Top 10 financial scams targeting consumers

Financial fraud is more widespread than many people realize, and it's becoming increasingly difficult to detect. Roughly three-quarters of Americans have experienced an online scam or financial fraud, with 30% reporting that it had a significant impact on their finances.

Scammers are using more sophisticated tactics, from spoofing technology to leveraging exposed personal data, to make their schemes seem legitimate. Protecting yourself starts with staying vigilant—and understanding the most common financial scams targeting consumers.

1Investment scams

Investment scams have become the costliest form of financial fraud in the US—and one of the most common.

Contrary to what some might believe, investment scammers don't just target the ultra-wealthy. In fact, researchers at the University of Pennsylvania's Wharton School estimate that 1 in 10 investors will fall victim to investment fraud at some point.

How to protect yourself

There are many types of scams targeting investors, including relationship scams, pump-and-dump schemes and imposter scams. While each of these scams works differently, most feature unrealistic promises.

If someone guarantees high returns, tells you the investment is risk-free or invites you to get in on the ground floor, be wary. If an investment sounds too good to be true, it probably is.

2Bank imposter scams

Imposter scams have become one of the most common types of financial fraud in the US, with reported losses totaling $12.5 billion. Fraudsters typically reach out by phone or text, claiming there's fraudulent charges or suspicious activity on your account. To make it look like they're resolving the issue, they'll ask you to verify your identity.

To appear legitimate, bank imposters use increasingly sophisticated tactics, including:

• Spoofing your bank's phone number so it appears on your caller ID
• Sending emails or texts prompting you to reset your password or log in to review suspicious charges
• Referencing personal information—such as your name, date of birth, Social Security number or account details—that may have been exposed in data breach

Even seemingly harmless actions like sharing a one-time verification code can give scammers access to your bank account.

How to protect yourself

Follow basic account security best practices to help keep your information—and your bank account—safe. If you receive an unsolicited text or phone call that appears to be from your bank, don't share any information or click links—even if the message seems legitimate or urgent.

Instead, contact your bank directly using a trusted number, such as the one on the back of your debit or credit card, to verify the request.

First Citizens Bank will never contact you to ask for your PIN, password, one-time verification code or any other sensitive account information.

3Text message scams

Text message scams come in a few forms. In some cases, fraudsters send text messages that appear to come from a familiar company—such as a bank, online retailer or package delivery service. In others, they may pose as someone you know like a manager or coworker and ask you to purchase gift cards or share sensitive information.

Wrong-number scams

An increasingly common variation is the wrong-number scam. It begins with an innocent-looking text message from someone who appears to have the wrong number. If you respond, the sender may try to engage you in conversation—sometimes even sharing photos to appear legitimate. These interactions can continue for weeks or months before the scammer makes a request.

In some cases, they'll ask for financial assistance. In many cases, however, the scammer will try to convince their targets to make fake investments. More often, they attempt to persuade victims to invest in fraudulent opportunities.

Extortion scams

Another common text scam involves extortion. After some messages have been exchanged, the scammer may falsely accuse the victim of a crime—for example, posing as a parent and claiming the person they were communicating with is underage—and threaten legal action, public embarrassment or physical harm unless money is sent. In other cases, they may use shared photos or messages as leverage to demand payment.

How to protect yourself

If you don't recognize the sender, proceed with caution. Avoid engaging in conversation, sharing personal information or sending photos to someone you don't know. Be especially wary of messages that ask you to click links, share information or send money.

If something feels off, delete the messages. If you receive threats or are being falsely accused of a crime, report the incident to local law enforcement.

4Phone scams

Phone scams have existed for years, but advances in AI and caller ID spoofing technology have made them increasingly difficult to recognize. While tactics may vary, most telephone scams rely on one key strategy: exploiting a victim's emotions.

Common types of scam calls include:

• Debt collector scams: Criminals may impersonate an IRS agent, debt collector or process server seeking immediate payment on unpaid debt. In other cases, they may claim you qualify for debt forgiveness.
• Family emergency scams: In this increasingly common scam, fraudsters may claim that a family member is in danger. In some cases, they may even use AI to convincingly impersonate a loved one in distress.
• Imposter scams: Fraudsters often pose as trusted entities, including law enforcement, local courthouses or government agencies like the FBI, IRS or Social Security Administration.

To prevent you from thinking clearly, scammers often create a sense of urgency or fear. They may demand immediate payment or sensitive information and threaten serious consequences—including arrest—if you don't comply. Their goal is to pressure you into acting quickly without verifying the situation.

Common signs of a scam call include:

• Aggressive deadlines or a strong sense of urgency or secrecy
• Threats of arrest or other serious consequences
• Requests for payment via gift cards, Western Union or cryptocurrency
• Claims of representing a government agency or law enforcement
• References to old, inaccurate or unfamiliar debt
• Requests for sensitive information, including verification codes and passwords
• News of unexpected lottery winnings, prizes or debt relief
• Requests for remote access to your computer
• Details that seem inconsistent or don't make sense
• Instructions not to share details of the call with family, friends or your bank

If you notice any of these red flags, hang up immediately. When in doubt, verify the information independently using a known phone number or contact your local law enforcement for support.

5Phishing scams

Modern email scams can be tricky to detect. Cybercriminals often mimic legitimate domains, impersonate trusted contacts or reference personal information to make their messages seem believable.

