How Scams Target Your Money in 2026, and How to Stop Them

Why smart people get scammed

It's tempting to think scams only work on people who aren't paying attention. That's not true.

Scams work because they're designed to get around careful thinking. Most rely on a few powerful emotions:

• Fear. Your account is compromised. You owe back taxes. A family member is in trouble. Your benefits will be cut off.
• Urgency. You have to act right now, before it's too late.
• Authority. The person claims to be from the government, your bank, Medicare, or law enforcement.
• Opportunity. A once-in-a-lifetime investment. A prize. A guaranteed return.
• Trust. The person seems friendly, knowledgeable, and helpful, sometimes for weeks or months before asking for money.

When fear and urgency kick in, careful thinking gets harder. That's the whole point. Scammers want you to act before you have time to think, check, or talk to someone.

The scams costing people the most

Investment scams

Investment scams are the biggest source of losses. The FTC reported that consumers lost over $7.9 billion to investment scams in 2025, with an average loss of more than $10,000 per person. That was about half of all reported fraud losses. The FBI counted more than $8.6 billion in investment fraud losses.

Many investment scams start on social media, dating apps, or through a "wrong number" text that turns into a friendly conversation. Over time, the scammer builds trust and introduces an investment opportunity, often involving cryptocurrency or a trading platform. Early "profits" appear on a fake website to encourage bigger deposits. When the victim tries to withdraw, they can't, or they're told to pay "fees" or "taxes" first.

Warning signs: guaranteed or unusually high returns, pressure to invest quickly, someone you've never met in person giving investment advice, requests to use cryptocurrency, and platforms you can't independently verify.

Imposter scams

Imposter scams are the most commonly reported type of fraud. The FTC received over a million reports of imposter scams in 2025, with more than $3.5 billion in losses.

Scammers pretend to be someone you trust:

• Government agencies: Social Security, the IRS, Medicare, or law enforcement
• Your bank or credit card company: often claiming fraud on your account
• Tech companies: claiming your computer has a virus
• Businesses: delivery companies, utilities, or online retailers
• Family members: claiming to be in an emergency

A common version: someone calls claiming to be from your bank's fraud department. They say your account has been compromised and you need to move your money to a "safe" account to protect it. The safe account belongs to the scammer.

Warning signs: unexpected contact, pressure to act immediately, requests to move money to protect it, requests for passwords or verification codes, and demands for payment by wire transfer, gift cards, cryptocurrency, or payment apps.

Tech support scams

The FBI reported more than $2.1 billion in losses to tech support scams in 2025. These often start with a pop-up warning on your computer, or a call claiming your device has a problem. The scammer asks for remote access to "fix" it, then uses that access to steal information or money.

Warning signs: pop-ups telling you to call a number, unsolicited calls about computer problems, and requests for remote access.

Business email compromise

This one targets businesses and individuals involved in large transactions, like real estate closings. A scammer hacks or imitates an email account and sends fake instructions to wire money to a different account. The FBI reported about $3 billion in losses in 2025.

Warning signs: last-minute changes to wiring instructions sent by email. Always confirm wiring instructions by calling a known phone number before sending money.

Texts, social media, and payment apps

How scammers reach people has shifted.

According to the FTC, text messages were the most commonly reported way scammers made first contact in 2025, when people identified a contact method. Social media, though, led to the largest total losses, with more than $2 billion reported in 2025 when social media was identified as the starting point.

A few text scams that keep showing up:

• Unpaid toll or parking notices with a link to "pay now"
• Package delivery problems asking you to confirm details or pay a fee
• Bank alerts asking you to reply or click to stop a suspicious charge
• "Wrong number" messages that turn into friendly conversations and, eventually, investment pitches

The safest habit: don't click links in unexpected texts. If you think a message might be real, go directly to the company's website or app, or call a number you already have.

Payment apps deserve extra care too. Sending money through a payment app is often like handing over cash. Once it's sent to a scammer, it can be very hard to get back. Use payment apps with people you know and trust, and be wary of anyone who asks you to pay a stranger, a "government agency," or a business through one.

Scams that target retirees and public employees

Some scams go after the specific situations retirees and public employees are in.

