The reason everyone seems to have a scam story these days isn't due to an increase in reporting; it's because scams have become a near-universal experience. As underscored by a significant increase in the past five years of both reported incidents to the FBI and mainstream media coverage, scams are more frequent, more costly, and more difficult to discern than ever before.
The State of Scams USA 2025 report, conducted by the Global Anti-Scam Alliance (GASA) and sponsored by Iris Powered by Generali, showed that 77% of American consumers encounter scams on a daily basis, with over 70% indicating they had been scammed in the last 12 months. The report also found that one in five Americans lost money to a scam in the same time frame, with an average of over a thousand dollars lost per person and over $64 billion stolen in total.
With scams and fraud on the rise, consumers have turned to institutions and communication platforms for help. Almost three in four (74%) respondents who had experienced a scam reported it to an authority or company for assistance. That is consistent with the findings of the Iris 2025 Identity and Cybersecurity Concerns survey (“ICC”) conducted in April, which found that most consumers reach out directly to companies that have been part of a data breach. However, over half the time, nothing is done – with 57% of reported incidents having no discernible action taken. Even worse, of the 82% of U.S. consumers who reported scams to payment services or financial institutions, less than half (44%) were able to partially recover money in the end, and 38% received nothing back at all.
This gap between consumer action and institutional response feeds a dangerous sense of futility: if reporting scams doesn’t lead to meaningful outcomes, why report at all? This mentality can allow scammers to gain the upper hand. Americans need an ally in the fight to defend themselves against scammers, and they’re expecting financial and communications platforms to step up.
Digital Platforms Top the List for Scammer Channels
By and large, scammers are targeting consumers digitally. Most consumers reported encountering scams via SMS messenger, followed closely by emails and phone calls. Americans reported that 82% of scam attempts occurred on platforms with direct messaging capabilities, including social media, instant messengers, online marketplaces, and even digital ads.
In terms of platforms, Gmail ranked highest in reported instances at 45%, followed closely by Facebook at 41%. TikTok, Snapchat, and X (Twitter) ranked notably lower, but consumers tended to take the longest to recognize that they were being scammed on those platforms.
Consumers are offered little recourse through the platforms themselves. Recent reports indicate that large social or digital communications platforms can take weeks to act when scams are reported. This lack of urgency contributes to an erosion of consumer trust.
Most Lose Money Through Debit Cards and PayPal
Debit cards were the most common method used by scammers, accounting for 30% of reported losses to fraud, followed by PayPal at 25% and credit card payments at 23%. When fraud occurred, most consumers discovered it themselves: 66% discovered it on their own, while only 14% were alerted by their bank or financial services provider.
Americans who were affected overwhelmingly reported the fraud to banks or payment services, with 82% reaching out for support once they realized they had been scammed. But again, this ultimately had mediocre returns for consumers. Likewise, according to Iris' ICC survey, 46% of Americans say their first call would be to their bank after receiving a notification of a data breach, making it their top choice.
These patterns make it clear that consumers view banks and payment platforms as their frontline defense. But when response and recovery prove insufficient, trust is eroded.
Consumers Blame Commercial Organizations – But U.S. Laws Don't
Consumer protection authorities are contacted only 12% of the time, compared with banks or payments services at 25%.
While one in three Americans believe that commercial organizations should be responsible for protecting consumers, U.S. laws and regulations don't agree. For instance, authorized user payments, such as those through platforms like Zelle or Venmo, have no legal requirement for banks to reimburse customers. Additionally, newer scams like imposter scams or AI/deepfake scams are not covered by older FTC regulations and U.S. laws, leading to confusion and denials from banks to reimburse victims.
Where Third-Party Identity Protection Services Fill the Gap
Consumers need stronger support in the fight to protect their identities – and wallets – online. Yet major commercial organizations and digital communications platforms are failing to provide adequate protection.
Iris' ICC survey found that most consumers want a comprehensive, all-in-one solution and are willing to pay for it. While just three in 10 Americans indicated they follow all recommended data protection practices, close to eight in 10 said they would likely use identity protection features if they were integrated into an app they already use, with banks and credit card providers being one of their top picks to purchase from.
Third-party identity protection solutions help close critical gaps. Tools that monitor for compromised data on the dark web, help to spot scams, and offer expert fraud recovery services aren't new but are increasingly sought after. These services not only accelerate resolution by managing outreach to banks and authorities but also help ease the emotional toll of falling victim to scams – a cost that's often overlooked. Additionally, they often take critical steps on the consumer's behalf to prevent further damage.
Consumers want accountability from today's institutions, but they also want protection and peace of mind. There are bills currently under review by the U.S. Congress – like the Protecting Consumers from Payment Scams Act – that are aimed at addressing accountability gaps with banks and payment providers. But responsible businesses shouldn't wait for laws to catch up with the rising threats; they should show up today for their customers and be the ally they need by offering protection.
Not only is it the right thing to do – but it's a powerful investment in customer loyalty and trust.
