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Don’t Fall For It: Ways to Help Spot and Stop Financial Scams

You can protect yourself from financial scams by learning the most common scam tactics, recognizing red flags early, and knowing exactly what steps to take when something feels suspicious. October is Financial Exploitation Awareness Month, making it an ideal time to review how to safeguard your money and personal information. According to the FBI’s 2024 Internet Crime Report, scams targeting adults 60 and older resulted in more than $16 billion—a 33% increase in losses from 20231 — and that number continues to rise as criminals adopt more convincing tactics.

What Is a Financial Scam?

A financial scam is any deceptive attempt to steal your money or personal information by impersonating a trusted source or creating a false sense of urgency.

Scammers may pretend to be:

  • A bank representative
  • A government agency (such as the IRS or Social Security Administration)
  • A utility company
  • A family member in distress
  • A legitimate business


Their goal is always the same: to make you act quickly before you have time to verify.

What Are the Most Common Financial Scams Today?

The most common scams involve impersonation and urgency.

One way scammers may try to trick you into sending them money is by pretending to be someone else, such as a bank representative, an IRS employee, or even a family member. More recently, a common scam has been the highway “tag” scam, in which a scammer would send a fake text message about unpaid tolls.
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Impersonation Scams

Scammers pose as someone you trust and request sensitive information or money.

Examples include:

  • Fake bank or IRS calls
  • Messages claiming your account has been compromised
  • Texts about unpaid tolls (the recent “highway tag” scam)

  • Tip: A legitimate organization won’t ask for your Social Security number, bank account details, or passwords over the phone. If in doubt, reach out to your bank to confirm whether it’s a valid communication or a scam and that no action is needed.

“Family Emergency” Scams

Scammers pretend to be a loved one in trouble who urgently needs money.

What to do:

  • Do not act immediately
  • Contact that person directly
  • Verify with another family member before sending funds

That pause can prevent serious financial loss.

Account Threat Scams

Fraudsters claim your account has been frozen, hacked, or compromised and demand immediate action.

Response:

  • Do not click any links
  • Do not share any personal information
  • Call your financial institution directly to confirm

How Can You Protect Yourself From Financial Scams?

Strong habits and verification are your best defense.

Steps to Help Protect Yourself

  • 1 Use strong passwords and enable multi-factor authentication
  • Be cautious of urgent requests — pressure is a red flag
  • Monitor your accounts regularly for unfamiliar charges or other activity
  • Talk with someone you trust before making large transactions
  • Always verify requests for personal or financial information directly with the organization involved

What Should You Do If You Suspect a Scam?

Reporting helps protect both you and others. If you believe you’ve encountered a scam:

  • Visit ReportFraud.ftc.gov for reporting tools and guidance
  • Contact your bank or financial institution immediately
  • Notify your local police department

Key Takeaways

  • Scammers rely on impersonation and urgency
  • Verification is your most powerful defense
  • Never share personal information without confirming the source
  • Pause before acting — especially in emotional situations
  • Involve your financial professional when something feels off

When Should You Contact Your Financial Professional?

If you receive a suspicious request or notice unusual activity, your financial professional can help review your accounts and provide guidance to keep your finances secure.

Staying alert — and informed — is one of the strongest protections you have.

Related Posts

1 2024 IC3Report.pdf

GIPUB-002 01-25

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