Typically, phishing emails aim to prompt you into some form of action—such as clicking a link, sharing sensitive information, opening an attachment or sending money. Many email scams create a sense of urgency. For example, they may claim that your account has been hacked and prompt you to reset your password by entering your login information to a site they control.

Signs of a scam email

Because phishing scams use a wide range of tactics, it's important to watch for common warning signs like:

• Email addresses from incorrect or questionable domains, such as login@first-citizens or support@1stcitizens instead of @firstcitizens.com
• Messages asking you to log in to reset your password or review unusual activity
• Generic greetings that don't include your name
• Obvious misspellings or poor grammar
• Unsolicited attachments or suspicious links

If an email seems suspicious, don't click any links or download attachments. Mark it as spam and report it as a phishing attempt if your email provider offers this as an option.

6Payment-app scams

Popular apps like Cash App, Venmo, Zelle® and PayPal offer a quick and convenient way to send and receive money. However, their wide use has also made them a target for scammers.

One common payment-app scam involves a seemingly accidental money transfer. The fraudster will contact the recipient, claim they've sent the money by accident and beg the recipient to send the money back.

In reality, the money is often sent using a stolen credit card or compromised account. If you send the money back, the scammer will quickly transfer it to an outside account. When the owner of the compromised account or credit card reports the fraud, the payment app may withdraw the stolen funds from your account balance and return it to the original victim—leaving you in the red.

What to do if a stranger sends you money

If you receive an unexpected money transfer, don't return the funds—even if the request seems genuine. Instead, ask the sender to cancel the transaction. If they're unable or refuse to do so, contact the app's customer support team, explain the situation and ask them to cancel the transaction on their end.

7Tech support scams

Tech support scams can put both your personal data and your finances at risk. In some cases, scammers use alarming pop-up messages or ads designed to frighten you into installing fake antivirus software. In others, they may contact you directly, claiming to represent a well-known technology company and warning you of a problem with your computer.

Under the guise of helping, they may ask you to install software that allows them to control your device. They might also request access to your online bank accounts or demand payment to fix a nonexistent tech issue.

To protect yourself from tech support scams, don't pay for or accept unsolicited tech support. Never grant computer access to your computer unless you initiated the request with a trusted provider. As a best practice, always use legitimate antivirus software, and avoid opening suspicious email attachments or clicking suspicious links or pop-ups.

8Online shopping scams

While online shopping scams have been around for years, scammers have begun using AI, social media and even stolen influencer content to appear more convincing.

In traditional online shopping scams, criminals create fake product listings to steal money or harvest sensitive information, such as credit card numbers. They may promote heavily discounted luxury or designer items on websites that closely resemble legitimate brands.

More recently, scammers have begun promoting products on social media platforms, using AI-generated images or stolen influencer testimonial videos to make their listings appear legitimate. However, the products they're selling may never arrive—and if they do, they often look very different from what was advertised.

To protect yourself, use caution when shopping online. If you're purchasing items at a deep discount, verify that the website URL is legitimate. For unfamiliar brands or retailers, take time to research the company and read customer reviews before making a purchase.

9Romance scams

Romance scams have increased significantly in recent years, with an estimated $10 billion lost annually, according to the FBI. These schemes are often highly convincing, and the individuals behind them are often skilled at building trust and manipulating emotions.

Romance scammers typically create fake profiles on dating apps, social media platforms and messaging apps. While they may adopt a variety of personas—like an attractive stranger who's interested in a serious relationship—many pose as:

• Americans living or working abroad
• Members of the US military
• Celebrities or public figures
• Individuals looking for a relationship

They often use stolen photos or AI-generated videos to appear legitime. They may spend days, weeks or even months building a relationship before attempting to defraud their target.

They may request their victim to send money via wire transfer, cryptocurrency or gift cards for a variety of reasons, including to pay for:

• Flights or other travel expenses
• Emergency medical costs
• Visa issues

To protect yourself from romance scams, exercise caution when communicating with someone you've met online—especially if the interaction was unsolicited or the relationship progresses quickly. If someone you haven't met in person asks for money, treat it as a major red flag.

Avoid sending funds to anyone you can't independently verify, especially if you're being pressured to act quickly or keep the request a secret.

10Classified-ad scams

Many popular social media sites function as online marketplaces where individuals can advertise, buy and sell a variety of goods and services—including rental properties and job opportunities. While these sites are convenient to use, they're also a common target for fraud.

Scammers may create fake listings or pose as someone seeking a roommate with the goal of convincing renters to send a security deposit for a property that doesn't exist.

Online job scams are another common form of fraud found on marketplace sites. Fraudsters may pose as employers and request payment for background checks, training or equipment. In many cases, they'll extend an offer without a legitimate interview process.

How to protect yourself

If you're searching for a new apartment, always ask to view the rental unit in person before sharing personal information or sending payment. Be cautious of listings that seem too good to be true—especially if the landlord won't allow you to view the unit before applying.

If you're looking for a job, research the employer, avoid paying any upfront fees and ask detailed questions about the role and the hiring process. Legitimate employers won't ask you to pay for your own background check or major equipment like a computer. Likewise, most companies won't extend a job offer without some form of a face-to-face interview, whether in person or over a video call.

The bottom line

As fraudsters adapt their tactics to new technologies and trends, even savvy consumers can be caught off guard. The best defense is a healthy level of skepticism. Pause before you respond, verify unexpected requests and stay informed using resources like the Federal Trade Commission's consumer advice page.

Small habits can go a long way in protecting your finances—and sharing these tips with loved ones can help protect them too.