How to Avoid Becoming a Victim of Modern Financial Scams
/By Shelley Murasko
Today’s consumers are facing increasingly sophisticated financial scams that can be difficult to recognize in real time. We continue to see a troubling rise in financial fraud affecting individuals of all ages, with criminals using increasingly advanced tactics designed to create urgency, exploit trust, and bypass careful decision-making.
Unfortunately, we’ve seen the impact firsthand. Two clients recently lost substantial sums of money, while others narrowly avoided financial harm because suspicious activity was identified in time.
Romance Scams and Gift Card Fraud
In the first case, a senior client became the victim of an online romantic scam that began through a dating app. The individual she connected with eventually asked to “borrow” money in the form of gift cards.
After the client discovered the deception, the scam continued. Individuals posing as attorneys contacted her, claiming they could help recover the stolen funds if she first paid thousands of dollars in legal fees. As a result, the scammers were able to exploit her twice: first through the fraudulent relationship and then through the false promise of financial recovery.
After contacting the FBI, the Federal Trade Commission, and elder abuse resources several months ago, it became clear that she would not recoup her losses. Unfortunately, these types of cases can be difficult to resolve once a victim voluntarily transfers money, even when the transfer was made under false pretenses.
“Guaranteed Returns” Can Be a Red Flag
In another case, a 60-year-old client gave money to a “trusted contact” who claimed to have access to a high-return real estate investment opportunity. The investment company promised a guaranteed 12% return with additional upside potential.
A few months after the money was supposedly invested, the client realized there would be no return on the investment and no recovery of the $200,000 transferred into the fraudulent scheme.
Financial Fraud Is Growing Rapidly
Recent industry data underscores the scale of the problem. The Federal Trade Commission reported $12.5 billion in fraud losses in 2024, a 25% increase from the previous year. Broader estimates that include underreported cases suggest total annual fraud losses in the United Stated may range from $31 billion up to nearly $196 billion.
Scam activity is widespread, with surveys indicating that 10% to 20% of Americans are affected by fraud each year, often resulting in direct financial losses. Roughly 73% of U.S. adults report experiencing some form of scam or fraud attempt during their lifetime, highlighting how common these incidents have become.1
Losses are also increasing in scale and severity. Investment scams alone account for over $5 billion in annual losses. Imposter scams - including fake banks, financial advisors, and government agencies - are among the most reported categories of fraud.
Fraud Affects Every Generation
Financial fraud is not limited to older adults. While seniors may experience larger average losses, younger and middle-aged adults are frequently targeted through online shopping scams, job scams, rental fraud, and investment schemes.
In a recent case involving a younger client, scammers posing as her landlord offered one month of free rent if she prepaid six months of rent. The scammers sent messages using the property’s letterhead that mimicked other legitimate documents received from the property manager.
Fortunately, the client noticed that the bank routing information differed from previous payment instructions and contacted the landlord directly, where she learned the property management system had been hacked.
Today’s Scammers Are More Sophisticated Than Ever
Modern fraud operations are highly organized, global, and technology enabled. Criminal networks increasingly use AI-generated messages, voice cloning, spoofed caller IDs, and professional-looking websites to appear legitimate.
Many scams are “long cons” that gradually build trust before requesting large transfers of money. Others rely on urgency, threats, deadlines, or emotional manipulation to pressure victims to act quickly. These tactics are specifically designed to override careful thinking and trigger emotional responses.
Research also shows that middle-aged adults report fraud at the highest frequency. Investment scam victims tend to be financially knowledgeable, higher-income individuals with available assets to invest. In other words, circumstance and sophistication rather than age alone drive vulnerability.
Practical Steps to Protect Yourself
Given today’s environment, we strongly encourage the following safeguards:
· Be highly vigilant with all unsolicited emails, texts, phone calls, and social media messages.
· Do not respond directly to unexpected communications, especially those requesting money, personal information, or urgent action.
· Carefully review email addresses, phone numbers, and message wording for inconsistencies, poor grammar, or unusual requests.
· Never rely on contact information or links provided within the message itself. Instead, verify independently using a known phone number or official website.
· Resist pressure to act immediately. Scammers frequently create urgency to prevent careful review and thoughtful decision-making.
· Be cautious of any investment promising “guaranteed” returns of 10% or higher, as this is a common fraud indicator.
· When in doubt, consult a trusted family member, friend, or advisor before sending money or sharing sensitive information.
· Even when messages appear to come from a bank, advisor, landlord, or government agency, independently confirm the request before acting.
· If anything feels unusual, contact us before responding to suspicious communications or moving funds. A quick conversation may help prevent irreversible losses.
· Please understand that additional verification procedures for large money transfers are designed to help protect you from fraud and financial exploitation.
· When in doubt, pause and ask.
Modern fraud is no longer simply opportunistic. It has evolved into a global, data-driven industry generating tens to potentially hundreds of billions of dollars in annual losses. Even experienced, financially literate individuals can be successfully targeted. A healthy level of skepticism and a disciplined verification process remain two of the strongest defenses available.
As always, please contact us if anything seems questionable before acting.
Source:
1. “Here’s Why You Are Constantly Fighting Off Scammers” by Stephen Dubner (Freakonomics Podcast, March 2026).
