Articles & Resources

The Cost of Financial Fraud in Iowa

(Reprinted with permission from the Iowa Bankers Association)      

 CSI Report Highlights Rising Fraud Losses              

This week, the Common Sense Institute (CSI) released “The Impact of Financial Fraud in Iowa” report, which studies the impact of financial fraud on Iowa’s economy. According to the CSI report, the projected losses from financial fraud in 2025 include an estimated $93 million in direct, reported losses and an estimated $93 million to $573 million in direct, unreported losses.    

“In 2024, almost 14,000 Iowans were impacted by financial fraud — nearly enough to fill the Iowa State Fair Grandstand,” said Adam Gregg, IBA president and CEO. “The projected 2025 fraud losses of up to $666 million would be enough to buy every Iowan a front row ticket to a    fair concert.”

The CSI report also highlights key findings on the impact of financial fraud:

- The average loss per fraud case in Iowa was highest for ages 60-69 at $4,880, followed by $3,924 for ages 50-59 and $3,032 for ages 40-49.

- Imposter scams, which include grandparent scams and fake distress scams, were the most common scams in Iowa with 4,415 reported cases in 2024, followed by identity fraud at 2,877 and ATM fraud at 2,524.

- According to the Federal Trade Commission, the total financial loss from fraud was $52 million statewide in 2024, up 204% since 2020.

While this report highlights fraud as a growing problem, the IBA is committed to helping Iowa banks protect their customers and communities from financial fraud. “In partnership with our member banks, we are making an impact by working to reduce the amount of financial fraud in the state through education, research and anti-fraud resources,” said Gregg.

Thanks to mitigation efforts, Iowa ranks among the better states for managing fraud, ranking third lowest for fraud incidents and sixth lowest for identity theft, and 16th for total cyber-enabled crime losses, 10th for incidents per 100,000 residents, 15th for complaints filed by individuals 60 and older, and 10th for cryptocurrency losses.

With fraud losses continuing to rise and scams becoming increasingly sophisticated, it’s more important than ever for banks to stay proactive in fraud prevention, and the IBA Fraud Resouces guide offers tools and materials to support these efforts. The IBA thanks our member banks for their dedication and ongoing efforts to educate    communities and customers about fraud.

Read the full CSI report:

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Is It a Scam?

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Scams can happen to anyone. Scammers are good at what they do. Learn how to protect your money and information from scammers.

‍What do scammers want?

Scammers are dishonest people. Some lie to convince you to send them money.

Other scammers want your information. They try to get information like the username and password for your bank account, your credit card number or Social Security number.

What are the signs of a scam?

• Scammers tell many different stories to try to get your money or information.

• Scammers contact YOU and say there’s a problem. They might pretend someone in your family had an emergency. They could say there’s a virus on your computer.

• Scammers tell you to hurry. They don’t want you to have time to think or to check out their story.

• Scammers tell you to pay, and they tell you HOW to pay. Scammers often say you can only pay by: buying a gift card and giving them the numbers on the back

• Sending money through UPS or USPS.

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Learn more at:

https://consumer.ftc.gov/scams

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If You Were Scammed!

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Here’s what to do if you think you sent money to a scammer or gave a scammer your personal information. The quicker you act the better.

If I sent money to a scammer, what should I do? Scammers can be very convincing. They call, email, and text you trying to get money or personal information — like your Social Security or account numbers. And they're good at what they do. If you paid or sent money to someone you think is a scammer, you might not get it back.

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It’s always worth asking the company you used to send the money if there’s a way to get it back. Try to cancel or reverse the transaction as soon as you can.

1. Contact whoever you used to send money, for example: your credit card company or bank, UPS or USPS.

2. Tell them it was a scam

3. Ask them if they can help you get your money back. If you gave cash or gold to someone, call the police.

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How do I report a scammer?

Contact the Federal Trade Commission: Go online at ReportFraud.ftc.gov.

Call 1-877-382-4357.

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Help Your Kids Be Scam Savvy

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The “Money Cents” series is a monthly initiative designed to educate and empower consumers to protect themselves from financial fraud. The “Money Cents” campaign from the Iowa Bankers Association shares resources on their website and social media.

Protecting Iowans from Crypto Scams

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What You Need to Know About the New Law

As of July 1, 2025, a new Iowa law is in effect to help protect residents from scams involving cryptocurrency ATMs. Spearheaded by Iowa Attorney General, Brenna Bird, this legislation is a major step forward in consumer protection, especially as digital currencies become more common.

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Why This Law Matters

Cryptocurrency ATMs—machines that allow users to buy digital currencies like Bitcoin using cash or cards—have increasingly been exploited by scammers. These scams often involve misleading and manipulating individuals into depositing money into crypto ATMs under false pretenses, which can result in significant financial losses.

Recognizing the growing threat, the Iowa Legislature passed a new state law, which introduces several key protections:

• Refunds for Scam Victims: New users of a crypto ATM operator can receive a full refund if they report a fraudulent transaction within 90 days.
• Transaction Limits: Daily transactions are capped at $1,000, with a $10,000 limit over the first 30 days of use with particular operator.
• Fee Restrictions: Operators cannot charge more than $5 or 15% of the transaction value - whichever is greater.
• Enhanced Warnings: ATMs must now display clearer scam warnings and disclosures.
• Improved Customer Service: Operators are required to implement better scam prevention procedures and report more detailed information to consumer protection agencies.

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What You Can Do

If you or someone you know has been affected by a cryptocurrency ATM scam, help is available:

• Report the Scam: Contact the Iowa Attorney General’s office at 1-888-777-4590 or email cryptoscam@ag.iowa.gov.
• File a Complaint Online: Visit the Consumer Protection Division’s complaint portal.
• Learn More: Read the full Crypto ATM Law FAQ to understand your rights and how to seek a refund 

Learn More About the Latest Scams and Fraud Warnings

The American Bankers Association and the U.S. Postal Inspection Service today announced a new joint effort to combat the rapid rise in check fraud, which has increased nationwide by 385% since the pandemic, according to the U.S. Treasury Department. Check fraud schemes commonly target the U.S. mail to steal checks, alter or wash them to change the payee and dollar amount, and ultimately steal money from victims’ accounts. Learn More!

Avoiding Real Estate Fraud - Best Practices

With the recent increase in real estate fraud, in central Iowa, it is important that realtors help protect customers from falling victim to a real estate scam. Learn more about best practices for real estate transactions.

Other Useful Resources

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Student Loan Options for Your College Student

South Story Bank & Trust has partnered with ISL Education Lending to help customers with college expenses. Through this partnership, we are able to offer three types of loans for college financing. There are no origination or late fees associated with any of these loans.

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