Unfortunately, financial scams and identity theft can happen to anyone—and they’re getting more sophisticated every year. According to the Federal Trade Commission, consumers reported losing over $12.5 billion to fraud in 2024, a staggering 25% increase from the prior year. That trend shows no signs of slowing, which is why it’s more important than ever to know what scammers are after, how they operate, and the warning signs that something isn’t right.

Here’s a practical guide to help you protect yourself, your money, and your peace of mind.

Who Are the Scammers?

Fraudsters don’t always look like strangers in dark hoodies. They can pose as government officials, tech support agents, or even someone you know. Their goal is the same: get access to your personal information or your money.

• Identity thieves: Steal personal details like Social Security numbers or account logins to commit fraud.
• Scammers: Use persuasion, fear, or impersonation to trick you into sending money or sharing sensitive details.

What Do They Want?

Scammers target both your identity and your financial assets, including:

• Social Security numbers, passports, or driver’s licenses
• Bank account and credit card numbers
• Passwords and security answers
• Names, addresses, phone numbers, and emails
• Birthdates of you or family members
• Life details (like hobbies, alma maters, or travel plans) that help them guess passwords or security questions

How Do They Get It?

Fraudsters are creative, and they’ll use any channel available:

• Phishing emails and fake websites designed to capture your login info
• Malware or spyware that infects your devices
• Impersonation scams, pretending to be someone you know or trust
• Phone calls, texts, or letters claiming to be from government agencies, banks, or even charities
• Social engineering, where they manipulate emotions like fear, urgency, or even friendliness to get you to act quickly.

Red Flags to Watch For

Keep an eye out for these warning signs:

1. Offers that seem too good to be true
2. Strangers who suddenly want to be your online best friend
3. Odd messages from someone you know (their account may be hacked)
4. Unsolicited calls or emails from “authorities” demanding money or personal info
5. High-pressure tactics urging you to act immediately
6. Weak or reused passwords on important accounts
7. Oversharing personal information online or on social media
8. Missing or inconsistent bank or credit card statements
9. Being contacted when you’re vulnerable—grieving, ill, or distracted
10. That gut feeling something just doesn’t seem right

How to Protect Yourself

Online Safety

• Keep your devices updated with the latest security patches and antivirus software
• Back up important files regularly
• Use strong, unique passwords and enable two-factor authentication
• Be cautious with links and attachments, especially from unfamiliar senders
• Lock down your social media privacy settings
• Avoid logging into sensitive accounts on public WiFi

Phone Safety

• Hang up on suspicious or unexpected callers
• Never share personal or financial info over the phone
• Contact companies directly using verified numbers if you’re unsure
• Report scam calls to the FTC or local authorities

Credit and Records Monitoring

• Review your financial statements regularly for unusual activity
• Follow up on missing statements right away
• Check your credit reports for free at AnnualCreditReport.com
• Consider placing a credit freeze if you rarely apply for new credit
• Update passwords immediately if you suspect a breach

Personal Security

• Shred documents with personal information before tossing them
• Keep wallets, purses, and mail secure
• Provide your Social Security number only when absolutely necessary
• Stay alert when using ATMs and look for signs of tampering

If Fraud Happens, Act Quickly

Speed matters when it comes to minimizing damage. If you suspect you’ve been targeted:

• Change passwords immediately for any affected accounts
• Contact your bank or credit card company to secure your accounts
• Report tax-related scams to the IRS, and other fraud to the FTC
• Alert your financial advisor so they can help you assess risks and take protective steps

Stay One Step Ahead

Scammers are constantly coming up with new tactics, but staying informed and cautious goes a long way. Simple habits—like verifying who’s contacting you, using strong passwords, and regularly checking your accounts—can make the difference between staying safe and becoming a statistic.

If you have questions about how to protect your personal or financial information, Navalign Wealth Partners is here to help. We can walk you through practical steps to safeguard your finances and give you peace of mind if something feels off.