After the scam: The emotional and financial impact of global fraud

Financial fraud is inflicting a deep and lasting emotional toll on consumers worldwide, with anger, anxiety and shame emerging as the most common responses among victims, according to new research from LSEG Risk Intelligence.

The global study and report, After the scam: The emotional and financial impact of global fraud, surveyed more than 21,000 adults across 14 countries and found that the impact of scams extends far beyond financial loss. It fundamentally alters how people feel, behave and trust others.

David Wilson, Group Head at LSEG Risk Intelligence, comments:
“Every transaction has a story - and too often, that story is one of anger, anxiety or shame. Our research shows that fraud leaves a lasting emotional impact that changes how people behave and whom they trust.

“The emotional damage caused by scams creates a wider trust deficit. When people no longer feel confident engaging digitally, the effects ripple across the financial system and the wider economy.

“Tackling fraud effectively means understanding its human impact. Raising awareness, improving education and clearly communicating available protections are essential not just to reduce losses, but to help rebuild confidence and trust.”

Among those who have been targeted by a financial scam, more than half (52%) report feelings of anger or frustration, making it the most common emotional response. 34% experienced anxiety or fear around money, while 32% reported embarrassment or shame, and feelings of helplessness or loss of control.

Respondents also reported guilt (28%), feelings of helplessness or loss of control (28%), and stress or sleep difficulties (25%), underlining the psychological toll scams can take on victims.

Emotional harm accompanies widespread exposure
The findings come as scam exposure becomes increasingly common. More than half of adults globally (54%) say they have either been personally targeted by a scam or know someone who has, reinforcing the fact that fraud is now becoming increasingly common.

Direct victimisation remains significant. 26% of adults say they have personally been targeted by a scam in the past two years, and among those targeted, 20% say they lost money as a result. Overall, 11% of all adults globally report having lost money to a financial scam in that same period.

The research also highlights gender and generational differences in emotional impact. Women are far more likely than men to experience anxiety or fear after being scammed, with 40% reporting financial anxiety compared with 29% of men. Feelings of embarrassment and shame are particularly acute among older victims, affecting 39% of Baby Boomers compared to 32% of all victims.

Scams change behaviour and erode trust
The emotional effects of fraud translate directly into behavioural change. Nearly all scam victims (97%) say the experience changed how they behave, with many becoming more cautious about online payments, more reluctant to share personal information, and more suspicious of digital communications.

Following a scam:

• 46% say they are now more cautious when making online payments
• 41% are more careful about where and how they share financial details
• 37% double-check the legitimacy of companies more often
• 29% say they have lost trust in people or companies

Confidence masks vulnerability
Despite the scale of emotional harm, many consumers believe they are well prepared to protect themselves. 78% of adults globally say they feel educated about how to spot and avoid scams, with a quarter of those believing they are very well educated.

However, this confidence contrasts sharply with awareness of support after a scam occurs. Only 13% of adults say they are fully aware of the protections, reimbursements or support available if they are scammed, while 28% say they are not aware of any protections at all.

This gap suggests many victims may be left dealing with the emotional fallout of fraud without clear knowledge of where to turn for help.

A growing need to address the human cost of fraud
The findings highlight the need for a broader response to financial crime - one that recognises and addresses its psychological as well as financial consequences.

The full report is available here.