"Financial literacy gives consumers a critical edge because knowledge is power when it comes to money," said Joe Bernardo, head of fraud and claims operations at Wells Fargo. "While no one is scam-proof, when people understand how their money moves, what’s normal for their accounts and how scams typically work, it can help them make smarter choices and avoid costly mistakes."
Rudri Patel, certified financial health counselor at MoneyLion, said, “Financial literacy also means not reacting emotionally to a too-good-to-be true offer. Do your due diligence, ask questions and verify the information you're receiving. Scammers tend to focus on a person's vulnerabilities. Your superpower is to double-check and confirm the specifics before sending money or sharing any personal information.”
How Financial Literacy Helps Prevent Scams
According to Bernardo, most scams don’t begin with sophisticated technology — they start with psychological manipulation.
"Scams are designed to create fear, confusion or urgency," he said. "Financially informed consumers are more likely to recognize these manipulative tactics."
Financial literacy also shapes everyday money habits that can reduce risk, such as:
Reviewing account activity and statements regularly
Enabling alerts and multi‑factor authentication
Using digital payments instead of checks when possible
Creating strong, unique passwords
Limiting how much personal information is shared online
"These small actions can stop some big financial faux pas," Bernardo said.
How To Spot a Financial Scam Before It Costs You
Scammers continue to evolve, blending familiar tricks with new technology to appear more legitimate.
"That’s why education matters," Bernardo said. "Knowledge helps consumers recognize critical red flags."
Here are four key facts every consumer should know:
Fact #1: Urgency Is a Major Red Flag
Pressure to act immediately — especially when money or sensitive information is involved — is a hallmark of scams.
Fact #2: If It Sounds Too Good To Be True, It Probably Is
Promises of outsized returns, deep discounts or “once‑in‑a‑lifetime” deals should prompt skepticism.
Fact #3: Small Pieces of Personal Data Add Up
"Fraudsters find gold with just fragments," Bernardo said.
Even small bits of personal information can be used to impersonate victims or access accounts.
Fact #4: Don’t Trust Caller ID
"Scammers can spoof legitimate phone numbers by altering the caller ID," Bernardo said.
If you receive an unexpected request, hang up and contact the organization directly using official information. When in doubt, pause and ask for help.
Methodology: MoneyLion surveyed 998 Americans ages 18 and older from across the country between March 10 and March 16, 2026, asking 25 questions. These included:
To what extent do you agree or disagree with the following statement: "Being financially literate today includes knowing how to protect your money and accounts online."?
How confident are you that you would spot a scam or suspicious charge on your bank or credit card statements?
How often do you carefully review your bank or credit card statements for unfamiliar or suspicious charges?
Which of these money safety steps have you NEVER done? (Select all that apply.)
At what dollar amount would a scam officially become a financial emergency for you?
If you lost $1,000 to a financial scam tomorrow, which would best describe the impact on your life?
When was the last time you checked if any of your passwords or financial data were exposed in a data breach?
Which of these protections did you believe your bank or card company automatically handles for you? (Select all that apply.)
Which statement best matches what you believe about your bank's fraud monitoring?
Compared to how much effort you put into budgeting and saving, how much effort do you put into protecting your money and accounts online?
How often do you use the same PIN or password (or close variations) for both your bank/credit accounts and non‑financial accounts, like streaming or shopping?
Have you personally experienced losing money to a financial scam?
How often are you receiving scam texts, phone calls and emails?
MoneyLion used PureSpectrum's survey platform to conduct the poll.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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