AI-Powered Fraud Targets 9 in 10 Americans as Consumer Confidence in Data Privacy Plummets

AI-Powered Fraud Reaches Near-Universal Scale

A new study by Consumer Reports, Aspen Digital, and the Global Cyber Alliance reveals that 9 in 10 Americans have been targeted by digital scams or cyberattacks1

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. The research, which polled nearly 5,000 U.S. adults in March and April, found that 17% of consumers have lost money to a digital security breach2

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. "That's not a statistic, that's almost everyone we serve," said Phil Radford, Consumer Reports CEO. "AI is making fraud faster, cheaper, and more personal, and no one can outsmart that alone"1

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The Consumer Federation of America estimates that Americans lost $148 billion to online scams and crimes in 2025, representing more than $1,100 for every U.S. household and a 26% increase from the previous year3

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. AI-enabled fraud alone added over $6 billion in losses last year3

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. Older Americans face particularly severe impacts, with reported losses among people age 60 and older increasing more than 59% in 2025, averaging $38,500 per reported incident according to the FBI3

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Decline in Consumer Confidence Accelerates

Consumer confidence in data privacy has collapsed dramatically. The study found that only 32% of U.S. adults feel confident in the privacy of their sensitive data, including Social Security numbers and financial information, down from 48% in 20251

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. More alarmingly, 29% of Americans aren't confident at all in their personal data privacy, nearly double the 16% reported in 20251

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Despite growing concerns, many Americans are taking protective measures. The Consumer Reports study shows that 69% of respondents look closely at texts and emails before clicking, 60% use multi-factor authentication, and 48% enable automatic software updates1

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. However, experts warn that individual efforts alone cannot address the scale of AI-powered fraud.

AI Is a Growing Threat in Cybersecurity

AI technology is fundamentally changing the nature of cyberattacks by lowering barriers that previously made sophisticated scams costly or laborious. "AI allows scammers to make better use of the personal data they have on consumers, and lowers the cost of reaching even more people with those personalized messages," explained Stacey Higginbotham, a Consumer Reports cybersecurity fellow2

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. She noted that one in every five scams now includes some kind of customization, a share expected to grow quickly2

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Criminals are using AI to create increasingly convincing personalized scams with minimal effort, from deepfake videos of public figures promoting fake Medicare benefits to voice cloning technology that impersonates loved ones in distress3

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. Colin Ferris, a cybersecurity expert at Silverfort, noted that "prior to AI, the level of effort required to personalize something was too great. You couldn't personalize 50 phishing messages; it was too much work"2

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Tech Corporation Accountability Under Scrutiny

Experts emphasize that scammers are only part of the problem. The Better Business Bureau's latest scam risk tracker report found that social media was the contact method with the highest percentage of reports involving monetary losses, with more than 87% of incidents resulting in financial harm. Facebook, Instagram, and TikTok ranked as the top platforms where scams originate3

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Internal Meta documents revealed that the company anticipated roughly $16 billion of its 2024 advertising revenue came from scams or prohibited goods. Even more troubling, scam advertisers could receive dozens of violations before Meta permanently removed them3

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. Brian Cute, president and CEO of the Global Cyber Alliance, stated that individual precautions "alone can't stop the abuse coming from upstream via insecure routing and maliciously registered domain names," adding that closing those gaps requires industry, government, and philanthropy working together2

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Call for Legislative Action and Platform Responsibility

Policy experts point to several legislative measures that could reduce online scam losses. Higginbotham noted that Congress could pass laws such as the federal SCAM Act or the SAFE Platforms Act that would penalize scammers who abuse online platforms with their malicious tactics1

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. The SCAM Act would hold social media platforms more accountable for scams on their sites4

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On September 30, more than 35 consumer protection, technology accountability, and civil society organizations launched United to Stop Online Scams with a National Day of Action focused on AI and tech-enabled fraud. The coalition released a PSA during a livestream featuring Sen. Mark Kelly and Rep. Val Foushee that drew more than 50,000 views3

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. Konstanze Frischen, acting executive director of Aspen Digital, stated that "the status quo on frauds and scams prevention is clearly broken," calling for solutions spanning industry, government, and civil society4

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Experts recommend that security measures like multi-factor authentication, which might once have seemed redundant, are now essential2

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. The "Take9" initiative encourages people to pause for nine seconds before clicking, downloading, or sharing a link, prompting users to verify suspicious texts or emails2

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. Watch for increased regulatory pressure on social media platforms and AI companies as lawmakers grapple with balancing innovation against consumer protection in an era where AI-powered fraud has become nearly universal.