Fraud tactics have evolved significantly over the past few years, with scammers using increasingly sophisticated strategies to target individuals.
Scammers today leverage advanced technology, social engineering, and even artificial intelligence (AI) to create highly convincing scams. This shift from easy-to-spot, error-laden messages to refined, credible impersonations means that staying vigilant and informed is more essential than ever.
To help you avoid scams, here are today’s top five scams to watch out for, along with practical tips to help protect yourself, your data, and your accounts.
Top 5 Scams to Watch Out For
1. Bank Impersonation Scams
Bank impersonation scams are one of the most prevalent forms of fraud. They are getting more detailed with their impersonations, making it more difficult to detect. Scammers pose as representatives from trusted financial institutions, even going so far as to create fake websites, pull real photos and titles of bank employees on LinkedIn, and even engage in conversations about investments on WhatsApp.
Victims tend to receive alarming messages claiming their accounts are compromised. But the person they are talking to is a scammer, not the bank. It’s important to remember that your financial institution won’t ask for your PIN or password. If a message seems suspicious, contact your bank through its official channels and not through the contact (email, phone number, etc.) that you received from the potential scammer.
2. Tech Support Scams
In these scams, fraudsters impersonate tech support agents, typically from well-known companies like Microsoft or Apple. Victims receive pop-up alerts on their computers warning of viruses or other issues and they are then urged to grant remote access.
This access allows scammers to steal sensitive information –– such as your bank login information –– and to install malware. The malware tracks keystrokes to capture login credentials across a number of your accounts.
Remember, big companies such as Apple and Microsoft do not proactively reach out in these cases, so it’s most likely a scammer.
3. Cryptocurrency and Investment Scams
The complexity of cryptocurrency has enabled scammers to create elaborate investment schemes, taking advantage of the public’s limited understanding of digital currencies. Scammers know that the red flags in these types of scams aren’t as well known.
Fraudsters often set up convincing, high-yield “investment” opportunities that entice people to transfer funds. Since it’s cryptocurrency, the funds are untraceable. You should discuss any investment opportunities with a trusted advisor to avoid falling victim to these scams.
4. Seasonal and Current Event Scams
In these scams, fraudsters use current events or what’s happening in your environment to run their scams. Look out for scams around the holidays. People typically are in a cheery and giving mood that scammers use to their advantage. Only give to charities you are familiar with and think twice if a deal sounds too good to be true.
In a recent case, a scammer targeted a widow who had just endured a hurricane. They found the late husband’s obituary in the paper and decided she’d be a great person to target. The widow was distracted with everything she had going on with the hurricane and losing her husband that she didn’t notice what was going on in her accounts for some time.
5. Pig Butchering Scams
This insidious type of scam combines elements of romance and investment fraud. Scammers use dating platforms and information they find about their target online to build a close relationship with them. They’ll dig into your social media and learn all about you, which gives them what they need to quickly form a bond and gain trust.
Once they have your trust, they send what looks like a very legitimate investment application and suggest starting with a very small investment. Victims see the investment double quickly and are encouraged to make bigger and bigger investments over time.
And at the end of it, the person is out of a lot of money from the “investment”. Make sure you should speak with a trusted financial advisor before making any investments.
Keeping Up with the Latest Scams
Keeping up with new scam tactics is essential, as fraudsters continually adapt to technology and societal trends. As scams get uncovered, many of them get reported online. Here are some trusted resources to help you stay informed and protected:
In addition to knowing what scams to look for, do what you can to proactively protect yourself from fraud. Protecting your data in our digital world is imperative.
How to Protect Yourself from Scams
Cybercriminals and scammers are relentless. To keep your data secure, use a combination of technology, proactive steps, and diligence. Here are some key actions you can take to reduce your risk of falling victim to these scams:
- Use Strong and Unique Passwords – Creating long, unique passwords or passphrases for each account is a powerful first defense. Combine this with multi-factor authentication (MFA) to further secure your accounts.
- Monitor Your Email and Social Media Accounts – Email is often the central hub for personal and financial information, so keeping it secure is crucial. Limit sensitive data shared online, delete old emails, and be cautious about unsolicited messages, especially those requesting financial information or access.
- Limit Personal Information Online – Avoid sharing excessive personal details on social media, as fraudsters often use this data for social engineering. Keeping certain life events private can help you avoid becoming a target.
- Freeze Your Credit – Freezing your credit can prevent scammers from opening new accounts in your name. You can unfreeze it temporarily if you need to apply for credit, but keeping it frozen as a default can be a helpful safeguard.
- Run Antivirus and Update Personal Devices – Malware and viruses can run undetected on your computer, tablet or phone. Using an antivirus and anti-malware solution can identify when your device is compromised. Also update your operation system and change passwords often.
Stay Safe
Scams are constantly evolving, and fraudsters are becoming increasingly professional and adaptive. Recognizing the top scams and following these tips can greatly reduce your risk.
A healthy dose of skepticism, particularly with unsolicited messages, can go a long way. Protecting yourself ultimately starts with you.
Team Hewins, LLC (“Team Hewins”) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training, and no inference to the contrary should be made. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Certain information provided herein is based on third-party sources, which information, although believed to be accurate, has not been independently verified by Team Hewins. Team Hewins assumes no liability for errors and omissions in the information contained herein. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future.