Americans are dealing with a growing wave of digital scams, and many are losing money in the process. According to the fourth annual Consumer Cyber Readiness Report, nearly half of U.S. adults have been targeted by cyberattacks or scams, and one in ten lost money as a result.
Text scams are on the rise
The survey found that text and messaging apps have become a growing source of scams. Three in ten people who experienced a cyberattack or scam said it began with a text message or a messaging app like WhatsApp or iMessage. That is up sharply from 20 percent last year.
Younger adults are especially affected. The report found a 27-point increase in text scams among those aged 18 to 29.
“Gen Z is falling victim to record levels of text scams due to three colliding trends,” said Jason Dorsey, president of The Center for Generational Kinetics. “First, texting is their primary communication channel, with hundreds of daily messages creating a perfect opening for scammers. Second, they tend to be in large group messaging threads with unknown contacts, making it easy to mistake a scammer’s number for a friend’s number. Third, they have less experience spotting scams but instant access to money on their phones, reducing friction for scams to succeed.”
Racial disparities in scam losses
The report highlights a troubling pattern of unequal outcomes. Black Americans who encountered a scam were more than twice as likely as white Americans to report losing money. Among those who faced a scam attempt, 37 percent of Black Americans said they lost money compared with 15 percent of white Americans.
Representative Yvette D. Clarke, chair of the Congressional Black Caucus, addressed this gap in the report. “The continued reality that Black Americans lose money to digital scams at more than twice the rate of white Americans is unacceptable—and it’s not improving,” Clarke said. “These disparities reflect systemic inequities in financial protections, targeted scam tactics, and access to digital safeguards. Every person—regardless of race, income, or ZIP code—deserves to be safe, empowered, and secure in our digital world.”
Passkeys gain traction
The survey found that 33 percent of Americans who use multifactor authentication have started using passkeys. This level of adoption is notable given that passkeys were introduced only three years ago.
While passkeys offer stronger protection, early adopters are facing some challenges. Differences in how companies roll out passkey support across devices and services can cause confusion. For example, a passkey created on one platform might not work on another if the systems are not integrated. The report recommends using an independent password manager like Bitwarden, 1Password, or LastPass to store and manage passkeys until compatibility improves.
Confidence in privacy is falling
Even as people take more steps to protect themselves, fewer Americans believe their personal data is private. This year, only 48 percent of respondents said they are confident their data is not being distributed without their knowledge, down from 53 percent last year.
While adoption of new tools like passkeys is encouraging, the report suggests there is still a long way to go before consumers feel secure in their digital lives.
