53% of Scam Victims Recover Money When They Tell Their Bank

A scam often works because the payment happens before the victim has time to think.

More than half of scam payments are made within 24 hours, according to “Financial Scams and Consumer Trust,” a November PYMNTS Intelligence report commissioned by Block.

Based on a survey of 15,110 consumers in the United States, the report found that 19% of consumers said they have experienced at least one scam in the last five years. The research also showed that scams do more than drain accounts. They reshape how consumers bank, shop and decide whom to trust.

Key findings from the report:

In the past five years, 19% of consumers said they experienced at least one scam.

Nearly two-thirds of victims made payments within 24 hours, showing how strongly scammers rely on urgency.

The share of victims who reported a scam to their financial institution and recovered most or all of their funds was 53%, compared with 12% of those who did not report it at all.

Scam losses can feel so hard to prevent because many consumers are not making a bad choice after days of deliberation. They are reacting to pressure in real time.

The report found that 59% of victims sent money directly to the scammer, while 41% gave up account details that were later used to steal funds. That means banks, FinTechs and payments players are dealing with a problem that is as much about timing and intervention as it is about authentication and fraud monitoring. Stop the payment fast enough, and the outcome can change. Miss the window, and the damage spreads fast.

Consumers who do tell their bank or credit union what happened have a much better chance of getting money back and retaining confidence in the institution. According to the data, 77% of victims reported the incident to their financial institution.

Among people who recovered most or all of their money, 90% said they believe their institution will help protect them from being scammed again, compared with 70% among those who recovered nothing. Trust can be rebuilt when financial providers respond clearly and quickly.

Millennials are the most likely generation to report being scammed, at 24%, while baby boomers and seniors are the least likely, at 14%. Email and phone calls remain the top entry points, although 24% of Generation Z victims were first reached on social media. In 81% of scams, fraudsters posed as trusted authorities, friendly strangers or personal contacts.

The report found that 42% of victims considered switching banks after a scam, while 19% actually did. Even so, faster warnings, simpler reporting and better education can still make a measurable difference for consumers and the institutions trying to keep them safe.

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