The Top 5 Financial Scams You Should Know About
(and How to Protect Yourself)

In today’s rapidly evolving digital world, financial scams are more pervasive than ever. Scammers are getting more creative, employing a wide range of tactics to trick unsuspecting individuals out of their hard-earned money. Whether it’s through email, social media, phone calls, or even in person, their methods are becoming harder to detect and easier to fall for.

As your financial advisor, I feel it’s important to keep you informed about these risks. Being aware of the most common scams and knowing how to protect yourself is the first step in safeguarding your financial well-being. Below are the top five financial scams currently in
circulation and how you can shield yourself from falling victim.

1. Phishing Scams: Don’t Take the Bait
   Phishing scams are incredibly common and have been around for years, but their prevalence has only increased. These scams typically involve receiving emails, text messages, or phone calls that seem to come from legitimate organizations such as your bank, insurance company, or a well-known retailer. The communication often states that there is an issue with your account, requiring you to urgently click a link or provide personal details. Once you do so, the scammer gains access to sensitive information like passwords or credit card details.
   
   Phishing scams are particularly dangerous because they often look and feel legitimate, making
   it hard to discern a fake message from a real one. In recent times, phishing attempts have
   expanded to include more sophisticated forms like “spear-phishing,” where scammers use
   personalized information to make the attack seem more believable.
   
   How to Protect Yourself:
   
   • Pause before you act: Take a moment to assess the situation before clicking on any
     links or responding to urgent requests. Scammers use urgency to cloud your judgment.
   • Verify the source: Contact the company or institution directly using a trusted phone
     number or website to verify the legitimacy of the message.
   • Look for red flags: Phishing messages often contain small spelling or grammar
     mistakes, inconsistencies in sender information, or suspicious URLs.
   • Use security features: Enable two-factor authentication for your accounts to add an
     extra layer of security.
   
   
2. Fake Prize, Lottery, and Inheritance Scams: If It Sounds Too Good to Be True, It Probably Is
   Another scam that has taken advantage of people’s desires for good fortune is the fake prize,
   lottery, or inheritance scam. In this con, you’ll receive a message or phone call claiming that
   you’ve won a large sum of money or a valuable prize. You may even be told that a distant
   relative has left you a significant inheritance, but you’ll need to pay a fee, taxes, or some other
   processing cost to unlock your winnings.
   
   The scam might also involve being promised a portion of an inheritance if you help cover certain
   legal or processing fees upfront. The excitement of receiving an unexpected windfall can make
   victims overlook the obvious red flags. However, once you send the money, the prize or
   inheritance never materializes.
   
   How to Protect Yourself:
   
   • Be skeptical of unexpected windfalls: If you didn’t enter a contest or lottery, you
     haven’t won one. Similarly, be cautious about unexpected inheritances from relatives
     you’ve never heard of.
   • Don’t pay to receive a prize: Legitimate prizes or inheritances don’t require upfront
     payments or fees to claim. If you’re asked to pay anything to receive winnings, it’s almost
     certainly a scam.
   • Verify with a professional: If you do receive notice of an inheritance, contact a trusted
     attorney or financial advisor to ensure it’s legitimate.
   • Avoid sharing personal information: Scammers may also try to get personal details
     from you to steal your identity. Never give out your Social Security number or bank
     details in response to unsolicited prize or inheritance offers.
   
   
3. Tech Support Scams: They’re Not Here to Help
   Tech support scams are a growing problem, especially with the increasing reliance on
   technology. In this scam, you might receive a pop-up on your computer warning you of a virus,
   or someone may call claiming to be from a well-known tech company like Microsoft or Apple.
   The scammer will say that your device has been compromised and offer to fix it by gaining
   remote access to your computer or charging a fee.
   
   Once they gain remote access, the scammer can install malware, steal personal information, or
   even lock you out of your device entirely. They may also charge you for fake or unnecessary
   services.
   
