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Scams powered by advanced artificial intelligence are increasingly targeting U.S. consumers who have fallen victim to IDS and credit card theft and fraudulent charge schemes, a new analysis finds.
One in six U.S. consumers said they lost money in the past year to digital fraud in the form of email, online, phone, or text message scams, according to TransUnion’s latest Top Fraud Trends report. The median reported loss was $2,307.
“Fraud is big. It’s growing, it’s everywhere, and it’s not going away,” Clint Rowley, TransUnion’s vice president of global fraud solutions, told USA TODAY.
Generative AI may have accelerated the scale and sophistication of criminal activity.
While AI is a powerful tool that companies like TransUnion can use to protect consumers, fraudsters can and do use it for their own benefit, Lowry said.
“With the advent of AI, we have incredibly specialized fraud plans that can be executed very quickly and easily by anyone with very limited resources,” he said.
Digital fraud is on the rise
The report says Americans are disproportionately affected by credit card theft and fraudulent charges. One-third of U.S. consumers who lost money to digital fraud cited such attacks as the cause. This is the most reported category in the country and significantly higher than the global rate of 19%.
“Criminals are weaponizing both consumer trust and emerging technology,” Noreen Ali, head of U.S. fraud at TransUnion, said in a press release.
Theft of credit card information through phishing, website skimming, and account takeover are the leading methods of consumer fraud in the United States. Phishing in the form of fraudulent emails and QR codes aimed at stealing data or social posts was most commonly reported, with 39% of consumers saying they had been targeted.
What industries have the most fraud?
According to the report, sectors focused on consumer interaction, social connections, and entertainment had the highest number of fraud incidents in the United States. Online dating sites increased by 7%, and nearly 1 in 10 U.S. transactions on gaming sites were flagged for digital fraud.
There are also generational differences, with Gen Z consumers reporting the most fraud. In the US, 38% reported a loss, the highest of any generation. TransUnion said this may be due to Gen Z’s heavy use of gaming platforms, crypto exchanges and social apps, which are commonly targeted by scammers.
What can consumers do to protect themselves?
Lowry offered some tips to protect yourself from scams, including using different strong passwords for your accounts, using a password manager, and using two-factor authentication methods. Checking your credit report and implementing a credit freeze to protect your credit report can also be helpful, he said.
Lowry said people should protect their identity and avoid giving too much information online, including oversharing on social media, because scammers could use that information to hack into their accounts.
Scammers “prey on people’s good intentions. They prey on people’s charity, and in some cases they prey on fear,” Rowley said.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
