Scams Are Getting Smarter – Are You?

Gone are the days when scams were easily detectable and avoidable. While many pride themselves on their capability to detect and avoid these dangerous schemes, data shows that scammers exploit this overconfidence, using ever-advancing techniques to trick their typical elderly targets and younger digital natives.

One Citi survey found that 90% of U.S. adults believe they can identify and prevent financial scams, but more than a quarter of the 2,432 recipients of the online poll have been victims already. Additionally, 32% of Gen Zs report being victims of financial scams, the highest of any age group regardless of status as one of the most tech-savvy generations. Even more so, according to Deloitte, Gen Zs are more than three times as likely than baby boomers to fall victim to online schemes.

If you think your grandma is the only one at risk of scams, you couldn’t be more wrong. It’s crucial to individuals’ financial health to stay consistently aware of all the latest scamming tactics, both expected and unexpected, regardless of age.

Traditional Scams

Most scams fall into one of the categories below, and knowing what they are can help you better identify advanced adaptations.

Phishing

Fraudulent emails that claim to originate from legitimate sources encourage receivers to provide personal financial information.

Smishing

Fraudulent text messages that claim to originate from legitimate sources encourage receivers to provide personal financial information.

Vishing

Fraudulent phone calls or voice messages that claim to originate from legitimate sources encourage receivers to provide personal financial information.

Charity Scams

Scammers request donations from individuals, tricking them into thinking they are giving to a charity.

Impersonator/Imposter Scams

Scammers pose as a trusted entity, such as a government agency, organization, or loved one, through text, email, phone call, or another communication method to deceive individuals into providing personal financial information. This is the most commonly reported fraud category.

Investment and Get Rich Quick Scams

Scammers offer individuals incentives that promise large sums of money in return for an initial investment. In reality, the scammers steal the investment. Well-known versions include Ponzi and pyramid schemes.

Romance Scams

Scammers create fake romantic relationships with individuals so they can financially exploit them, leveraging their victim’s emotional attachment.

Prizes, Sweepstakes, and Lottery Scams

Scammers contact individuals under the false narrative that they have won a prize, sweepstake, or lottery, claiming they must provide personal financial information to claim their gift or reward.

Prevalent Scams in 2025

1.) Bank Transfer Scams

The FTC reports that bank transfers or payments are responsible for the most scam losses in 2024 at $2 billion, followed by cryptocurrency at $1.4 billion, but both often go hand in hand.
Categorized as an imposter scheme, a scammer will contact an individual about a financial problem, such as suspicious activity on an account or missing payments, while pretending to be a legitimate employee of a federal agency or trusted organization.

Whether the scammer suggests the receiver owes money or that their money is at risk, they will push their victim to move their savings, frequently via wire transfer, physical cash out, or purchase of cryptocurrency/gold bars/gift cards. In reality, the scammer pockets the money by transferring it to their own account or collecting the cash in person, falsely claiming they will keep it safe.

2.) Cryptocurrency Scams

Cryptocurrency scams, commonly categorized as imposter and investment scams, often originate from exploited relationships. Typically, scammers deceptively express how much money they make investing in crypto and encourage their targets to do the same. The victim begins to deposit to the provided fraudulent website/cryptocurrency, but the scammer pockets those investments while providing false narratives of investment success. While they may allow some withdrawals throughout the process to build trust, the scammer intends to steal as much money as possible.

Pump and Dump

Another similar strategy for crypto scams is “pump and dump” schemes. Within the “pump” phase, a previously established group of fraudsters artificially boosts the price of a specific type of cryptocurrency by encouraging others on social media, email chains, and so on to invest. During the “dump” phase, once the price reaches the desired target, the group of scammers sells their investments at the inflated price, bringing in a significant profit and leaving their victims with no value in their investments. Unfortunately, these scams are often controlled by influencers, as they can reach many people quickly, and there is a sense of trust between the creator and their followers.