Medicare scams

Medicare open enrollment runs from October 15 to December 7, and scammers know it. Common tactics include calls offering "free" medical equipment or genetic testing in exchange for your Medicare number, people claiming you need a new Medicare card, and pressure to switch plans quickly.

Medicare generally won't call you uninvited to ask for your Medicare number or personal information. Guard your Medicare number like a credit card number.

Social Security scams

Scammers claim your Social Security number has been suspended or linked to a crime, or that your benefits will stop unless you pay or verify information. Social Security numbers don't get suspended, and Social Security won't threaten you or demand immediate payment.

Government benefit and pension scams

Scammers may claim to represent retirement systems or government agencies and offer to help with benefits, increase payments, or "unlock" funds for a fee. Some target people approaching retirement with offers of pension "advances" or loans against future payments that carry huge hidden costs.

For FRS members, any question about your benefits is best answered by contacting the FRS directly using contact information from its official website, not a number from an unsolicited call, text, or email.

Student loan scams

With changes to federal student loan programs, scammers have been posing as loan servicers or government agents, offering to help with forgiveness, consolidation, or avoiding wage garnishment for an upfront fee. Help with federal student loans is available for free through official channels.

Retirement and windfall scams

People who have just retired, received a DROP payout, inherited money, or sold a home are prime targets. Scammers watch for these life events. Be especially careful with unsolicited investment offers after any big financial change.

Grandparent and family emergency scams

A caller claims to be a grandchild or other family member in trouble, arrested, in an accident, stranded, and needing money right away. Often they beg you not to tell anyone. Sometimes a second person gets on the line claiming to be a lawyer or police officer.

With AI, scammers can now imitate the voice of a loved one using only a short clip from social media. The call can sound real.

How AI is changing scams

Artificial intelligence has made scams more convincing and easier to run at scale. The FBI's 2025 report counted AI-facilitated fraud as its own category for the first time.

AI helps scammers:

• Clone voices. A short audio clip can be enough to imitate someone's voice.
• Create deepfake videos. Fake video calls can impersonate family members, executives, or public figures.
• Write convincing messages. Scam emails and texts no longer have obvious spelling mistakes.
• Build fake websites and profiles that look professional and real.

The old advice to watch for bad grammar and obvious fakes doesn't work as well anymore. The best defense is the same principle that's always worked: verify through a channel you control.

The warning signs almost every scam shares

No matter how scams change, almost all of them share a few features:

1. Unexpected contact. A call, text, email, or message you didn't ask for.
2. Pressure to act now. Deadlines, threats, or limited-time offers.
3. Secrecy. Requests not to tell family, your bank, or anyone else.
4. Unusual payment methods. Gift cards, wire transfers, cryptocurrency, cash, payment apps, or cryptocurrency ATMs. Legitimate organizations rarely demand these.
5. Requests for personal information. Passwords, verification codes, Social Security numbers, Medicare numbers, or account numbers.
6. Too good to be true. Guaranteed returns, prizes you didn't enter to win, or money for nothing.

If you notice even one of these, slow down.

The habits that stop most scams

Pause

Scammers depend on urgency. The single most powerful thing you can do is stop and give yourself time. A legitimate organization will still be there in an hour, or tomorrow.

Hang up and call back

If someone calls claiming to be from your bank, Medicare, Social Security, the FRS, or any other organization, hang up. Then call the organization directly using a number you already have, from your card, a statement, or its official website. Don't use a number the caller gives you.

Never share verification codes

If someone asks you to read back a code sent to your phone, it's almost certainly a scam. Those codes are how your accounts confirm it's really you.

Never move money to "protect" it

Your bank will never ask you to move money to a new account to keep it safe. That's one of the most common and costly scams right now.

Talk to someone

Scammers try to isolate you. Talking to a family member, friend, or trusted adviser before sending money breaks the spell.

Set a family code word

Agree on a word or phrase with family members that you can use to confirm identity in an emergency call. If a caller claiming to be a loved one can't give the code word, hang up and call that person directly.

