House Republicans cite sharp rise in reported fraud losses

Americans reported $15.9 billion in fraud and scam losses in 2025, a 28% increase from the previous year and an 1,800% rise since the Federal Trade Commission began tracking the issue in 1997, according to a report released Wednesday by the House Financial Services Committee. The Republican-led committee said the scale of reported losses points to a growing consumer-protection and financial-crime challenge for banks, payment companies, technology platforms and law enforcement.

The report argues that fraud and scams have reached “unprecedented” levels, citing the spread of online attacks and the speed with which stolen money can now move through the financial system. It said almost three-quarters of Americans have experienced some type of online scam or attack, and that about 15 million Americans were victimized last year.

Rep. French Hill, the Arkansas Republican who chairs the committee, said in a release that financial fraud is among the fastest-growing threats facing Americans and is costing consumers and financial institutions billions of dollars each year. Hill said law enforcement, regulators and financial firms need tools to keep pace as fraudsters become more sophisticated.

Technology and faster payments reshape the risk

The committee’s report said developments in technology have helped scammers broaden their methods. It cited artificial intelligence deepfake videos and encrypted messaging services such as Telegram as examples of tools that can make it harder to identify criminals. The report also said criminals are testing newer payment methods as part of fraud schemes.

Faster payment channels can compress the time available to stop or reverse a fraudulent transfer. The report said wire transfers and payment applications can allow scammers to complete schemes more rapidly and move proceeds out of the financial system before financial institutions can recover them.

The mechanics are central to the policy concern. In a conventional fraud case, a bank, consumer or intermediary may have a brief window to flag a suspicious transaction, freeze funds or contact another institution. As payment rails become faster, that window can narrow, particularly when funds pass through multiple accounts or move to channels that are harder to trace.

Younger adults face elevated exposure

The report said older Americans have historically been viewed as primary targets for fraud attempts. It also said people ages 20 to 29 now experience a success rate for fraud attempts that is nearly twice that of senior citizens, a finding the report said aligns with PYMNTS Intelligence research on young adults being tricked by suspicious links.

The committee proposed several responses, including a more cohesive national reporting system and targeted sanctions against foreign scam operators and those that assist them. It also called for reducing regulatory barriers that it said limit information sharing among financial institutions and technology companies.

The report recommended a public-awareness campaign modeled on “Click It or Ticket,” the seatbelt-enforcement campaign, to encourage fraud prevention. It also urged more compassionate treatment of victims and challenged the perception that victims “should have known better,” saying that approach could help address the psychological effects of scams and fraud.

This story draws on original reporting from PYMNTS.