BTMs

Bitcoin ATMs, aka BTMs, look like traditional ATMs but exchange cash for cryptocurrency. Not all BTMs are used for fraud, but scammers will convince individuals over text, email, call, and so on to deposit their money into a specific BTM to protect it or pay off a fee. Instead, the deposits go to the scammer’s cryptocurrency account.

3.) Social Media Scams

According to the FTC, while bank transfers were responsible for the largest scam losses in 2024, 70% of people reported losing money more often when contacted through social media. Platforms such as Facebook, Facebook Marketplace, Instagram, TikTok, Telegram, and WhatsApp are valuable tools for scammers as they can reach many people quickly and execute most schemes through direct messages or regular posts.

Direct Messages

Have you ever received a Facebook messenger notification from an “administrator” saying your account has been hacked? That’s spam, my friend! Direct messages are essentially smishing schemes, as they can include harmful links and provide a communication method to build a deceptive relationship. Rather than use a regular post (though scammers are sure to make these as well), scammers take advantage of messages to trick users through many strategies, such as fake giveaways, investment schemes, imposter scams, romance scams, and more.

E-commerce

Outside of your personal social media inbox, you are still at risk. Scammers may prompt users to click on ads or visit e-commerce websites that appear real but are illegitimate. Especially with AI technology, scammers can write fake reviews, create enticing images, and write captions that match what consumers expect from trustworthy brands.

Quizzes or Personality Tests

Who doesn’t love a fun quiz? “What superpower would you have?”, “What Harry Potter character are you?”, what about “How much is this scam going to cost me?” These dangerous tests advertised on social media may start lighthearted, asking seemingly harmless questions, but they can progress into a security threat. Scammers can include security questions in these quizzes, such as your favorite hobby or the make and model of your first car, allowing them to hack into other accounts on and off social media.

4.) AI Scams

You’re not alone if you’ve been fooled on social media, captivated by a post featuring a unique creature or stunning location, only to find it’s AI-generated. Been there! Artificial intelligence is a new frontier, beautifully powerful yet full of new concerns for financial security, as it can enhance the techniques of nearly all scam categories.

Voice Cloning

Imagine any form of an imposter scheme heightened to match the mannerisms, tone, and personality of those you trust. Scary. Thanks to AI technology, scammers can mimic the voices of loved ones or even their victims to steal money directly or trick corporate professionals into thinking you are authorizing financial decisions. Senior citizens are especially warned of grandparent schemes, and they can no longer rely on someone’s voice alone for security.

Written Word

In extension to voice cloning, AI does a great job at matching the tone of written communication. If you’ve turned to ChatGPT to help write an email or essay, you know exactly what I’m talking about. Error-free, genuine writing in seconds is like a golden egg for fraudulent activity, and scammers know that all too well.

Deepfakes

Deepfake AI technology can create realistic audio and videos of people, especially those with much influence and power. While Deepfakes can be funny at times, they quickly turn dangerous. Check out this example: Tom Cruise Deepfake. Would you believe me if I said this isn’t Tom Cruise? It’s actually social media influencer Miles Fisher, aka DeepTomCruise, who used AI technology to put Tom Cruise’s fake onto his own. Cool, but kinda scary, right? Deepfakes can be performed on anyone. Yes, anyone: The president, your mom, your high school calculus teacher. This powerful tool opens Pandora’s box of scams, blackmail opportunities, and reputation-crushing content.

5.) Smishing

Phishing’s just-as-annoying cousin, smishing, is active and thriving in 2025. While text scams aren’t new, scammers consistently try new messages that may fly under your radar and get you to act before you even question it.

Popular smishing text messages:

• UPS or Amazon package has failed to deliver
• Account suspension from a financial institution or payment provider
• Unpaid fee for missed jury duty
• Device login security alerts
• Unpaid parking invoices
• Unpaid toll fee
• Imposter texts
• IRS tax messages
• Request from boss to buy gift cards
• Surprise offer, fake price, lottery, and sweepstakes announcements
• Accidental “wrong number” messages
• The scammer will lead with a text that sounds like they messaged the wrong number. In reality, these are often romance or employment scams, hoping to keep you in conversation and get you to reveal personal information.

