Top 5 Financial Scams and How to Avoid Them

In a recent survey from Pew Research Center, 73% of U.S. adults reported experiencing fraud attacks¹ that caused more than $50 billion in financial loss.² To avoid falling victim to these increasing scam attacks, learn about the top financial scams in 2025.

1. Pig Butchering Scams

While the term “pig butchering” is making headlines lately, the concept has been around for ages: “fattening up” a victim to get as much money from them as possible. Emotional manipulation techniques cause the victim to believe they are building a relationship with the scammer, a common tool seen in romance scams. These scams often start with what appears to be accidental contact either by text, social media messages, or dating websites. After trapping their victim with innocent messages, the scammer begins a long con of casual conversation that can last weeks or months to establish a relationship. The scammer then plays on the victim’s emotions and makes a plea for help, claiming they are in dire circumstances and need financial help. They use a similar technique in investment scams where the victim may even receive small returns or fake charts showing their investment performance. Learn more about these scams in How to Avoid Imposter Scams. 

2. Investment & Crypto Scams

The Federal Trade Commission reported that investment scams remain the biggest threat of financial loss with consumers losing about $5.7 billion in 2024.³ Scammers may pose as legitimate financial institutions or investment groups and convince the victim to pool resources on an investment opportunity. They may make false promises of high returns if they invest early. Others may offer a deal on a low-priced stock, attracting more investors to increase the value and then selling their shares before they hit a peak, leaving investors with worthless stock. Some scammers target investors who recently lost money in an investment with an offer to recover their losses. This false promise comes with a fee or deposit that the investor must pay up front along with a schedule of payments, all of which is lost to the fraudster.

Scams involving cryptocurrency are also on the rise and involve a fraudulent cryptocurrency platform mimicking actual sites. Tools like cryptocurrency ATMs and QR codes are also used to carry out an attack. Phishing or “pig butchering” techniques are often used to establish false relationships and convince victims to invest.

Before investing online, research the company and seek advice from a trusted financial advisor. Visit Investor.gov to learn more about trusted brokers, advisors, and investment products. 

3. AI-Powered Scams

Scammers use any tool available in their attacks, and the rise of artificial intelligence (AI) technology makes these attacks more believable. Using generative AI, scammers can write convincing emails and texts, create deepfake images and videos, and use AI-generated voices in their phishing attacks.

Machine learning (ML) pulls data from social media and other websites to create personalized phishing messages. These automated messages are launched across multiple channels and are more sophisticated and difficult to track. Because the messages are more sophisticated, they’re difficult to track and allow a scammer to alter its attack in real time to increase efficiency and scale. ML is used to make fake IDs or synthetic identities that combine AI-generated documents with real data, such as a stolen Social Security Number. Scammers use these fake identities to open financial accounts, secure a loan or credit card, or launder money.

4. Job Scams

A more recent scam attempt involves employment opportunities that offer flexible hours and quick, easy income. Targeting those who are seeking remote work, victims receive text messages promising guaranteed income with simple online tasks. Others may request the victim purchase equipment or a program to secure employment. Another job scam may claim that an employee at a legitimate company highly recommended the victim’s résumé. The scam may take a slow approach and even schedule interviews with the victims. Once they’ve established trust, the scammer gains personal information or financial account information by having the victim fill out a fake application. To avoid this scam, ignore any messages received from unknown contacts offering employment, especially if they sound too good to be true.

5. ATM Fraud

Scammers continue to use evolving technology to catch victims at ATMs, including skimming devices to steal card information and hidden pinhole cameras to capture PINs. More recently, Bitcoin ATMs (BTMs) are being used to steal from victims. The attack begins with a false claim, such as suspicious activity on your account, or that your money has been linked to laundering schemes. By creating a sense of urgency, the scammer directs the victim to withdraw funds and deposit them into a specific BTM. Scammers may also send a QR code to scan at a BTM to purchase digital assets or transfer funds into their crypto wallet. These transactions are irreversible and often untraceable.

How to Avoid Financial Scams

Monitor accounts and credit reports regularly and be skeptical of any communication asking you to act quickly or click links. Look up the contact information of the business in question and call the number listed on their website to confirm any requests. Report suspicious messages and fraud attacks to the company and the Federal Trade Commission (FTC). Remember that Texell will never contact you asking for account or personal information. If you have questions about your Texell account, send a secure message in Digital Banking or call or text 254.773.1604.