   How to Protect Yourself:
   
   • Ignore unsolicited tech support calls: Companies like Microsoft and Apple do not
     proactively contact customers about tech issues. Hang up if someone calls claiming
     there’s a problem with your device.
   • Do not give remote access: Never allow anyone to remotely access your computer
     unless you initiated the contact with a trusted service provider.
   • Update your device’s security software regularly: Use reliable antivirus and security
     software to protect your computer from real threats.
   • If in doubt, disconnect: If you receive a suspicious pop-up, close your browser and
     restart your device. If you believe there’s a genuine issue, contact a trusted local
     technician.
   
   
4. Social Security Scams: Don’t Let Them Take Your Benefits
   Social Security scams continue to be a major threat, particularly for seniors. In these scams,
   fraudsters impersonate Social Security Administration (SSA) employees, telling victims that their
   Social Security number has been suspended or compromised. In other versions, they claim
   there is an issue with your benefits that needs immediate resolution.
   
   The scammer then demands that you provide personal information, like your Social Security
   number or banking details, or they may request payment to fix the issue. These scams are
   designed to create panic and pressure you into acting quickly.
   
   How to Protect Yourself:
   
   • Know the SSA’s policies: The SSA will never call you to threaten suspension of your
     benefits or request immediate payments over the phone. All official communication starts
     with a mailed letter.
   • Hang up on suspicious calls: If you receive a call from someone claiming to be from
     the SSA, hang up and report it to the Social Security Administration’s official website.
   • Don’t give out personal information: Never provide your Social Security number,
     banking information, or any other personal details over the phone unless you’re
     absolutely certain of the recipient’s legitimacy.
   
   
5. IRS and Tax Scams: The IRS Doesn’t Call to Demand Payment
   IRS and tax scams are among the most terrifying for victims because they often involve threats
   of legal action, fines, or even jail time. Scammers pose as IRS agents, claiming you owe back
   taxes and must pay immediately or face severe consequences. They often demand payment
   through wire transfers, prepaid debit cards, or gift cards—none of which are accepted by the
   IRS.
   
   Scammers are known for using official-sounding language and may even spoof the IRS’s phone
   number to appear legitimate.
   
   How to Protect Yourself:
   
   • Know how the IRS contacts you: The IRS never demands immediate payment over
     the phone. They will always send written communication first.
   • Don’t fall for threats: If someone threatens you with legal action or arrest over unpaid
     taxes, it’s likely a scam. Hang up and contact the IRS directly through their official
     website.
   • Avoid unconventional payment methods: The IRS will never request payment via gift
     cards or wire transfers. If you’re being asked to pay this way, it’s a scam.
   
   Final Thoughts: Stay Vigilant and Protect Your Wealth
   Scammers are always finding new ways to exploit vulnerabilities, and it can be hard to keep up.
   However, staying informed and aware of the most common scams can go a long way in
   protecting yourself. When in doubt, always verify the legitimacy of a request, whether it’s a call,
   email, or message claiming to be from a trusted institution. If something feels off, take your time
   and investigate before taking action.
   
   With my background in law enforcement and my interest in technology, I make it a priority to
   stay current on these types of threats. I’m here to help you identify potential scams and
   safeguard your financial well-being. If you ever receive a suspicious message or encounter a
   financial offer that doesn’t feel right, don’t hesitate to reach out to me. I’m always available to
   answer your questions and help ensure your financial security remains intact.

Avantax affiliated Financial Professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment Services℠, Member, Investment Advisory services offered through Avantax Advisory Services℠, Insurance services offered through an Avantax affiliated  insurance agency.  3200 Olympus Blvd., Suite 100, Dallas, TX  75019. 972-870-6000.

The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management® does not provide or supervise tax or accounting services, Avantax representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management® or its subsidiaries. Avantax Wealth Management® is not responsible for and does not control, adopt, or endorse any content contained on any third party website.

This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences.