5 Most Common Financial Scams Americans Become Victims Of

Financial scams are relatively common in the US. According to Gallup News, in 2023, 15% of American adults said that at least one member of their family became a victim of a financial scam, with 8% claiming that it happened to them personally.

However, it’s also been mentioned that such scams have a tendency to be unreported, primarily because victims don’t know whom to reach or because they feel embarrassed about falling for a fraudulent scheme.

Some celebrities, like Andy Cohen, also know what it’s like to lose their hard-earned money to scammers. The television host and producer has fallen prey to a credit card scheme, stating, “Whoever you are: I hate you, but you’re very good at your job.”

But what are some of the most widespread financial scams in the United States, and how to avoid them?

5 Financial Scams to Stay Away From in 2025

Phone Call Scams

Phone call scams, also known as vishing (voice phishing), are some of the most widespread scamming techniques that require vigilance from the potential victim. In such scams, fraudsters prey on people’s emotions with high-pressure tactics such as fear or urgency.

They pretend to be bank representatives, debt collectors, government officials, tech support, or even family members or friends. The latter is referred to as an emergency scam, where a fraudster reaches out to someone on behalf of their family or friends and asks for money.

The signs of a phone call scam are unsolicited calls, requests for personal and financial information, too-good-to-be-true offers, unprofessional language, and threats of legal action or even arrest.

Note that official channels are very unlikely to implement the above methods. When in doubt, find the phone number on an official website and call them yourself.

Email Phishing

Email phishing is one of the most popular scams in the US. It’s estimated that 3.4 billion spam emails are sent every day, which is an effective technique that affects many individuals.

One particular sign of a phishing email is that it tricks people into repealing personal information, clicking on links, or downloading malicious attachments.

Again, the signs are practically the same as with phone scams, involving a sense of urgency, unprofessional language, threats, and overly idealistic offers.

Other red flags of phishing emails are questionable email addresses, generic greetings, and suspicious attachments and links.

Romance Scams

In romance scams, fraudsters build an online relationship with the potential victim. They use messengers, social media, dating apps, or other resources.

Scammers gradually create a connection, and only then, after a few months or less, start asking the victim for money. This happens because such requests at the beginning of the relationship are too suspicious and are a clear sign that the person behind the screen is a scammer. Some, however, don’t wait and ask for financial assistance straight away.

For credibility, scammers typically fabricate stories about a medical emergency or the desire to buy plane tickets to come see their online date. And in some cases, it works.

Remember that requests for money, overly attractive social media profiles, avoiding video calls and meeting in person, and quick emotional connection signal that the person you’re hoping to build a relationship with is most likely a scammer.

Debt Collection Scams

When one doesn’t have any debts, it’s hard to fall victim to a debt collection scam. However, fraudsters know how to make you think that you owe something to them. They pose as legitimate debt collectors and require their victims to pay fake or non-existent debts.

They may also fake documents from court records and make the victim believe that the failure to pay the debt will lead to serious legal consequences.

One particular sign that gives away such a scam is threatening language. They also demand immediate payment, usually through untraceable channels, and pressure the victim to act quickly. Untraceable payment channels include cryptocurrency, gift cards, prepaid debit cards, digital wallets, and offshore bank accounts, among other things.

Home Improvement Scams

When you want to repair a house, you must work with contractors or workers that you trust. Otherwise, you risk encountering fraudsters. What they do is offer home repairs or improvement services at an attractive price and ask for an upfront payment. Of course, when the payment is made, you’ll no longer hear from them ever again.

These scams may also involve dishonest or substandard work. Fraudsters may use low-quality or fake materials, they may start a job and then fail to finish it, or even damage the exciting structure of the house.

The common red flags of home improvement scams are below-the-market prices, sometimes lack of paperwork, unverifiable contact information, and pressure tactics.

How to Avoid Financial Scams

Educate Yourself

When you know what to expect, you’re less likely to fall victim to any financial scam out there. That’s why it’s important to learn at least some red flags to stay away from unscrupulous individuals with malicious intents.

Always Verify

When someone suspicious calls, texts, or emails you, don’t quickly give in to their demands. Before this, you must verify who exactly is contacting you. The failure to do this will result in money losses and sometimes emotional distress (which is understandable).

Don’t Send Money and Avoid Sharing Your Personal Information

Scammers trick individuals for two main reasons: They either need their money or personal details. Obtaining both is better for them, of course.

That’s why you should never make any payments or share your PI unless you’re confident you’re talking to legitimate people.

Report Suspicious Activity to the Federal Trade Commission

The Federal Trade Commission is a federal agency that protects the rights of American consumers. So, if you’ve been targeted by a scammer, you can report the incident to the FTC at ReportFraud.ftc.gov.

Let’s Conclude

Financial scams are widespread all around the US. If you aren’t vigilant enough, you risk falling victim to any of the above-mentioned fraudulent tactics and the ones that weren’t mentioned here.

All scams continue to evolve, which means that to protect yourself, you must stay updated on the latest cybersecurity news.