Recognizing Common Financial Scams

Fraud is proliferating due in part to technology opening more avenues for scammers, including websites, email, text messages, social media, and more. Although anyone from any demographic can fall victim to fraud, those who didn’t grow up with these technologies may be especially vulnerable. The increasing sophistication of scams can make it difficult to distinguish legitimate communication from financial institutions and loved ones.

The State of Fraud Today

According to the FBI’s Internet Crime Report, over $16 billion was lost to fraud in 2024,¹ highlighting the fact that older adults—and often wealthy individuals with complex finances—are disproportionately targeted.

Knowing how to recognize and respond to fraud is critical to protecting your finances.

Investment and Crypto

How it works: Scammers pose as advisors, fund managers, or even trusted contacts offering “exclusive” investment opportunities, often in crypto, real estate, or offshore funds. These schemes typically promise unusually high or “guaranteed” returns.

How to avoid it: Be skeptical of unsolicited investment pitches, especially those offering high or “guaranteed” returns, or urging you to act quickly. Always verify credentials through independent sources like FINRA’s BrokerCheck, where you can look up licensed brokers, investment advisors, and firms.

Business Email Compromise and Vendor Impersonation

How it works: Fraudsters hack or spoof the email account of a trusted vendor, family office staff member, or executive. They send fake invoices or wire instructions, often subtly altering the sender’s email address.

How to avoid it: Always verify changes to payment, even if they offer a discount for immediate payment, by calling their known phone number either from your original contact or their website.

Imposter Scams

How it works: Someone claiming to be from the IRS, FBI, your bank’s fraud department, or another authority calls, texts, or emails to verify your personal information so they can send you your tax refund or demand immediate payment, often using fear tactics.

How to avoid it: Government agencies and banks will never ask for sensitive information via text or over the phone. The IRS does not initiate communication except in the form of a letter sent through the U.S. Postal Service.

Romance Scam

How it works: These scammers tend to operate over months or even years, often initiating an online relationship and communicating solely via dating websites or over the phone. After pretending to have romantic interest and gaining your trust, they will eventually disclose a hardship with an urgent request for money or request funds to travel to see you.

How to avoid it: Be wary of relationships that escalate quickly or involve secrecy, such as asking not to tell your loved ones. Never send money to someone you haven’t met in person.

Grandparent Scam

How it works: Someone pretends to be a grandchild, relative, or lawyer saying a family member is in trouble, often needing bail, hospital fees, or emergency travel funds. The goal is to trigger panic so you act without verifying the information.

How to avoid it: Hang up and call the family member’s known number to confirm before sending any form of payment. If you cannot reach that person, call additional family members for help. Consider using a pre-agreed “family password” to confirm identity.

Holiday, Travel, and Luxury Booking Scams

How it works: Fraudsters may offer deals on large purchases that seem too good to be true or they pretend to be concierges offering exclusive vacation deals, villas, or charters, often requiring upfront wire transfers.

How to avoid it: Use reputable travel agencies or services with verified reviews. Avoid paying via wire or crypto to unknown vendors, use official, well-known websites for making purchases, and confirm bookings directly with service providers.

Charity and Disaster Relief Scams

How it works: Scammers impersonate legitimate charities during crises or disasters, asking for immediate donations.

How to avoid it: Research charities through sites like Guide Star, avoid giving under pressure or via phone solicitation before doing your own research, and never give payment information to unknown callers.

Stay Vigilant and Informed

Many of these scams rely on a sense of urgency, desperation, and people missing important details. By understanding a few best practices, you’ll be able to better protect yourself and your family.

Always Verify Wire Instructions

• Do not rely solely on email for payment or wire instructions.
• Call a known, trusted contact at the banking institution or the party requesting funds using a phone number you’ve used before—not one provided in the email to confirm the request.

Be Cautious of Urgent or Unusual Requests

• Fraudsters often create a sense of urgency to prompt quick decision, for example, offering a discount if you pay right away.
• If something seems rushed, out of your routine, or involves new payment instructions, pause and verify by calling the institution.

Watch for Red Flags in Emails

• Look for changes in email addresses and signatures (even small ones), grammatical errors, or a strange writing style.
• Be wary of and verify any request to send money to a new or unfamiliar account.

Strengthen Your Own Systems

• Use multi-factor authentication with your email login.
• Use strong, unique passwords for all online accounts.
• Keep devices up to date with the latest security patches and antivirus protection.

Addressing Financial Risks with Your Wealth Planner

Regular, structured reviews and open conversations with your team of advisors is an important part of a proactive, long-term financial protection strategy. As a trusted advisor, Glenmede can help guide next steps or connect you with the right support, should you have any suspicions or concerns regarding such risks.