For Credit Unions, New Fraud Warning Is Clear: The Attacks May Be Fewer, But They’re Hitting Harder

CHICAGO— Even as suspected digital fraud attempts are falling, U.S. consumers are still losing meaningful amounts of money—and a new TransUnion analysis suggests the reason may be that criminals are getting smarter, not weaker, as AI helps push scams higher up the value chain.

The company’s H1 2026 fraud update found one in six U.S. consumers said they lost money to digital fraud over the past year, with a median loss of $2,307, while stolen credit card/fraudulent-charge schemes, identity theft and account takeovers were among the biggest drivers of losses.

For credit unions and other financial institutions, the warning is that fewer flagged attacks may not mean lower fraud risk. TransUnion said suspected digital fraud tied to attempted transactions involving U.S. consumers declined in 2025, including in financial services, but argued that fraudsters are increasingly using more sophisticated, AI-assisted tactics—especially at account opening—that are designed to evade older rules-based defenses and generate bigger payoffs once they get through.

Globally, 26% of consumers across 18 surveyed countries and regions said they lost money to digital fraud last year, with a median loss of $1,671. In contrast, U.S. data reveals a notable difference: Americans were disproportionately affected by stolen credit card and fraudulent charge schemes. One‑third of U.S. consumers who lost money to digital fraud cited these attacks as the cause—the highest‑reported category in the country and significantly higher than the global rate of 19%. 

“Criminals are weaponizing both consumer trust and emerging technologies,” said Naureen Ali, U.S. head of fraud at TransUnion. “As GenAI accelerates the sophistication and scale of criminal operations, the threat landscape is evolving faster than ever for U.S. consumers and businesses. Addressing this requires a new generation of identity‑centric defenses that combine advanced analytics, adaptive authentication and multilayered fraud detection. Organizations must match fraudsters’ technological innovation to stay ahead of rapidly changing schemes.” 

Stolen credit card information—compromised through phishing, website skimming, account takeover or other criminal methods—remains the leading driver of U.S. consumer fraud losses. Consumers also cited elevated rates of identity theft (29%), account takeover (27%) and third-party seller scams on legitimate ecommerce sites (24%) among the leading causes of financial loss. While these patterns largely reflect global fraud trends, their impact is more pronounced in the U.S., given the country’s high volume of digital transactions, TransUnion said. 

Stolen Cards Or Fraudulent Charges Nearly Double U.S. Fraud Loss Vs. Global

Percentage reporting losing money to these schemes among consumers who said they lost funds from digital fraud in the last year

Source: TransUnion consumer survey

Globally, Gen Z consumers were the most likely to report financial losses, with 39% saying they lost money to digital fraud in the past year. U.S. Gen Z consumers showed a similar pattern, with 38% reporting losses—the highest rate among U.S. generations.

"This elevated exposure may be influenced by Gen Z’s frequent use of gaming platforms, cryptocurrency exchanges and social apps, which are commonly targeted by fraudsters," TransUnion said. 

Suspected Digital Fraud Rates Decline In The U.S., But Risk Persists Across Key Sectors

Even as suspected digital fraud declined, consumer losses rose. The suspected digital fraud rate for attempted transactions involving U.S. consumers declined among TransUnion’s business customers, a trend also seen globally. "

Nevertheless, this decrease does not necessarily indicate reduced criminal activity; rather, it may reflect a shift toward tactics designed to maximize ROI through the use of AI," TransUnion said.

During account creation, 8.3% of attempted transactions globally in 2025 were suspected to be digital fraud, representing an 18% increase year over year.

“Fraudsters are moving upstream,” Ali said. “Instead of bypassing controls during account use, they increasingly exploit vulnerabilities at account creation, concealing identity manipulation until losses mount. These methods enable criminals to evade rules‑based systems built for a different threat environment. To keep pace, businesses need intelligence‑driven, proactive solutions like TransUnion Fraud Solutions to detect sophisticated identity risks at onboarding.” 

Industries Facing The Highest Digital Fraud Risk In The U.S. 

TransUnion’s industry analysis shows that sectors centered on consumer interaction, social connection and entertainment faced the highest digital fraud pressure in 2025 for attempted transactions involving U.S. consumers. 

While many U.S. industries saw a year-over-year decline in fraud volume, risk remains elevated in several areas. The communities sector, including online dating and forums, experienced a 7% increase in suspected digital fraud attempts, underscoring rising exposure in trust-based environments. Gaming also continues to face significant risk, with nearly one in 10 U.S. transactions flagged as suspected digital fraud. 

Despite A Broader Decline, Communities Have Seen An Uptick In Scams Over The Last Year

Source: TransUnion global intelligence network

“As criminals increasingly weaponize new technologies to carry out sophisticated scams, it’s more important than ever for consumers to safeguard their personal information,” said Margaret Poe, head of consumer credit education at TransUnion. “Regularly reviewing credit reports is a foundational step, and those who believe they’ve been targeted or victimized by fraud should also consider placing a freeze on their credit files with the major credit bureaus.”