6 Financial Scams to Look Out For in 2025

By now, you’ve probably heard of the grandparent scam: Victims get a phone call from someone posing as their grandchild. The imposter spins a story about being arrested or in an accident and urgently needing money for a lawyer or bail. The grandparent is tricked into sending cash—by wire or a payment app—to the con artist or an accomplice. 

Although the scam is well-known (there’s even a bittersweet movie about it called Thelma), many older people still fall prey to the hoax every year.

One reason it’s so pernicious is that, like many scams, it pushes the right emotional buttons in the target. But new technologies are making the con more persuasive. Scammers can spoof the grandchild’s phone number on caller ID. They can use artificial intelligence to mimic the grandchild’s voice: All they need is a short audio clip of the voice (which can be found in social media accounts) and readily available, AI-driven voice-cloning software.

“AI is being used to enhance a lot of scams we have seen before,” says attorney Steve Weisman, editor of Scamicide.com. “You have foreign scammers who before had issues with grammar and spelling. Now, they have text and phishing emails that are perfect. They also have voice scams—they can make it sound like whoever they want.”

To avoid the grandparent and other scams, standard precautions apply: Never click on a link or respond in any way to an unsolicited text, email, or phone call. Instead, contact the source directly—whether that’s your grandchild (or the child’s parent), your bank regarding suspicious activity in your account, an online vendor regarding your order, or a state agency saying you owe an express-lane or bridge toll. The same goes for products advertised on Facebook and other social media: If you see a tempting discount, go directly to the vendor’s website to see if it’s real.

Most importantly, says Andrew Davies, head of regulatory affairs for financial risk management company ComplyAdvantage, “keep yourself educated on current scams.” Here are a few of the latest.

Cryptocurrency Scams

With the meteoric rise of bitcoin and other cryptocurrencies, swindles “are increasing exponentially,” says Derek Kravitz, deputy editor with Consumer Reports. Scammers typically advertise “guaranteed returns” or “exclusive opportunities” on social media or websites. They convince you to transfer cryptocurrency from your digital wallet to buy another token or coin that doesn’t exist. You transfer the funds, and as soon as the transfer goes through, the scammers disappear. 

In another version, fraudsters offer free cryptocurrency if you open an account with a trading platform, Weisman says. But to get your money out, they require you to first invest some of your own money. The safer way to trade cryptocurrency assets, Kravitz says: Buy shares in a crypto-related fund that trades on the New York Stock Exchange.

Pig Butchering

For this confidence scheme, crooks create fake accounts on social media or dating platforms and lure victims into friendships or romantic relationships. In this phase of the scam, they’re “fattening up” their marks before going in for the kill. Next, they switch to Internet-based chat applications, such as WhatsApp, and gradually start coaxing their marks into making ever-larger investments in fraudulent schemes, often in cryptocurrency. Then, they disappear with the money. 

Celebrity Deepfakes

Many celebrities hawk real products ranging from spaghetti sauce to antiaging creams. But the celebs and business icons you see promoting cryptocurrencies, investment schemes, and bogus products or charities may be deepfake images or videos manipulated using AI. Elon Musk, Tom Hanks, Dolly Parton, and Johnny Depp are among those whose likenesses have been used for this kind of scam.

You can sometimes spot such deepfakes by looking for unnatural eye or body movements, facial expressions, teeth without individual outlines, or blurriness around the edges of faces. To avoid being targeted by scammers, refrain from posting on celebrity social accounts and fan sites.

Synthetic Identity Fraud

In this emerging crime, thieves steal a person’s name and/or Social Security number and combine that with other information (such as address and birth date) from other people (real or invented) to create a synthetic or “Frankenstein” identity. They use this fabricated person to apply for credit cards, bank accounts, loans, or government benefits.

If damaging information from the impostor’s activities makes it into your credit report, it could wreck your credit score. It’s also a nightmare to correct and could expose you to other types of identity fraud. 

“Unraveling identity theft can turn your whole life upside down,” Davies says. To avoid this trap, safeguard your personal information (particularly on social media), freeze your credit report, and monitor it regularly. 

Product Scams

If you see a too-good-to-be-true sale on social media, it could be from scammers who have copied a company’s website. Perhaps the web address is one character off, which you won’t notice if you click through from the ad. After the sham website collects your money, you might get a confirmation and even an order tracking number. But you will never get the product.

For example, for the past couple of years, Cobble Hill Puzzles has been getting phone calls and countless emails from people wondering where their jigsaw puzzles were, says David Manga, the Canadian company’s owner. Those buyers had responded to ads on Facebook advertising “end of year” and “clearance” sales on Cobble Hill puzzles for $4.99 each. (They usually sell for around $18.) The ad resembled the company’s website, but took buyers to https://cobblehil.shop instead of the company’s actual site at cobblehillpuzzles.com.

Manga reported the ads to Facebook and got a form letter back. But the “sponsored” ads remained. (Facebook didn’t respond to a request for comment.)

Scammers target companies with good reputations, such as Lululemon, Manga says. Cobble Hill and artificial tree maker Balsam Hill warn about the scam on their websites.

To avoid this rip-off, never follow a link you find on social media. Go to the company’s website and make sure the offer is legit. Chances are you won’t find that mouth-watering deal.

Also, when shopping online, use a credit card, which has stronger buyer protections than wire transfers or payment apps such as Zelle or Venmo.

Check Washing

Some people are afraid to pay bills electronically, but it’s actually safer than writing a check. Although check usage is way down, check fraud is way up. According to the American Bankers Association, much of it is attributed to criminal gangs that intercept checks, use chemicals to erase or wash the payee and amount, replace it with their own information, and deposit the check.

If you must use checks, be sure to use the kind that includes security features. Use indelible ink and make sure the payee and amount take up all the space available. If your checkbook doesn’t make carbon copies, take a photo of your check before sending it. Mail checks at a post office (although this isn’t foolproof), and don’t leave unopened or outgoing mail in a mailbox accessible to others. 

Also, review your bank statements regularly. Banks aren’t required to return canceled checks or provide digital copies, but if yours does, check the front and back for signs of alteration. If anything is amiss, contact your bank immediately.

Better yet, don’t write checks. “Online bill pay with FDIC-insured financial institutions is safe,” Kravitz says.