Fraud in America has diverged into two distinct challenges across age groups, new Abrigo survey finds

⦿ Executive Snapshot

• What: A national survey reveals a generational divide in fraud concerns, highlighting deepfake scams for younger Americans and impersonation fraud for older Americans.
• Who: Abrigo, financial institutions, consumers aged 18-34 and 55+
• Why it matters: Financial institutions must adapt their fraud strategies to address the distinct concerns of different age groups to effectively protect their customers.

⦿ Key Developments

• Over 50% of Americans under 35 are concerned about deepfake scams, while over 60% of those over 55 are worried about impersonation scams.
• Nearly 39% of Americans report being victims of fraud, with 20% experiencing bank fraud in the past year.
• Among older Americans, 66% of those aged 55-64 are aware of impersonation scams, and 61% of those 65 and older recognize this threat.

⦿ Strategic Context

• The rise of digital transactions and platforms has made younger demographics more susceptible to innovative fraud techniques, such as deepfakes.
• Older Americans often rely on traditional authority figures, making them more vulnerable to impersonation scams that exploit their trust in banks and government agencies.

⦿ Strategic Implications

• Financial institutions must implement tailored fraud protection strategies that cater to the unique needs of both younger and older customers.
• A failure to adapt could lead to a loss of customer trust and banking relationships, particularly among younger consumers who expect rapid responses to fraud threats.

⦿ Risks & Constraints

• Regulatory challenges may arise as institutions navigate the need for varied communication and protection strategies across age demographics.
• The evolving nature of fraud techniques, particularly with the rise of AI, poses ongoing risks that may outpace existing protective measures.

⦿ Watchlist / Forward Signals

• Upcoming government legislation aimed at addressing fraud could signal a shift in institutional responsibilities and consumer protections.
• The effectiveness of new communication tools in verifying legitimate institutions may indicate success in combating fraud among older Americans.