6 Scams Targeting Your Wallet and How To Protect Your Money, According to Fidelity

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Last year, Americans reported losing more than $12.5 billion to fraud, according to the Federal Trade Commission (FTC). Consumers reported losing the most to investment scams, followed by imposter scams. The biggest losses resulted from scams that started with a phone call or on social media. 

According to Fidelity, here are the biggest scams targeting your wallet and how to protect yourself.

Imposter Scam

An imposter scam is a type of fraud in which a scammer pretends to be a trustworthy person or organization, only to trick you into sending money or disclosing personal information. Losses from imposter scams totaled $789 million in 2024, according to the FTC.

An FTC report also shows a more than fourfold increase since 2020 in reports from older adults who lost $10,000 or more, and sometimes even their entire life savings, to scammers.

Here’s how to protect yourself, according to Fidelity:

• Ignore unexpected calls, texts or emails that ask for personal details.
• Contact your bank or financial institution directly through its official website or number.
• Never give out or “confirm” sensitive information.
• Don’t read or type in security codes unless you initiated the request with the company’s official line.
• Only enter security codes when signing in through the company’s verified app or website.

Remote Access Scam

A remote access scam is an impersonation scam in which fraudsters trick you into granting them remote access to your computer, allowing them to steal your personal or financial information. Sometimes, they may even ask you to pay a fee to restore access to your computer or data.

Earlier this year, Malwarebytes reported that a fake Social Security statement email was tricking users into installing a remote access tool called ScreenConnect. The trickster’s primary goal was to gain control of your computer, steal sensitive personal or financial data, and commit financial fraud.

Here’s how to protect yourself, according to Fidelity:

• Never give remote access, passwords, or security codes to unsolicited callers. Only use a trusted resource you’ve contacted yourself.
• Avoid clicking links, pop-ups or attachments from unknown senders. Type known website URLs directly into your browser.
• Hang up if someone asks you to download software or grant remote access. Legitimate companies won’t request this.
• Be cautious of callers urging you to keep the conversation secret.
• Keep your security software up to date and run scans if any issues arise. Only seek support from trusted providers.
• Back up your data often so you can restore your system if needed.
• Strengthen account protection with high-level security options and current contact information.

Confidence/Romance Scams

When someone believes they’re in a relationship, romantic or otherwise, they’re more likely to send money, personal information or financial information. According to the FBI’s Internet Crime Report, confidence and romance scams resulted in 7,626 victims over 60 years old with a total loss of $389 million in 2024.

Here’s how to protect yourself, according to Fidelity:

• Don’t send money or gifts to someone you haven’t met in person.
• Watch for red flags: fast declarations of love, attempts to isolate you, requests for money or claims of working far away.
• Take your time, ask questions and notice inconsistent answers.
• Discuss the new relationship with trusted family or friends and consider their concerns.
• If you’ve been targeted, report it to the FBI’s Internet Crime Complaint Center and your local FBI office.

Charity Fraud

A fake charity scam is a scheme in which impostors solicit donations from nonexistent charities or misrepresent causes, sometimes by impersonating real charities. Last year, a TikToker solicited nearly $1 million in donations for a nonexistent charity, WHNT reported. Followers sent money to her Venmo, PayPal and CashApp accounts over three years, which were deposited into her personal bank accounts.

Here’s how to protect yourself, according to Fidelity:

• Research charities before donating using trusted sources like the BBB Wise Giving Alliance, Charity Navigator, CharityWatch or GuideStar.
• Go directly to official charity websites by typing the URL into your browser.

Social Media/Investment Scams

The FTC highlighted two big scams — investment fraud and online shopping scams. They both advertise deals that are too good to be true, and these typically begin on social media. Online shopping scams were the second most commonly reported, and investment-related scams were fourth on the list.

Here’s how to protect yourself, according to Fidelity:

• Be wary of unsolicited investment offers.
• Watch for scammers who try to move the conversation off the original platform.
• Avoid anyone promising high returns with no risk. If it sounds too good to be true, it is.
• Verify emails claiming to be from investment companies by contacting the company directly, rather than clicking on links.
• Don’t follow ads. Look up the company’s official website yourself.
• Research unfamiliar companies by searching their name with terms like “scam” or “complaints.”
• If you’re a victim of an online or social media scam, file a report with the FBI’s Internet Crime Complaint Center and contact your local FBI office.

Tax Refund Fraud

Tax refund fraud is a form of identity theft in which the scammer uses your name and Social Security number to file fake electronic tax returns and receive refunds by mail. 

The FTC recently reported a new IRS imposter scam targeting college students and staff, which could be used to gain access to your tax refund. In this scam, criminals are sending emails asking you to click a link and submit a form to claim your refund. When you click the link and fill out the form with your personal information, scammers can use or sell this information to others.

Here’s how to protect yourself, according to Fidelity:

• File your tax return early to reduce the chance of someone filing fraudulently in your name.
• If your return is rejected due to a duplicate filing, submit IRS Form 14039 (Identity Theft Affidavit).
• The IRS will only contact you by mail, never by phone, text or email.
• Ignore calls, texts or emails claiming to be from the IRS.
• Use IRS Identity Theft Central for guidance, and consider an Identity Protection PIN to protect your Social Security number.
• Check your state’s identity theft resources.
• Keep filing and paying your taxes. If needed, submit a paper return with Form 14039 attached.

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