Protect your accounts

• Freeze your credit at all three bureaus to prevent new accounts in your name. It's free.
• Use strong, unique passwords and turn on two-factor authentication.
• Set up account alerts for large transactions.
• Name a trusted contact on your investment accounts, so your financial institution can reach someone if it suspects fraud or exploitation.
• Limit what you share on social media, including travel plans, family details, and voice or video clips.

What to do if you've been scammed

If you think you've been scammed, act quickly. Speed can make a difference.

1. Stop all contact with the scammer.
2. Call your bank or financial institution immediately. Ask them to stop or reverse any transactions and secure your accounts.
3. Change passwords on affected accounts, and turn on two-factor authentication.
4. Report it. File reports with the FTC at ReportFraud.ftc.gov and with the FBI's Internet Crime Complaint Center at ic3.gov. Report to local police as well.
5. Place a fraud alert or credit freeze with the credit bureaus.
6. Watch out for recovery scams. Scammers often target victims a second time, offering to recover lost money for a fee. Legitimate agencies don't charge to recover money.

If your identity has been stolen, IdentityTheft.gov provides a personal recovery plan.

And please, don't let embarrassment stop you from reporting or asking for help. Scammers are professionals. Being targeted isn't a personal failing.

Protecting parents and older relatives

If you have aging parents or relatives, a few steps can help protect them:

• Talk openly about scams. Share examples of what's going around. The more familiar people are with scams, the more likely they are to recognize one.
• Encourage them to call you before sending money or sharing information with anyone.
• Help set up protections, like credit freezes, account alerts, and trusted contacts.
• Watch for warning signs, like secretive behavior around money, new "friends" online, unusual withdrawals, or sudden interest in cryptocurrency.

What I'm not going to do

I'm not going to tell you that you'll never be targeted. Everyone is a potential target. Scammers cast wide nets.

What I will say is this. When it comes down to it, the best protection isn't knowing every scam. It's having a few habits you follow every time: pause, verify through a number you trust, and talk to someone before any money moves.

A second set of eyes

One of the quiet benefits of having a trusted financial adviser is having someone to call before you act. When an unexpected opportunity, a threatening call, or an urgent request comes up, it helps to talk it through with someone who knows your finances and has nothing to gain from rushing you.

That's part of how I work with clients. Before any big money decision, especially after a retirement, a DROP payout, or an inheritance, you have someone to check in with. We'll also make sure your accounts have the right protections in place, like trusted contacts and credit freezes.

I work as a fiduciary, which means I'm required to act in your best interest.

When something feels urgent, that's the moment to slow down.

Frequently asked questions

How much money did Americans lose to scams in 2025?

The FTC reported a record $15.9 billion in fraud losses in 2025, up from $12.5 billion in 2024. The FBI's Internet Crime Complaint Center reported about $20.9 billion in losses, up 26%.

What is the most common scam?

Imposter scams are the most commonly reported fraud, with over a million reports to the FTC in 2025. Investment scams cause the largest total losses.

Who is most targeted by scams?

Older adults report the largest losses. In FBI data, people 60 and older reported more than $7.7 billion in losses in 2025.

How can I tell if a call from my bank is real?

Hang up and call your bank directly using the number on your card or statement. Your bank will not ask you to move money to a new account to protect it or to share verification codes.

What should I do if I've been scammed?

Stop contact, call your bank immediately, change passwords, report the scam to ReportFraud.ftc.gov and ic3.gov, and consider a credit freeze. Be wary of anyone offering to recover your money for a fee.

How do AI scams work?

Scammers use AI to clone voices, create fake videos, and write convincing messages. A family code word and calling people back directly can help you verify who you're really talking to.

Educational content only. Not individualized investment, tax, or legal advice. Statistics are from the FTC and FBI as cited. Benowitz Wealth Management is a brand of Joy Financial Group LLC, a Florida state-registered investment adviser.

Neither Joy Financial Group LLC nor Benowitz Wealth Management is affiliated with, endorsed by, or employed by the Florida Retirement System, the Florida Division of Retirement, the State Board of Administration of Florida, MyFRS, or any government agency. FRS members may obtain free, unbiased guidance from the MyFRS Financial Guidance Line at 1-866-446-9377.