Nearly 40% of Gen Z report fraud losses as scams shift online: TransUnion

Gen Z is increasingly being targeted by online scammers: Nearly 40 percent of Gen Z consumers reported losing money to digital fraud in the past year.

The reason behind this is that members of this generation are more likely to use gambling and betting platforms, social platforms such as forums and dating apps and video games – all of which are experiencing a rise in fraud attempts, according to a new report from TransUnion.

The solution to the spread of fraud is increasing identity defenses, the consumer credit agency notes in its H1 2026 Top Fraud Trends Update.

Although digital fraud rates are declining overall, more sophisticated fraud schemes, driven by the rise of generative AI and synthetic identities, are causing greater losses for consumers, according to Naureen Ali, U.S. head of fraud at TransUnion.

“Addressing this requires a new generation of identity-centric defenses that combine advanced analytics, adaptive authentication and multilayered fraud detection,” says Ali. “Organizations must match fraudsters’ technological innovation to stay ahead of rapidly changing schemes.”

The firm found that about one in six U.S. consumers lost money to scams conducted via email, phone calls, texts, or online channels in 2025, with median losses reaching US$2,307. Credit card or fraudulent charges were the leading cause of digital fraud losses, accounting for a third of cases. Identity theft followed closely at 29 percent, while account takeover (ATO) affected one in four (27 percent) victims.

TransUnion also published global fraud data, surveying a total of 24 countries. The company found that account creation has become a growing target for fraudsters across the world.

Globally in 2025, more than eight percent of account creation attempts were flagged as suspected digital fraud, an 18 percent jump from the year prior.

“Instead of bypassing controls during account use, they increasingly exploit vulnerabilities at account creation, concealing identity manipulation until losses mount,” says Ali. The solution is to detect sophisticated identity risks at onboarding, she adds.

Over a quarter of global consumers said they lost money to digital fraud, reporting a median loss of $1,671. Money mules and third-party seller scams on legitimate ecommerce sites were the leading causes of loss (24 percent), followed by voice phishing or vishing (23 percent).

The report also offers data on other types of fraud, including phishing, smishing, unemployment fraud and social engineering.