How fraud is reshaping behaviour and trust in North America

A new report from LSEG Risk Intelligence, based on recent consumer research in North America, highlights the complex and interconnected impact of financial fraud. Far from being limited to financial loss, fraud is shaping how people feel, behave and engage with the financial system – often with lasting consequences for trust.

• Financial fraud across North America is becoming more prevalent, with consumers facing increasingly sophisticated and evolving scam tactics. 
• Beyond financial loss, fraud is driving significant emotional and behavioural change, with lasting impacts on trust and decision-making.
• While individuals are taking steps to protect themselves, gaps in awareness highlight the need for greater industry collaboration and education.

For many consumers, fraud is no longer a distant threat. Nearly eight in ten respondents across the United States and Canada believe that scams are on the rise, with over half saying the increase is significant.

What’s more telling is how close to home fraud has become. In the past two years, 35% of respondents say they have been directly targeted, and 37% know someone who has. For a significant share, the consequences are real: around one in three of those targeted report losing money.

This growing proximity shifts fraud from something abstract to something immediate, actively shaping how people think about everyday financial interactions

Fraud tactics are also evolving. Phishing (59%) and payment scams (46%) remain the most common entry points, but the defining feature is how credible these scams have become.

Many victims describe experiences that appeared professional and trustworthy. This is reflected in how long it can take to recognise fraud: 56% say it took up to a month to realise what had happened, while a concerning minority only identified the scam much later, in some cases more than a year later.

When reflecting on why scams succeed, 38% point to how convincing they appeared, while others highlight missed warning signs or the pressure of the moment. In Canada, respondents are slightly more likely to cite fear of missing out as a contributing factor.

Taken together, this suggests that fraud today is not only a technical challenge. It is increasingly driven by an understanding of human behaviour.

While financial loss is often the headline, the emotional consequences are just as significant.

Feelings such as anger and frustration are the most commonly reported, affecting close to six in ten respondents across both the US and Canada. Many also experience anxiety, guilt or even paranoia following a scam.

This highlights an important point: fraud does not just affect finances. It can undermine confidence, create lasting emotional strain and change how individuals perceive risk.

One of the clearest outcomes of fraud is how it changes behaviour. Among those affected, 99% report making some form of adjustment afterwards.

For many, this means becoming more cautious: 45% say they are more careful when making online payments, while 37% actively avoid certain types of transactions or channels altogether.

While these shifts can help reduce exposure to risk, they also introduce friction, making everyday financial activity feel less straightforward than before.

Alongside these behavioural changes, there is a broader erosion of trust. 34% of respondents report reduced confidence in people or organisations as a result of fraud.

This has implications beyond individual experience. Trust underpins engagement with the financial system, and when it begins to weaken, the impact can ripple across the wider ecosystem.