A Look at the Most Targeted Demographics for Financial Scams

Financial scams are costing U.S. consumers billions each year, and certain customer groups are far more vulnerable than others. In 2024, nearly one-third of U.S. adults reported losing money to fraud or scams. For banks and payment service providers, these aren’t just numbers—they reveal patterns of vulnerability that can translate into operational risk, financial loss, and reputational damage. Understanding which consumers are most targeted, and the economic and psychological factors behind their susceptibility, allows institutions to implement tailored, proactive fraud-prevention strategies rather than relying on generic controls.

The patterns are clear: age, income, digital behavior, and financial literacy all influence who scammers target. By analyzing these factors, banks and payment providers can develop segmented fraud prevention measures—from demographic-specific alerts to real-time AI-assisted monitoring—that protect customers more effectively and strengthen trust in the institution.

Who is Being Targeted—and Where the Pressure Comes From

Scammers cast a wide net, but research shows certain demographic segments face heightened exposure:

Older adults (60+ years): According to the Federal Trade Commission (FTC), reported losses by older adults (60+) to impersonation scams rose more than four‑fold since 2020—with aggregate losses reaching hundreds of millions. This group is frequently targeted by tech support scams, government agency impersonations, and fraudulent calls purportedly about pension or benefit issues.

Younger adults (18–40 years): Contrary to common belief, younger generations aren’t immune. According to a 2022 FTC data review, adults aged 18–59 were 34% more likely than older adults (60+) to report losing money to fraud; many scams began on social media or via job‑offer schemes.

Lower‑income households: A recent survey by Bankrate found that Americans earning under $50,000 annually had the highest likelihood (37 %) of having experienced a financial fraud or scam since January 2024.

Racial and ethnic minorities: Research from the FINRA Investor Education Foundation found that Black or African‑American participants were more likely to “engage” with scam communications—even though the victimization rates may not differ significantly across race/ethnicity.

Why these pressures matter:

• Older adults may have accumulated savings, pensions, or home equity, making them financially attractive.
• Younger adults are heavy users of digital channels, social media, and peer‑to‑peer payments, which creates new vectors for scams.
• Lower‑income consumers often face financial stress, fewer buffers, and may be more responsive to “too good to be true” offers.
• Minority consumers may face language barriers, lower financial literacy resources, or distrust of institutions, which scammers exploit.

Why Traditional Fraud Controls Are Missing the Mark

Financial institutions devote significant resources to transaction monitoring, behavioral analytics, and device fingerprinting. Yet, the shifting demographics of scam victims indicate gaps:

• Human deception trumps technical detection. Many scams rely on social engineering—convincing the victim to authorize the payment themselves. Once they do, the outflow often bypasses fraud rules.
• Varying contact vectors. For younger users, scams may start in a social media message or fake job posting; for older adults, a phone call impersonation. One size doesn’t fit all. (Federal Trade Commission)
• Data quality and identity inertia. Institutions may have limited visibility into what drives a payee’s or payer’s vulnerability—such as cognitive decline, trust in phone calls, or impulse‑driven digital decisions.
• Lack of segmentation in prevention. Fraud controls designed for “average” customer behavior may under serve high‑risk subgroups whose patterns differ.

Tailoring Fraud‑Prevention Strategies: A Segmented Approach

For banking and financial institutions, the goal is not just to reduce losses; it’s to reduce risk across your customer base in a way that strengthens trust and operational resilience. Here are actionable directions:

1. Segment your customer base by vulnerability indicators. Use internal data (age band, digital channel usage, payment history, income proxy) to flag higher‑risk cohorts.
2. Design outreach and flows by demographic.
3. For older customers: reinforce education on phone call scams, implement optional verification for large transfers to unfamiliar payees, and highlight customer service channels.
4. For younger/digital‑native customers: monitor social media‑initiated payment flows, exit scam indicators, and rapid peer‑to‑peer transfers to new payees.
5. For lower‑income groups: increase awareness of “advance‑fee” or “relief‑offer” scams, ensure promotion of trust signals, and support accessible reporting paths.
6. Incorporate real-time, AI‑powered scam detection capabilities to strengthen your fraud controls. Traditional rule-based systems are limited, but advanced AI can analyze payee names and IBAN patterns, link new payees to known risk networks, and monitor communications across email, SMS, and voice for signs of impersonation or urgency. It can also adapt customer risk scoring in real time based on behavior and demographic indicators, helping your institution stay proactive rather than reactive.
7. Feedback‑loop and test controls. Track match rates, override volumes by segment, and evolution of scammers’ tactics by demographic. Use that data to refine customer journey flows and adjust messaging.
8. Collaborate across functions. Fraud, payments, compliance, customer service and data analytics teams must operate in alignment. For instance, a phone scam targeting older adults must trigger a workflow at customer service that reflects education and recovery support.

Turning Insights into Actionable Fraud Prevention Strategies

Financial scams are not random—they exploit predictable patterns across different consumer groups. By recognizing these vulnerabilities and adapting fraud prevention strategies accordingly, financial institutions can proactively reduce losses, safeguard customer trust, and maintain operational stability. The insights into which customers are most targeted empower banks and payment providers to design smarter, more precise defenses, turning awareness into action and creating a safer financial ecosystem for everyone.

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