October brings haunted houses and chilling stories, but most of us are more afraid of falling for a financial scam. Intelligent, financially savvy investors are still at risk, because criminals update their tactics on a constant basis to steal money and access personal information. Staying alert and aware remains your best defense. Here are some of the most common scams making the rounds today, and how to protect yourself.
AI Impersonation and Deepfake Scams
Artificial intelligence has created more complex and believable types of fraud. Scammers now use AI-generated voices or videos to mimic a friend, family member, or authority figure. The caller might sound nearly identical to someone you know, claiming they are in trouble and need money immediately. The message is often urgent, with instructions to keep the situation secret.
How to protect yourself: Think before you act on a suspicious call. Contact the person directly through a verified number or channel to confirm if it’s real. If you believe you have been targeted, report the incident to the Federal Trade Commission (FTC).[1]
IRS and Government Impersonation Scams
Scammers often pose as the IRS, Social Security Administration, or other government agencies, demanding you owe money or threatening legal action unless you pay under a set deadline through gift cards, wire transfers, or cryptocurrency.
How to protect yourself: Legitimate agencies would not pressure you into instant payment or ask for unusual payment methods. Look closely at emails and text links because typos, odd URLs, or generic greetings are common red flags. When in doubt, go directly to the agency’s official website.[2]
Tax, Charity, and Donation Scams
Scammers also prey on generosity. They tend to use fake charities, high-profile disasters, or celebrity impersonations to solicit donations. Some fraud involves misleading “advice” about tax write-offs.[3]
How to protect yourself: Before making a contribution, confirm the organization through the IRS Tax-Exempt Organization Search (TEOS) tool. Reputable nonprofits will also have transparent websites and records you can verify.
Phishing, Spoofing, and Fake Websites
One of the most common forms of fraud involves emails, texts, or calls that appear to come from a bank, online retailer, or tech support provider. Scammers will attempt to manipulate you into handing over login credentials, Social Security numbers, or financial information.
How to protect yourself: Never click links or download attachments from unsolicited messages. Type the company’s web address directly into your browser. Enabling two-factor authentication whenever possible adds another layer of security.[4]
Work-from-Home and Employment Scams
Scammers have found another opportunity to prey on people with the rise of remote work in recent years. Be cautious of job postings that promise quick money or require upfront training, supplies, or software payments. Usually, these “employers” vanish once they receive your money.
How to protect yourself: Research any company before applying or accepting a role. Legitimate companies have an online presence, reviews, and contact information.[5]
Stay Informed
By reading this article, you are already taking concrete steps to help safeguard your finances. We encourage you to stay curious. Continue to seek out news and alerts about the AI tools and sophisticated impersonation tactics that scammers use to make their attempts look and sound frighteningly real. Slowing down, verifying sources, and knowing the warning signs can help you protect yourself.
Trust your instincts and double-check before responding. Reporting suspicious activity protects you and helps prevent others from falling victim.
This information does not constitute legal advice. Prime Capital Financial and its associates do not provide legal advice. Individuals should consult with an attorney regarding the applicability of this information for their situations.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. Tax planning and preparation services are offered through Prime Capital Tax Advisory. PCIA: 6201 College Blvd., Suite 150, Overland Park, KS 66211. PCIA doing business as Prime Capital Financial | Wealth | Retirement | Wellness | Family Office | Tax Advisory.
[1] https://www.nyc.gov/site/dca/consumers/artificial-intelligence-scam-tips.page
[2] https://www.irs.gov/help/tax-scams/recognize-tax-scams-and-fraud
[3] https://www.irs.gov/newsroom/irs-beware-of-fake-charities-check-before-donating
[4] https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/spoofing-and-phishing
[5] https://choosework.ssa.gov/blog/2024-08-28-how-to-spot-a-work-from-home-scam.html
