As we head into the busiest shopping season of the year, Block is doubling down on our commitment to consumer safety. This week, we launched two major initiatives that underscore our mission to make the digital economy safer for everyone, combining new research with actionable education to help millions of people protect themselves from fraud.
On Wednesday, , commissioned by Block, which challenges conventional wisdom regarding scams. Notably, younger, college-educated, digital-first consumers face the highest risk. Some 24% of millennials and 22% of Gen Z report being scammed, compared to just 14% of baby boomers and seniors. Why? Because younger consumers spend more time online and on social media, where 24% of Gen Z first encounter fraudsters.
The impact is devastating, both financially and emotionally. Nearly four in 10 U.S. households have fallen victim to scams in the past five years, with Americans losing billions of dollars annually to fraudsters. But the damage extends far beyond financial pain. Over half of those surveyed withdraw from online life, reducing their online shopping and social activity. The emotional toll is real. People lose trust, become more guarded, and many curtail their digital banking activities at a time when they need financial services most.
The speed at which scammers operate is alarming: more than two-thirds of consumers authorize payments within 24 hours of first contact, and nearly one in four send money within the first 30 minutes. This urgency is by design, as scammers create high-pressure situations that don't give people time to think.
Perhaps most concerning is how scammers exploit trust. In 81% of successful scams, criminals posed as trusted authorities (banks, government agencies, well-known companies), friendly strangers, or even personal contacts. With AI-generated voices and deepfakes becoming more sophisticated, these impersonation tactics are only getting more convincing.
Our research reveals a critical insight for both consumers and financial institutions: reporting works. People who report scams to their banks recover most or all of their funds 53% of the time, compared to just 12% who don't report at all. Customers who recover their money feel they can trust their banks more, from 70% among those who recovered nothing to 90% among those who got most or all of their funds back.
Yet nearly one-quarter of those impacted never report scams to their financial institutions. The survey found that one-quarter didn't even know they could. This knowledge gap represents a massive opportunity to educate customers and strengthen relationships at a critical moment.
This week, Block , to launch "," a national consumer education campaign to arm consumers with three essential strategies:
Keep Your Guard Up – Use strong passwords, enable two-factor authentication, and never share one-time codes or sign-in links.
Pause Before You Pay – Verify messages through official apps and websites, and be skeptical of unexpected requests, even from familiar names.
Pay it Safe – Send money only to people or businesses you know and trust, monitor your accounts regularly, and report suspicious activity immediately through your banking platform.
As Brian Boates, Block's Chief Risk Officer, explains: “Scammers are getting more sophisticated, using AI-generated voices and social media tactics to target people during the busy holiday season. That's why we've built smart defenses that work behind the scenes: real-time machine learning that helps spot potential scam activity, in-app alerts that give customers a chance to pause before sending money, and an industry-leading reimbursement program. Through our technology-first approach, we're constantly improving our detection systems to stop bad actors while helping make sure legitimate payments go through smoothly. But technology alone isn't enough. With the Smarter Than Scams campaign, we're giving people the tools and knowledge they need to recognize scams and protect themselves this holiday season and beyond."
This week's initiatives reflect Block's holistic approach to consumer protection, combining cutting-edge technology with education and accessible reporting channels. As AI makes impersonation exponentially more convincing and scammers continue to evolve their tactics, we're committed to staying one step ahead.
The holiday season should be about connection and celebration, not falling victim to fraud. By empowering consumers with knowledge and protecting them with technology, we're helping build a digital economy where everyone can participate safely and confidently. Because when it comes to fighting scams, we're all in this together.