An Associated Press investigation has found that scams in the United States are at a record high, yet most victims receive no help from authorities, and some end up losing even more money attempting to recover their losses. The findings paint a stark picture of a system that is failing consumers, with several cases originating in New York state.
The AP investigation, published this week, documented multiple cases of Americans who lost hundreds of thousands of dollars to online scammers. One victim identified as Simon, a resident of southeastern New York, had $800,000 stolen from his retirement savings by a scammer. He asked not to be identified by his full name because he was too ashamed to tell most of his family about the crime, AP News reports.
Another New Yorker, Brian Glick of Ballston Lake, near Albany, is fighting to recover $575,000 stolen by an online scammer. Glick has channeled his experience into a podcast and group calls with other scam victims, creating a support network for people who have found little help from official channels. The AP documented his case as part of a broader examination of how the U.S. government and financial institutions respond to scam reports.
The investigation found that the system for helping scam victims is fragmented and often ineffective. Banks and wire transfer services are not consistently required to flag suspicious transfers or to reimburse victims. Law enforcement agencies often lack the resources or jurisdiction to pursue international scam operations, particularly those based in Southeast Asia or West Africa. And recovery services that claim to help victims get their money back sometimes charge additional fees without delivering results, leaving victims worse off than before.
For New York, the findings are particularly concerning. The state’s large population, high concentration of wealth, and status as a financial hub make it an attractive target for scammers. New York’s financial regulators have taken steps to combat fraud, including requiring banks to adopt stronger authentication protocols and increasing scrutiny of cryptocurrency exchanges that are often used to launder stolen funds. However, the AP investigation suggests these measures are not keeping pace with the evolving tactics of criminal networks.
The rise of artificial intelligence has made scams more sophisticated and harder to detect. AI-powered tools can generate convincing fake voices, create realistic phishing emails, and automate social engineering attacks at scale. The AP noted that AI is being used to clone voices and create deepfake videos that can fool even careful consumers, as AP News documents.
The financial impact extends beyond individual victims. When retirement savings are drained, the effects ripple through local economies. Victims may reduce spending, delay retirement, or require public assistance. The psychological toll is also significant: many victims report feelings of shame, isolation, and depression that can affect their ability to work and participate in their communities.
The AP investigation suggests that the U.S. needs a more coordinated approach to combating scams, including stronger requirements for banks to detect and prevent fraudulent transfers, better funding for law enforcement, and more robust support systems for victims. For New York’s policymakers and financial institutions, the findings offer a clear call to action: in a state that prides itself on being the financial capital of the world, the failure to protect residents from financial fraud represents a gap that must be addressed.
