Financial fraud costs Americans billions annually. As technology advances, so do scammers' tactics. Understanding common schemes and protection strategies helps safeguard your hard-earned money.

Common Financial Scams

Phishing Attacks

Scammers pose as legitimate institutions (banks, IRS, tech companies) via email, text, or phone to steal login credentials or personal information. The Federal Trade Commission reports phishing as the most common fraud type.

Warning signs:

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  • Urgent language demanding immediate action
  • Generic greetings ("Dear Customer")
  • Suspicious email addresses or links
  • Requests for passwords or Social Security numbers

Investment Scams

From Ponzi schemes to fake cryptocurrency offerings, investment fraud promises unrealistic returns. According to the SEC, red flags include:

  • Guaranteed high returns with no risk
  • Pressure to invest immediately
  • Unregistered investments or sellers
  • Complex strategies you can't understand
  • Difficulty withdrawing funds

Identity Theft

Criminals use stolen personal information to open accounts, file taxes, or make purchases in your name. Consequences can take years to fully resolve.

Romance Scams

Scammers build fake online relationships, eventually requesting money for emergencies, travel, or business opportunities. These cause both financial and emotional harm.

Tech Support Scams

Fraudsters claim your computer has problems, gaining remote access or selling unnecessary "protection." Legitimate companies don't call about computer issues unsolicited.

Protective Measures

Guard Personal Information

  • Never share passwords, PINs, or Social Security numbers via email or phone
  • Use unique, strong passwords for each account
  • Enable two-factor authentication wherever possible
  • Shred documents containing personal information
  • Be cautious about social media sharing

Verify Before Acting

  • Contact companies directly using official numbers (not those provided in suspicious messages)
  • Research unfamiliar companies before doing business
  • Check investment professionals at FINRA BrokerCheck
  • Be skeptical of unsolicited contacts

Secure Your Devices

  • Keep software and operating systems updated
  • Use reputable antivirus software
  • Avoid public Wi-Fi for financial transactions
  • Recognize secure websites (HTTPS, padlock icon)

Monitor Your Accounts

  • Review bank and credit card statements regularly
  • Check credit reports at AnnualCreditReport.com
  • Set up account alerts for transactions
  • Consider credit monitoring services or freezes

If You've Been Scammed

Act quickly:

  1. Stop all contact with the scammer
  2. Document everything—save emails, texts, screenshots
  3. Report the fraud:
    • FTC at ReportFraud.ftc.gov
    • Your state attorney general
    • Local police for significant losses
    • FBI Internet Crime Complaint Center for online fraud
  4. Contact financial institutions to freeze accounts and dispute charges
  5. Place fraud alerts on credit reports
  6. Change passwords on all accounts

Protecting Vulnerable Family Members

Elderly family members are frequent targets. Help protect them by:

  • Discussing common scams openly
  • Encouraging them to verify before acting
  • Setting up account alerts you can monitor
  • Establishing a "check with me first" policy for large transactions
  • Registering on the Do Not Call list

Financial security involves protecting what you've built. Like maintaining your emergency fund and credit score, fraud prevention requires ongoing vigilance. Stay informed, stay skeptical, and protect your financial future.