Skip to main content
Fraudvictimmmm hero
• Feb 27, 2023

There are millions of victims of financial fraud every year – and the problem is getting worse. Yet, because financial fraud normally occurs out of public view, many victims feel isolated and ashamed. The United States Department of Justice estimates that only 15% of victims of financial fraud report the crime because they are embarrassed, feel guilty or think nothing can be done.

It’s typical for victims of financial fraud to experience all these emotions according to Dr. Traci Williams, a board-certified psychologist and certified financial therapist. She adds that victims may also feel angry, violated, anxious, shocked, sad, and hopeless. Moreover, even a small loss can have a profound impact on victims.

“How [financial fraud] impacts you isn’t necessarily tied to how much money is lost,” explains Dr. Williams. Many victims of financial fraud are “tech savvy and very intelligent” so no one is immune.

Karen St. Esprit and her grandchildren

That's true of Karen St. Esprit, a business owner in Pittsburgh whose checking and savings accounts were depleted after someone called claiming to be from her bank. The caller knew details about her financial history, including when she first opened her account, and even played the bank’s signature hold music.

“I felt like someone invaded my privacy,” she says, “How could they possibly have gotten into my [accounts]? I am very computer savvy. I am cautious about passwords and websites…I am embarrassed and hurt that I fell for this.” Karen had a hard time sleeping and didn’t initially share what happened with friends and family.

Although most financial fraud victims feel a range of emotions, the length and intensity of these feelings can vary widely. Some victims of financial fraud are upset for a few days and move on while others may develop full-fledged Post Traumatic Stress Disorder (PTSD). Some victims may have an uncomfortable relationship with money for years after experiencing financial fraud.

Dr. Williams says some victims ignore anything having to do with finances to the point that they can’t bring themselves to pay routine bills. Other save obsessively in case they are victimized again or go on spending sprees using the logic that they might as well enjoy themselves before someone steals from them again.

Dr. Traci Williams, photo credit: Lyndsey Hobby Photography

No matter how a victim of financial fraud reacts, Dr. Williams suggests the following steps to help people recover and repair their relationship with money.

Be empathetic to yourself: Victims should remind themselves that it's not their fault they were taken advantage of and that they “don’t have control over what criminals do," according to Dr. Williams. She adds that “scammers will probably always be around,” noting that many who commit financial fraud are “charismatic” and skilled at parting victims from their money.

Remind yourself you are not alone: Because victims of financial fraud are reluctant to talk about the crime, it's easy for victims to feel alone. Dr. Williams thinks victims should remind themselves that financial fraud is “significantly underreported” and that they aren't alone. This can help assuage feelings of guilt.

Monitor Accounts: It’s common for victims of financial fraud to lose trust in financial institutions – and themselves. Dr. Williams recommends that victims monitor their accounts regularly for suspicious activity to help rebuild confidence that their finances are secure. Regular monitoring can also ensure swift action if something is amiss, which helps many victims feel in control. However, Dr. Williams cautions that monitoring should not be “obsessive.” Checking accounts multiple times a day is not healthy but checking on finances a couple of times a week can be reassuring and provide a sense of security. Over time, this can help victims regain trust in financial institutions and themselves.

Implement layers of protection: For some victims of financial fraud, adding layers of protection can be reassuring. One step Dr. Williams recommends is putting a credit freeze into effect. This prevents others from opening new accounts in someone’s name without their knowledge. Dr. Williams also advises using two-factor authentication wherever possible. That way, if someone tries to break into an account, they will have to go through multiple sites to gain access, and there is a greater chance a potential victim will be alerted to the attempt before any harm is done.

Learn about techniques to protect yourself: According to Dr. Williams, it's empowering to learn about common scams and how to guard against them. For example, Dr. Williams says that consumers can contact their bank and credit card provider and ask how they communicate suspicious activity. Dr. Williams suggests that if someone reaches out purporting to be a from a financial institution, don’t take the call, respond to a text, or follow a link in an email. Instead, ignore whatever instructions they give for replying and call the financial intuition’s publicly listed number directly. Ask whether they attempted to contact you and if they didn’t, report the incident to the financial intuition’s fraud department. Because criminals can easily make an incoming call or text look like it’s coming from your bank, don’t trust the number that shows up on your screen or hit redial. Learning about other common schemes, and staying abreast of new ones, can help victims of financial fraud regain a sense of control over their finances.

Seek out additional support: It’s perfectly normal for it to take time for victims of financial fraud to recover emotionally, as well as financially. However, some victims experience prolonged distress and have more significant reactions than others. Dr. Williams says it’s time to seek out professional help if feeling of anger, sadness, or guilt last longer than two weeks. She also recommends that victims find help if dealing with the aftermath of financial fraud is impacting their quality of life to the point that they are having trouble sleeping, have thoughts of hurting themselves or someone else, experience anxiety whenever they think about finances, or otherwise experience distress that interferes with their ability to function normally. Financial therapists who are trained to help victims of financial fraud may be particularly helpful. Support groups can also help those who feel isolated or do not want to talk about what happened with friends or family feel less alone, according to Dr. Williams.

For More on Personal Finance Topics

If you have more questions about other personal finance topics that matter to you, visit the Learning Center on TD Bank’s website

We hope you found this helpful. This article is based on information available in February 2023 and is subject to change. It is provided as a convenience and for general information purposes only. Our content is not intended to provide legal, tax, investment, or financial advice or to indicate that a particular TD Bank or third-party product or service is available or right for you.

For specific advice about your unique circumstances, consider talking with a qualified professional.

Links to third-party sites do not constitute an endorsement or an approval by TD Bank of any of the products, services or opinions of the corporation or organization or individual. TD Bank bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links. Any third-party trademarks or service marks mentioned herein are the property of their respective owners. Contact the external site for answers to questions regarding its content. See our website Terms of Use for more information.

Want to learn more about Money matters?
Your End-of-Year Wealth and Investment Planning Checklist
Holiday Shopping Tips - Here's How to Keep Spending In Check
Conscious Consumerism is In

Join our newsletter

Sign up for the latest updates from TD Stories delivered to your inbox twice a week.

See you in a bit

You are now leaving our website and entering a third-party website over which we have no control.

Continue to site Return to TD Stories

Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of the third-party sites hyperlinked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third party sites.

Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.