By Guest commentary Monday, September 22nd, 2025

By Sarah Reznick

As a financial advisor, my work typically focuses on helping clients grow their wealth through saving, investing and planning for the future. But just as important as building wealth is protecting it. No one wants to spend a lifetime working hard, only to see their financial security drained away by a scammer. Unfortunately, fraud is evolving rapidly, and criminals are deploying increasingly sophisticated tactics to separate people from their money.

That’s why staying informed and vigilant is essential. My job is not only to help clients make smart investment decisions, but also to guide them in protecting what they’ve built. The fraud landscape in 2025 is particularly concerning: scammers are exploiting new technologies and the trust people place in institutions to carry out convincing schemes. Understanding how these scams work is one of the most effective ways to avoid becoming a victim.

Here are five types of fraud that are emerging this year, along with tips to help safeguard yourself and your assets.

ONE-TIME PASSWORD SCAMS

Many of us are familiar with one-time passcodes (OTPs), those temporary codes texted to your phone to verify your identity when logging into a financial account. OTPs add a layer of security, but criminals are finding ways to intercept or trick you into giving them up. If you ever receive a passcode that you didn’t request, contact the issuing institution directly to confirm the message is valid. And never share a code with anyone who contacts you claiming to be from your financial institution. A legitimate representative will never ask for it.

INVESTMENT SCAMS

The promise of quick profits has always lured victims into investment fraud, but in 2025, these schemes have become more creative. Some involve cryptocurrency, where fraudsters spend weeks or months building trust with victims before convincing them to put money into fake crypto platforms. Others involve so-called “gold bar scams,” where people are tricked into withdrawing their money from banks and handing it over to the fraudster in physical gold. Then there are “investment club” scams, where a group is persuaded to buy shares in a little-known stock. Once the price rises, the scammer cashes out, leaving everyone else with losses. The red flags to watch for are promises of guaranteed returns, pressure to act quickly and vague or confusing details.

FINANCIAL INSTITUITION IMPERSONATION

Fraudsters know that people tend to trust messages from their banks or brokerage firms, so they’re increasingly impersonating these institutions. You may get a text, call or email claiming there’s suspicious activity on your account, urging you to verify transactions or move your money to a “secure” account. In reality, the money is being transferred straight to the scammer. Always remember: financial institutions do not ask for sensitive login details or request that you transfer money elsewhere. If in doubt, hang up and call the official customer service number on your account statement.

IMPOSTER SCAMS

Not all impersonators pretend to be from banks. Some pose as government officials, employers or even trusted service providers. In recent months, there’s been a rise in scams involving fake IRS agents threatening legal action over unpaid taxes, or fraudsters claiming to be from the Social Security Administration, warning people that their identity has been stolen. Others send texts that appear to be from the U.S. Postal Service, complete with a link to “track” a package. In reality, it’s a phishing attempt to steal your information. The key is to be skeptical of any unexpected request for personal details or payments.

AI-DRIVEN FRAUD

Artificial intelligence is giving scammers an especially powerful new tool. Voice cloning technology allows them to mimic the voice of someone you know, such as a family member, asking for money in an emergency. AI chatbots are fueling more believable online romance scams. Deepfake videos can even make it look like a trusted colleague or public figure is asking you to transfer funds. If a request seems strange, don’t rely on voice or video to verify identity. Confirm it independently, such as by calling a loved one back at their known number.

How to stay safe

All of these scams share common tactics: unsolicited messages, pressure to act quickly and requests for sensitive information. Protect yourself by slowing down and verifying before you respond. Don’t click on links or respond to texts you weren’t expecting. Monitor your financial accounts regularly. Use strong, unique passwords along with two-factor authentication whenever possible.

As I tell my clients, protecting your wealth is just as important as building it. As fraudsters become more sophisticated, your best defense is vigilance. Stay informed about the latest scams, take proactive steps to secure your accounts, and talk to your financial advisor if you have questions about how to protect your assets and information.

Sarah Reznick is the founder of the financial advisory firm Sherfina Advisors in Newbury Park. A financial advisor for over 12 years, she offers personalized financial advice and strategies to individuals, families and businesses.