We’ve all read a story about someone who fell for a scam and thought, “I would never be that gullible.” But scammers aren’t targeting gullible people.
Most scams target busy, trusting, or stressed people, which means they’re targeting basically everyone – and they’re successful. In 2025, Americans reported nearly $21 billion in internet crime losses. That’s a 26% increase from the year before.
Protecting your financial security starts with knowing what these scams look like before one lands in your inbox or on your phone. In this blog, we’ll walk you through the most common ones, the red flags they share, and exactly what to do if you’re targeted.
The Most Common Financial Scams to Watch For
Scammers rely on a handful of tried-and-true plays. Most work by hitting an emotional button like love, fear, or panic, so you act before you think.
Once you know them, they get much easier to spot. Here are some of the most common ones:
Romance scams: Someone you meet online moves the relationship along quickly, always has a reason you can’t meet in person, and eventually hits a “crisis” that requires you to send money.
Grandparent scams: A caller pretends to be a panicked grandchild, or a lawyer or officer helping them, and asks for money right away. With AI voice cloning, the voice on the line sounds exactly like someone you love.
Phishing: Fake emails and texts that look like they’re from your bank, a favorite retailer, or even a coworker or friend, designed to get you to click a link or share your information. This is the most commonly reported internet crime.
Jury duty and government impersonation scams: Someone posing as a court official or agent says you missed jury duty or owe back taxes and threatens arrest unless you pay immediately.
These aren’t just stories we’ve heard about. We’ve seen them up-close and personal! One of our clients almost transferred $20,000 to an email scammer. Thankfully, their bank flagged the transfer before it went through.
Another time, a woman in her 40s received a call from someone claiming to be from the FDIC. The person on the other end of the line told her to go meet someone at a local bank. What made this particular scam so frightening was that the caller already knew a lot about her, including her Social Security number.
This is exactly what makes smart people fall for financial scams. Knowing personal information doesn’t guarantee a caller is legitimate, but it sure makes it feel like they are legit.
5 Scammer Red Flags
Scams come in many forms, but they tend to follow the same script. Learn to recognize these warning signs, so you can spot a scam no matter how it's packaged.
Fake Urgency
“Act now,” “your account will be frozen today,” or “this offer expires in an hour.” Scammers use this language because they want you to react before you have time to think.
Scary Threats
Scammers threaten their targets with arrest, lost benefits, a frozen account, or exposed secrets. Fear is one of their most effective tools.
False Secrecy
Any request to keep it quiet is a major warning sign. Real institutions never ask you to hide a transaction from your family or your bank.
Unusual Payment Methods
Crypto, gift cards, wire transfers, and cash apps are a scammer’s favorite because they’re hard to trace and nearly impossible to reverse.
Spoofed Numbers
Keep in mind that caller IDs and email addresses can be spoofed. This means that a call can look like it’s coming from your bank or a government agency when it really isn’t.
What to Do When You’re Not Sure It’s Legit
If a call, text, or email makes your stomach drop, the best thing you can do is simply slow down. Scammers are counting on a quick reaction, so even a few minutes of pause takes away their advantage. Don’t click the link, don’t download the attachment, and don’t share any personal information. If it’s a phone call, hang up. You can always call back.
Next, go to the source. Look up the official phone number for your bank on the back of your credit card, your actual police department phone number online, or whatever other agency claimed to be calling you. Once you have it, call that number directly. Never use a number or link provided by the person who contacted you.
It’s also wise to talk it over with someone you trust, whether that’s a family member, your bank, or a financial advisor. A second set of eyes can spot what you can’t when emotions are running high.
For family emergencies, consider setting up a family code word that only your loved ones know. This way, a fake “grandchild” or relative can’t convincingly impersonate someone you care about.
What to Do if You Think You’ve Been Scammed
If you think you’ve been scammed, you need to act quickly. Contact your bank or credit card company right away to report the fraud. Ask them to flag, freeze, or monitor the affected accounts. Then change passwords on any accounts that may be compromised, turn on two-factor authentication, and watch your credit reports for activity you don’t recognize.
You can also report the scam, even if you think the money is gone for good. File a report with the FBI’s Internet Crime Complaint Center (IC3), the Federal Trade Commission, and your local law enforcement. Save any emails, texts, receipts, or phone numbers as evidence.
Also give yourself some grace. Scammers design scams to fool smart, careful people. The embarrassment many victims feel often keeps them quiet. But you don’t have to cope alone. The AARP Fraud Watch Network Helpline and the FINRA Foundation offer free, judgment-free guidance and resources for victims and their families.
Scams Targeting Teens
Scammers target young people, too. One of the fastest-growing scams is sextortion. The National Center for Missing & Exploited Children (NCMEC) shared that it received more than 50,000 reports of financially motivated sextortion in 2025. That’s an average of 137 reports a day.
It often starts with something normal, like a friendly DM or some flirting. The conversation moves along, photos get traded, and then the tone changes. That’s because the “friend” is actually a scammer working from a script. Suddenly, they’re threatening to send the images to the teen’s friends, classmates, and family unless they pay.
Like every scam we’ve mentioned, sextortion works by manufacturing urgency and shame. Teens often feel too embarrassed to tell anyone, which is exactly what the scammer wants.
That’s why you need to have these conversations with your children before it happens. Explain how the scams work and remind your kids that anyone they meet online may not be who they say they are.
If it does happen, here’s how to handle it:
Don’t panic and don’t pay. Paying rarely stops the threats,
Stop responding and block the account.
Tell a trusted adult. Make sure they know they won’t be in trouble for telling you.
Save the evidence, including usernames, messages, and screenshots.
Report it to the platform and to law enforcement.
Slow Down, Verify, and Protect What You’ve Built
Scams rely on emotion and speed, so even the smartest, most careful people can get caught. The best defense is to watch for the red flags, including fake urgency, threats, secrecy, and unusual payment requests. If you do get caught, act quickly, report it, and remember there’s no shame in being targeted by professionals.
If you ever have questions about protecting your retirement accounts, or if something just doesn’t feel right, clients should reach out to our team at Gretchen Rehm Financial before you act. As your local financial team, we’re here for you!