Fraud continues to rise, and advances in artificial intelligence are making scams more convincing than ever. According to the Federal Trade Commission, consumers reported losing $3.5 billion to imposter scams in 2025, which is three times the losses reported in 2020. Fraudsters are increasingly targeting individuals through emails, phone calls, text messages, social media, payment apps, and online accounts.
1. Social Engineering
Social engineering scams manipulate people into sharing personal information, sending money, or taking actions that benefit criminals. Common tactics include:
- Phishing: fraudulent emails designed to steal personal information or direct you to fake websites
- Vishing: phone calls from scammers posing as a bank representative, government agency, or other trusted organization
- Smishing: text messages that encourage you to click a link, provide account information, or download malicious software
These scams often create a sense of urgency to pressure victims into acting quickly without verifying the request.
2. Imposter and Email Scams
Scammers frequently spoof legitimate email address, websites, and phone numbers to make contact posing as legitimate companies. They may pretend to be your bank, a utility company, a retailer, a government agency, or even a family member in need of help.
Their goal is often to convince you to share sensitive information, send money, purchase gift cards, or click a fraudulent link that compromises your personal information.
3. Account Takeover Fraud
Criminals use stolen usernames, passwords, and other personal information obtained through phishing scams, data breaches, or malware to gain access to online accounts.
Once they gain access, they may change account settings, transfer funds, make purchases, or use your personal information to commit additional fraud. Online banking, email, shopping, and social media accounts are common targets.
4. Payment Fraud
Consumers continue to face fraud involving checks, peer-to-peer payment apps, ACH transfers, and wire transfers. Criminals may steal and alter checks, trick individuals into sending payments to fraudulent accounts, or pose as legitimate businesses requesting payment through unusual methods.
Because many digital payment transactions are processed quickly, recovering funds after a fraudulent transfer can be difficult.
5. Credit Card Fraud
Fraudsters obtain card information through skimming devices, phishing scams, data breaches, or fake websites. They then use the stolen information to make unauthorized purchases or create counterfeit cards.
Protecting Yourself from Fraud
While scams continue to evolve, a few simple precautions can go a long way:
- Use strong, unique passwords and enable multi-factor authentication whenever available.
- Review bank and credit card accounts regularly for unfamiliar activity.
- Be cautious when responding to unexpected emails, phone calls, or text messages.
- Verify requests for money or sensitive information by contacting the company or person directly using a trusted phone number.
- Never click links or download attachments from unknown or suspicious sources.
Most importantly, trust your instincts. If something seems unusual, pause and verify before taking action. A quick phone call to your financial institution or the organization in question could help prevent a costly mistake.