How to Respond to Smishing:

If you have received a text message and believe it is a scam, report it to https://reportfraud.ftc.gov/. You can also forward the message to 7726 (SPAM); however, be careful not to click any links within the message. Additionally, do not respond to smishing messages. Block the number using these instructions for Apple or Android.

6.) Job Offer Scams

Job seekers are eager to secure employment opportunities, and with federal layoffs rising and graduation season approaching, the Better Business Bureau warned that job seekers must stay alert and aware of job scams and fake employment agencies, especially since reports have nearly tripled since 2020. Promising victims a job, scammers request personal banking information, suggesting it is for direct deposit purposes, application fees, and payment for certification or training while keeping it for themselves.

Common employment scams:

• Ghost jobs – listings for positions that don’t exist
• Unsolicited job offers
• Fake recruiters
• ATS-Compliant services for job applicants
• Social media and messaging app job offers
• Fake staffing agencies

Positions often used for scams

• Remote jobs
• Reshipping and reselling
• Nanny and virtual assistant
• Envelope stuffing
• Mystery shopping
• Post office positions
• Rebate processor
• Data entry
• Gamified tasks

Signs of employment scams:

• The interview and hiring process is fast-paced
• Most communication is digital, via Zoom/email/or a specific app you have to download
• The job requires minimum qualifications
• Before onboarding, the company requests your social security number, banking information, equipment purchases, and training payment.
• The job provides no formal contact and refuses traditional payment methods
• If a job sounds too good to be true, there’s a good chance that it is.

How to Avoid Being Scammed

Whew. There are a lot of scams out there. The good news is the more you know about them, the more likely you are to avoid them. Additionally, many scams can be avoided using the following tips and precautions.

1. Never transfer money to someone you don’t know, barely know, or are not entirely confident in.
2. Do not respond to or click links included in unexpected messages.
3. Do not use the contact information provided by the messenger. Separately research and verify the situation directly with the entity or person they claim to represent.
4. Remember: the FTC never requests individuals to move money to protect it, nor do they make threats or demands.
5. Scammers often encourage recipients to act fast and keep the message a secret. This isolates the victim and creates a sense of panic and urgency. Slow down and ask a trusted friend or loved one about the situation.
6. Look out for grammatical or spelling errors to identify scams.
7. Remember that some of your data is accessible online. Just because a messenger references personal information does not mean it’s legitimate.
8. Enable two-factor authentication on accounts with sensitive information to create multiple barriers to protect yourself from scammers.
9. Back up your data regularly to protect your information if it’s damaged by scams and malware, and consider installing malware protection software.
10. Read our article about ways to protect the seniors in your life from scams

How to Respond:

You want to do more than less when in doubt and to avoid being scammed. Take extra precautionary steps, even if they are inconvenient. If you think you have engaged in a scam or you’ve already fallen victim, staying silent lets scammers win. Easily report scams on https://reportfraud.ftc.gov/. If you accidentally click on a scam link, all hope is not lost. It will bring you to a fraudulent website, but typically, scammers can’t do much more without additional information from you, such as login credentials. DO NOT provide any information, and disconnect from the internet to stop any malware from spreading. If you have malware detection software installed, scan for harmful viruses.

If you provided information through these links, we recommend the following actions:

• Contact your financial institution or card provider immediately, inform them of the situation, and request that they disable transactions and cancel your card.
• If you provided login credentials, go to the legitimate site another way (not through the same link) and login yourself. Change your password and take all possible security protections offered by the platform.
• Heavily monitor your identity, credit, and bank accounts moving forward. Freeze your credit and check your credit report regularly for suspicious activity.

Remember: While technological advances make our lives easier, they often open more doors to scammers. Stay vigilant. If something seems off, double-check before clicking. If it feels like you’re missing out on a great opportunity, it’s likely too good to be true. Be safe instead of sorry.

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