7 common financial scams to protect yourself from in 2025 & beyond

Financial scams are on the rise! Learn how to protect yourself from 7 common schemes in 2025 and beyond, including:

1. Financial advisor scams
2. Cryptocurrency scams or pig butchering
3. Charity and disaster fraud
4. Financial aid scams
5. Elder fraud
6. Credit card skimming
7. Romance scams

Anyone can become the victim of a financial scam. Unfortunately, the number and complexity of scams are increasing. From financial aid scams and student loan scams to financial advisor scams and credit card skimming, here are several of the most common financial scams you will want to protect yourself from.

Financial advisors are meant to be fiduciaries acting in the best interest of their clients. But there are scammers out there who will pretend to take advantage of investors’ desire for financial security (and big returns). A few common types of financial advisor scams include:

• Ponzi schemes: Criminals use your money to pay off other investors, like a pyramid scheme.
• Churning: Criminals who pretend to act in your best interest encourage you to buy and sell investments often just so they can make more in commission, even if the trades hurt you.
• Pump-and-dump or ramp-and-dump scams: In this type of scam, criminals encourage investors to open an account at a specific broker-dealer, guide them on which stocks to purchase and in what amounts, driving the price upward. Eventually, investors become unable to sell, and the price of the securities crash.¹

If “pig butchering” sounds ugly, that is because it is. In this type of scam, a bad actor tricks a potential investor into putting their money into fake cryptocurrency investments, “fattening you up,” and then taking all your money later.

Usually, in this type of scam, someone will contact you on social media, text you, or even reach out on a dating profile. They will then flatter you and build rapport with you, and say they’re a crypto expert or know someone who is. They will often help set you up with accounts, and you might even see your money growing or be able to withdraw some funds. Then, when you try to withdraw your earnings, they’ll say you owe taxes or fees and disappear with all of your money.²

There are some people in this world who shamelessly prey on the goodwill of others, creating fake charities, especially after major natural disasters or other events where people feel compelled to help.³ Charity fraud can happen over crowdfunding platforms, via cold calls, emails, or social media posts, so it’s best to be vigilant and:

• Only give to charities you know and trust. 

• Do your research before donating. 

• Use a credit card or check, not cash or gift cards. 

• Be careful of links and emails from unknown senders. 

• After a disaster, be VERY careful about hiring contractors.

Federal student aid always comes with free help. Companies who charge for services you can get for free are, at best, trying to take your hard-earned money.

Be wary of anyone guaranteeing aid, demanding payment upfront, or asking for your FSA ID.

The official Free Application for Federal Student Aid is, as its name suggests, free at fafsa.gov, and your loan servicer can help with repayment options at no cost to you. Protect yourself by applying on the official website, keeping your FSA ID private, and being cautious about who you share your information with.⁴

As a group, seniors are often trusting and polite. They also are often homeowners with accumulated nest eggs. This makes them a prime target for scammers to take advantage of.

Scammers targeting the elderly often engage in the following senior financial scams:⁵

• Grandparent scam/emergency scam: In this type of scam, a criminal poses as a senior’s grandchild and pretends to be in distress.
• Tech support scam: A criminal engaged in a tech support scam pretends to be a computer expert, and often one who is there to help fix typically nonexistent computer issues. They then use this established contact to gain access to personal devices and information.
• Government impersonation scam: In this type of scam, the criminal poses as a government employee and threatens to arrest or prosecute the victim unless they send funds.
• Sweepstakes scams: Criminals claim their targets have won a foreign lottery or sweepstakes, which they are eligible to collect for a “fee.”

Credit card skimming occurs when devices are installed anywhere credit cards are used to capture card data and/or record cardholders’ PIN entries.

While not exactly elaborate as other scams, credit card skimming can still be extremely financially damaging. In fact, skimming is estimated to cost financial institutions and consumers more than $1 billion each year.⁶

One of the most common places credit card skimmers are found is at fuel pumps. They may also be found at ATMs or electronic benefits transfer (EBT) locations.

Everyone wants to find love. Unfortunately, scammers sometimes use this to their advantage. Some criminals create fake profiles on dating sites and social media.  After connecting or matching with you, they pretend to fall in love with you, they start asking for money. 

Often, someone engaged in this type of scam will try to move the “relationship” along as quickly as possible. They will almost always seem extremely genuine, caring, and believable, usually having an excuse about why they can’t ever meet in person. They then may ask for money for a medical emergency or unexpected legal fee.⁷

Always do your research when dating someone online. Go slowly, ask lots of questions, and be wary of moving from dating apps or sites to other methods of communication. Always try to verify that the person you’re speaking with is real.

Think you may have fallen prey to a scam? Visit our guide on how to report a scam for additional information. Otherwise, head to our online safety page to learn more about how to avoid financial scams and protect yourself when banking digitally.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

¹ https://www.fa-mag.com/news/scam-artists-are-masquerading-as-financial-advisors--finra-warns-76108.html 

² https://www.fbi.gov/how-we-can-help-you/victim-services/national-crimes-and-victim-resources/cryptocurrency-investment-fraud 

³ https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/charity-and-disaster-fraud 

⁴ https://studentaid.gov/resources/scams 

⁵ https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/elder-fraud 

⁶ https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/skimming ⁷ https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/romance-scams