Most Americans think they can spot a scam, but Citi study reveals otherwise

investmentnews.com:

Being aware of the potential of financial scams is an essential life skill these days but being overconfident leaves millions of American adults vulnerable to fraud or identity theft.

A new survey from Citi found that 90% of respondents believe they can identify and prevent financial scams but more than a quarter of the 2,300 who took part in the online poll have been victims already with typically tech-savvy Gen Zs the most likely to say this (32%), despite a recent report showing over 60s are at high risk of cybercrimes.

Being scammed means consequences to victims’ financial health (71% said so) including setting back their savings, sending them (deeper) into debt, or lowering their credit score.

Federal Trade Commission data showed that $8.8 billion was lost in reported scams in 2022, up 30% from the previous year.

Worryingly, despite the confidence of those who participated in the Citi poll, 13% could not identify any of the 14 common scams presented to them and only two-thirds routinely check their account statements and credit scores to monitor for unusual activity. Awareness of phishing (54%) and bank impersonation (51%) are relatively high.

“Today’s scammers are nimble, well-organized and aided by sophisticated tools,” said Michael Steinbach, Head of Financial Crimes and Fraud Prevention at Citi. “Scammers often deal in volume, and it only takes one successful attempt to profit. They are counting on you to be too busy or confident to spot red flags — and the consequences can be financially devastating. Particularly during the holiday season when scammers are very active, it’s important to remain vigilant, listen to your instincts and turn to trustworthy sources of fraud and scam information to protect yourself.”