Financial scams are becoming more common every year, and they can affect anyone. From fake bank alerts to urgent messages claiming to be from the government or even a relative in trouble, today’s scams are designed to look convincing and feel personal.
Scammers reach people in many ways, including phone calls, emails, text messages, social media, and even mail. They often pretend to be organizations you trust and may use urgent language to get your attention quickly.
According to the Federal Trade Commission, Americans reported losing $12.5 billion to scams in 2024, an increase of $2.5 billion from the previous year. Fraud experts say scams continue to rise, especially identity theft, online scams, and imposter schemes.
This article breaks down common financial scams so you can stay alert and protect yourself and your money. Once you know the signs, you become a much harder target.
Imposter Scams
Imposter scams are among the top types of fraud in the U.S. In these scams, someone contacts you pretending to be a trusted person, for example, a government agency or bank employee claiming there’s been fraudulent activity or issues with your account. Scammers may also pretend to be companies like Amazon, claiming there’s an issue with a recent purchase. They may pressure you to act quickly and provide personal information to resolve the problem.
Warning Signs
• You’re asked for personal information, such as your Social Security number.
• You’re asked to send money, often through gift cards or wire transfers.
• You’re made to feel scared or rushed.
What to Do
The Consumer Financial Protection Bureau (CFPB) recommends contacting the organization directly using a verified phone number before taking any action. Caller ID and emails can be faked, so it’s in your best interest to reach out to the organization or government agency using the number on their website.
Debt Collection Scams
Scammers may pose as debt collectors to trick you into paying for non-existent debts or debts you’ve already paid off.
Warning Signs
• You can’t obtain written proof of the debt.
• You aren’t given a mailing address or phone number.
• You’re threatened with lawsuits or arrest.
• You’re asked to pay via gift cards or wire transfer.
What to Do
The Office of the Comptroller of the Currency (OCC) suggests asking for written verification of the debt before making any payments or sharing any sensitive information. Know that you have the right to dispute debts and request verification under the Fair Debt Collection Practices Act.
Identity Theft
Identity theft happens when someone steals your personal information and uses it to open accounts, apply for loans, or make purchases in your name.
Warning Signs
• You receive bills for things you didn’t buy.
• You’re contacted by banks or lenders about new accounts.
What to Do
The best way to avoid identity theft is to learn how personal information is misused so you can recognize the signs early. The OCC provides detailed guides to help people understand how identity theft works and how to prevent it.
Phishing
Phishing scams involve fake emails, texts, or websites designed to look like they come from banks, credit card companies, or other legitimate businesses. These scams often involve a realistic-looking message claiming there’s a problem with your account and a link to verify or update your information. These links often lead to fake or harmful websites that steal your personal information or install software on your device.
These scams continue to be widespread, especially as more financial activity moves online.
Warning Signs
• Misspelled words, unusual formatting, or suspicious email addresses.
• Messages that sound urgent or threaten to close your account.
• Links that look “off” compared to a company’s real website.
What to Do
According to the FTC, unwanted calls, texts, and emails are often illegal and probably scams. They recommend deleting suspicious messages and reporting them.
Credit or Debit Card Fraud
Credit or debit card fraud is the unauthorized use of your credit or debit card to make purchases or withdrawals. Scammers can steal your card information without even having your physical card. Card numbers are frequently stolen through hacked websites, fake checkout pages, or skimming devices installed on payment terminals.
Warning Signs
• You notice unknown charges on your account.
• You receive alerts for purchases you didn’t make.
What to Do
Review card statements often and set up alerts through your bank for any unusual activity.
Investment and Cryptocurrency Scams
Investment scams, including crypto scams, have grown rapidly, with losses reaching nearly $5.7 billion in 2024. Scammers trick people into investments by promising guaranteed returns and no risk. The scammers often provide vague information about a secret method or proven system for making money and use high-pressure sales tactics to get your commitment.
Warning Signs
• Promises of no risk, time commitment, or effort.
• You receive very few details about the investment.
• You aren’t given documentation in writing.
• You’re contacted by a stranger online.
What to Do
Before investing, take time to research the opportunity. Look for reviews, warnings, or alerts from trusted sources, and double check that any financial investments are registered with the U.S. Securities and Exchange Commission (SEC). Finally, know that investments always involve risk, and anyone who promises otherwise is lying.
Loan Scams
Scammers often target people in need of financial relief by posing as legitimate lenders. They claim they can provide a loan but instead steal money through upfront processing or verification fees. After you’ve paid, the scammer disappears.
Warning Signs
• The lender guarantees approval regardless of credit history.
• They request upfront fees before you receive any money.
• You’re pressured to act quickly or lose the offer.
What to Do
Before accepting any loan offer, research the lender’s name online and verify that the lender is registered to operate in your state. Be wary of lenders who guarantee approval or are not transparent about their fees. WithU Loans will never guarantee acceptance of a loan or ask you for money up front. If it sounds too good to be true, it probably is.
Protecting Yourself from Financial Scams
While scams are constantly evolving, the best defenses are surprisingly simple. Slow down when something feels urgent. Never share personal or account information in response to unexpected calls, emails, or texts. Regularly review your accounts to catch suspicious activity early.
If you encounter a scam or believe you’ve been targeted, report it. The Federal Trade Commission encourages consumers to report fraud at ReportFraud.ftc.gov, which helps authorities track trends and protect others.
Knowledge and awareness are your strongest safeguards. Government agencies like the CFPB, FTC, and OCC regularly publish updates and free resources to help consumers stay informed. When something doesn’t feel right, trust your instincts. Taking a moment to double check can save you from becoming a victim.
If you think you may have shared information or sent money, contact your bank or lender immediately. Many institutions can take steps to limit damage when alerted early.
WITHU INSIGHTS TEAM
WithU Insights is powered by a team of writers and strategists who are passionate about sharing our knowledge of the ever-changing financial landscape. Through educational articles and resources, we aim to empower you to navigate your finances and life with purpose.