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How to protect yourself from 2025’s scams

You need more than intelligence to outsmart today’s con artists.

Article published: May 02, 2025

This Q&A is based on questions we receive from clients, just like you. Have a question that involves a dollar sign? Share it! Our planners and subject matter experts will help answer them in upcoming issues of Inside Personal FinanceSend us your questions here.


Q:

A friend of mine was scammed by someone who claimed by voice message to be his cousin who needed money. The voice and story were so convincing that he followed her instructions to deposit money into a crypto account. When he called his cousin to confirm receipt, she didn’t know what he was talking about. I’m being extra vigilant about any communication that involves money, but it's tricky to determine what’s a scam these days. What can I do?

A:

Scams are one of the biggest threats to our financial welfare today.

Fraudulent schemes have exploded in number right along with the technology that makes them increasingly effective. A good example is the artificial intelligence that enabled that scam artist to duplicate the voice of your friend’s cousin. And that’s just one example.

 

Scams are big business

Before we get into tackling your question, we need to emphasize just how big a problem scams are right now. The Federal Trade Commission said the amount of money people lost to scams rose 25% to $12.5 billion in 2024 from 2023. Also, scams are becoming more convincing. The FTC said the percentage of people who reported a scam in 2024 and lost money rose to 38% from 27% the previous year.

Here’s another interesting stat:

The FTC said people ages 20 to 29 reported losing money more often than people over 70 in 2024. Every single one of us needs to be vigilant.

 

The rising use of AI in scams

The internet houses a treasure trove of information on many of us: our phone numbers, addresses, pictures and videos that have the sound of our voices. That’s in addition to personal information that may be floating around due to data leaks. Scam artists can use AI tools with this information to create believable scenarios.

Technology’s ability to mimic design and verbiage has made it harder to quickly determine whether a communication is from a bank or a government authority.

So, let’s get into spotting scams. Guess which of these scenarios are scams.

Scenario 1: You’re at the supermarket, and the bank calls

A man was doing last-minute food shopping to get ready for houseguests when a concerned representative from his bank called to say that someone tried to log in to his account. The caller ID had the name of his bank, and the representative knew the man’s password, username and email address, so the man was confident it was his bank calling. To confirm his identity, the rep said to tell them his two-step authentication code that was texted when the scammer tried to log in.

Scam or not a scam? It’s a scam.

Red flags:

  • Banks don’t call you to request personal information.
  • Urgency is used to fluster you and make you an easier target.
  • Knowing login information doesn’t verify the source. As mentioned, data leaks have given scam artists access to passwords, usernames and emails at certain sites.
  • Caller IDs are also not sufficient verification as technology can spoof them.

Scenario 2: Love and money

A man met a woman through a well-known dating app. He was a software engineer in Los Angeles. She said she was a bond trader in New York City, so they decided they would talk for a couple a months before going to the trouble of meeting. After a month of talking, which included sharing videos and photos of where she lived and worked, she said she heard of a great crypto investment. As a show of good faith, he deposited $15,000 at a newfangled crypto website she provided him.

Scam or not a scam? You guessed it.

In these scams, the man’s money may be routed to the fraudster’s account. This scheme is a particularly pernicious one called “pig butchering.” Pig butchering is a tactic of “fattening” the victim with romance over time and then “butchering” them by draining their money.

Red flags:

  • Fraudster investment ideas or requests for money and expresses a desire to have sustained contact after that (to extend the scam).
  • Unusual methods of payment or investment are involved, such as the new crypto website the man was directed to.
  • Videos and photos are not themselves verification. AI can manipulate videos and photos to spin a story. The fraudster in this scenario may not even be a woman.

Scenario 3: Computer help

A full-screen pop-up message appears on your laptop computer claiming to be from the maker of your operating system that says your computer has a virus. It looks real, with the software maker’s logo and general branding. It flashes a “tech support” number to call to fix the problem.  

Scam or not a scam? Scam!

Red flags:

  • Legitimate software firms are not in the habit of pushing full-screen pop-up messages to communicate. AI can make them look convincing, so be vigilant.
  • Scams like this have links or phone representatives that encourage you to download software that’s actually malware, which can hack into your personal information stored on your computer.

While those examples may be unsettling, there are key ways to protect yourself.

 

Ways to protect yourself

  1. Stay calm and never give into urgent requests for personal information or money. This includes financial institutions and people claiming to be from the government or law enforcement. Scam artists try to manipulate your emotions, so a calm mindset and standing your ground are critical to protecting yourself.
  2. Trust your gut and your truth. Scam artists may have the latest technology but that doesn’t take away a potentially more powerful tool – skepticism. If you think something is suspicious, trust that and end unsolicited communication. Scam artists may use claims of you owing back taxes, having speeding tickets or toll dues or worse. Government agencies don’t contact you with random phone calls, texts and emails, so don’t respond to them.
  3. Don’t click on unsolicited links or download unrequested software from unverified sources. Compare links in email addresses and texts to see if there is any strange lettering or letter left off, such as “.go” versus “.gov.” Take note that this is not foolproof verification given greater sophistication of spoofing links, as well as texts and email addresses.
  4. Research any companies and government agencies making requests before you take any action. Legitimate companies and government agencies, in general, don’t email or call to request personal information. If you think there is a possibility that a request is legitimate, always verify the request by calling their established general number (don’t trust the number they gave you).
  5. Verify any money requests by phone, email or text coming from family and friends. Call them to confirm the requests and the circumstances. Also, some are turning to a “family password,” which is a secret word known strictly to you and your loved ones. It can be used to help verify a loved one’s identity on the phone.  
  6. Watch for unusual payment requirements. Scam artists usually demand payments in cash, crypto, money orders or wire transfers as they can be harder to track.
  7. Ignore shame tactics. If you try to resist giving money to fraudsters late in the scam process, they may threaten to reveal damaging information they claim to have on you, such as revealing to your loved ones that you’ve already fallen for much of the scam. 

    Don’t fall for it. You’re better than that. End communication immediately. 

    If you realize that you’re a victim of a scam, immediately tell the authorities (ReportFraud.ftc.gov) and your financial planner. Bad news doesn’t get better with age.
  8. Freeze credit and place fraud alerts at credit agencies. All three credit agencies allow you to freeze your credit, which prevents credit from being taken out in your name. You can also place fraud alerts at the agencies, which require financial institutions to confirm with you requests for credit in your name.
  9. Use strong passwords and change them periodically.
  10. Seek help from trusted sources. You’re not alone in this fight. Never be afraid to report to the authorities when you’re targeted by a scam or if you realize that you’ve become a victim of a scam. Ask our financial planners for help. We’re here for you.

 

WE HOPE YOU’VE FOUND THIS INFORMATION HELPFUL

Remember that any financial guidance must be adapted to your unique circumstances, so consult your financial planner. In the meantime, keep those questions coming!

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This material was prepared for educational purposes only. Although the information has been gathered from sources believed to be reliable, we do not guarantee its accuracy or completeness.

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