The layers of the scam: Financial, emotional, behavioural 

A new report from LSEG Risk Intelligence unpacks the findings of our latest consumer research across Asia-Pacific (APAC), examining the layered impact of fraud on individuals and the broader financial ecosystem – both regionally and across the globe. 

While the report explores market-level and generational differences in detail, five regional findings stand out: 

• Fraud is increasing: 64% of respondents say scams are on the rise, with 37% reporting a significant increase.
• Direct exposure is common: 23% of APAC respondents have personally been targeted by a financial scam in just two years.
• Financial loss is widespread: Of those targeted, 42% report losing money. 
• Phishing and payment scams top the charts: Among those targeted, 49% experienced a phishing scam and 42% a payment scam. 
• Emerging scams affect younger individuals: Gen Z reports the highest exposure to deepfake scams (23%) and QR-code phishing, or “quishing” (23%).

Fraudsters continue to adapt their methods, making detection and prevention complex. 

Respondents reveal several reasons for the success of scams, including that the scam appeared professional and reliable (36%), not wanting to miss out on an opportunity (27%), and not noticing warning signs (25%).

Consumers also share how scammers access their data – from clicking on suspicious links or attachments, phishing attempts and data breaches (all 55%) to social media account breaches (48%) and weak or reused passwords (47%). 

Artificial intelligence is adding another layer of sophistication. Some scams are so convincing that 16% of victims say they only realised they had been scammed more than a year later.

A wide range of negative emotions affect respondents following a scam. Many report anger and frustration (47%), anxiety or fear (40%), or embarrassment and shame (30%). 

Scammers exploit vulnerabilities and trust, supported by the 13% of respondents who say they were feeling alone or lonely at the time of the scam, and the 12% who say they were referred by someone they trusted. 

These findings shine a spotlight on the underlying theme of emotional exploitation – exploitation that is changing how people behave and leading to an erosion of trust. 

Nearly all respondents (96%) say their behaviour changed after being scammed, with many saying they avoid certain types of transactions or channels as a result.  

This has far-reaching consequences for trust in the wider financial ecosystem and is reflected in another important finding – that 31% of all victims report losing trust in people or companies.

Many individuals are proactively taking steps to protect themselves and their personal information, but gaps persist. 

Respondents report using strong passwords for every account (43%) and taking advantage of two factor or multi-factor authentication (43%), while others say they only use established brands they trust (42%). 

Many also believe that they are educated about how to protect themselves from financial scams – 23% believe they are very well educated and 52% say they are somewhat educated – but this still leaves a fair number who believe that they are poorly educated, or not educated at all. 

This lack of knowledge extends to understanding available protections and reimbursements, with just 15% saying they are aware of the protections available to them. 

More must be done in terms of education and raising awareness, and broad-based, sustained collaboration is needed to strike back against surging fraud across APAC – and across the globe.

Addressing these gaps will require sustained education and collaboration across the financial ecosystem. Strengthening consumer confidence and protecting trust must remain a shared priority as fraud continues to evolve across APAC and globally.