PHOENIX, Ariz. – Financial fraud is quietly draining Arizona households, costing families billions each year. A new report from the Common Sense Institute (CSI), The Impact of Financial Fraud in Arizona, projects that in 2025 alone, Arizonans will lose more than $4.0 billion to scams, identity theft, and other fraudulent activity.
In 2024, Arizonans reported 54,912 fraud cases with losses totaling $521 million—a 384% increase since 2020. On average, that amounted to $69 per resident and $182 per household, the equivalent of a 4–8% increase in annual state income tax liability.
The Impact of Financial Fraud on Arizonans:
- The average loss per incident in Arizona was $6,270, nearly 30% more than the national average.
- Arizona ranked 11th highest in the nation for fraud rate, with 1,459 cases per 100,000 residents.
- Older Arizonans bear the greatest burden. Residents 70 and older face the largest average losses and adults 60+ account for 66% of internet-based fraud losses.
- Everyday costs rising: For every $1 lost to fraud, Arizonans lose $1.06 in personal income. Families also face 0.12% higher prices on goods and services because of fraud’s ripple effects.
- Fewer job opportunities: Fraud drains demand and investment, contributing to the loss of more than 45,000 Arizona jobs.
“Arizona is projected to lose over $4 billion to financial fraud in 2025. That’s nearly 1% of the state’s total GDP,” said Zachary Milne, Senior Economist and Research Analyst at CSI. “Fraud is a systemic drain on Arizona’s families and the economy. Eliminating these losses would mean billions in growth, tens of thousands more job opportunities, and lower prices for Arizonans. Financial fraud must be understood for what it is—a growing economic threat to Arizonans and the State’s long-term prosperity.”
