TransUnion’s report finds that even though suspected digital fraud is decreasing, more sophisticated schemes are increasing losses for consumers.
A new TransUnion analysis finds that identity-based schemes, credit card theft, and fraudulent billing attacks are causing the greatest financial losses to U.S. consumers. These losses come as the digital fraud landscape becomes more complex, in part due to the increasing sophistication of AI-powered fraud.
According to TransUnion’s Top Fraud Trends Report H1 2026 Update, one in six U.S. consumers said they lost money to digital fraud (email, online, phone, or text messaging scams) in the past year, with a median reported loss of $2,307. Generative AI (GenAI) is likely accelerating the scale and sophistication of criminal activity, allowing fraudsters to target both consumers and businesses more accurately and quickly.
Globally, 26% of consumers across 18 countries and territories surveyed said they lost money to digital fraud in the last year, with a median loss of $1,671. In contrast, data from the United States reveals striking differences. Americans were disproportionately affected by stolen credit cards and fraudulent billing schemes. One-third of U.S. consumers who have lost money to digital fraud cite these attacks as the most commonly reported category cause in the country, significantly higher than 19% globally.
“Criminals are weaponizing both consumer trust and emerging technology,” said Noreen Ali, head of U.S. fraud at TransUnion. “As GenAI accelerates the sophistication and scale of criminal activity, the threat landscape for U.S. consumers and businesses is evolving more rapidly than ever before. Addressing this requires a new generation of identity-centric defenses that combine advanced analytics, adaptive authentication, and multi-layered fraud detection. Organizations must keep pace with fraudster innovations to stay ahead of rapidly changing schemes.”
Theft of credit card information compromised through phishing, website skimming, account takeover, or other criminal means remains the leading cause of consumer fraud in the United States. Consumers also cited increased incidences of identity theft (29%), account takeovers (27%), and third-party seller fraud on legitimate e-commerce sites (24%) as leading causes of financial loss. These patterns primarily reflect global fraud trends, but the impact is more pronounced in the United States due to the high number of digital transactions.
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Globally, Gen Z consumers are the most likely to report financial loss, with 39% saying they lost money to digital fraud in the past year. U.S. Gen Z consumers show a similar pattern, with 38% reporting losses, the highest rate of any U.S. generation. This increased exposure may be due to Gen Z’s increased use of gaming platforms, crypto exchanges, and social apps that are commonly targeted by scammers.
Rates of digital fraud charges are decreasing in the US, but risks remain across key sectors
Suspicions of digital fraud have decreased, but consumer losses have increased. Suspected digital fraud rates* for attempted transactions involving U.S. consumers are decreasing among TransUnion’s business customers, a trend seen globally. Nevertheless, this decline does not necessarily indicate a decline in criminal activity. Rather, it may reflect a shift toward tactics designed to maximize ROI through the use of AI.
At the time of account creation, 8.3% of attempted transactions worldwide in 2025 were suspected to be digital fraud, representing an 18% year-on-year increase.
“Scammers are moving upstream,” Ali continued. “Instead of bypassing controls during account use, criminals are increasingly exploiting vulnerabilities at account creation and concealing identity operations until losses are compounded. These techniques allow criminals to circumvent rule-based systems built for different threat environments. To address this, enterprises need proactive, intelligence-driven solutions like TransUnion Fraud Solutions that detect advanced identity risks during onboarding.”
Industries facing the highest digital fraud risk in the US
TransUnion industry analysis shows that sectors centered around consumer interaction, social connections, and entertainment faced the highest digital fraud pressures for transaction attempts involving U.S. consumers in 2025.
Although the number of fraud incidents in many U.S. industries has decreased year-over-year, risks remain elevated in some areas. The community sector, which includes online dating and forums, saw a 7% increase in suspected digital fraud, highlighting increased exposure in trust-based environments. Gaming also continues to face significant risks, with nearly 1 in 10 US transactions reported to be suspected of digital fraud.
“As criminals increasingly use new technology to perpetrate sophisticated fraud, it’s more important than ever for consumers to protect their personal information,” said Margaret Poe, director of consumer credit education at TransUnion. “Regularly checking your credit report is a fundamental step, and anyone who believes they are being targeted or victimized by fraud should also consider freezing their credit file with the major credit bureaus.”
TransUnion has reached its conclusions regarding digital fraud and data breaches based on intelligence from TransUnion’s suite of fraud prevention solutions.
Specific country and region data included in the report includes the United States, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, Philippines, Puerto Rico, Rwanda, South Africa, Spain, United Kingdom, and Zambia. For more information and insight into global fraud trends, download the TransUnion H1 2026 Update to the Top Fraud Trends Report.
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