A guide to 4 fraud scams experts say are on the rise – and how to protect yourself
Editorial staff, J.P. Morgan Wealth Management
- There are many types of financial fraud to be aware of, many of which use artificial intelligence.
- Investment, relationship, imposter and gold scams all create a sense of urgency, secrecy or emotional pressure to convince people to send money.
- AI and spoofing technology can make fraudulent calls, messages and websites look more convincing than ever.
- If a request involves money or sensitive information, pause and verify it independently before you act.
Financial fraud is becoming more common and more expensive. According to the FBI, 2025 saw just over 1 million complaints and more than $21 billion in reported losses to internet scams, a 26% jump from 2024 and an average loss of nearly $21,000 per incident.
Most of these schemes rely on social engineering: that is, manipulating someone into sharing information, granting account access or sending money outright. Cyber-enabled fraud accounted for nearly 85% of the losses the FBI recorded in 2025, and phishing or spoofing – two common social engineering tactics – were the most frequently reported crime types. Americans lost $632 million tied to investment scams and $893 million tied to scams driven by artificial intelligence (AI).
AI is making some of these scams harder to spot. Fraudsters can generate convincing messages, clone voices, and fabricate images or videos to impersonate real people and organizations. Meanwhile, spoofing technology can make a call, email or website look like it's coming from a legitimate source. A familiar name, number, voice or caller ID should not be treated as proof of who's really on the other end.
Four types of fraud deserve particular attention: investment scams, romance and companionship scams, imposter scams, and gold scams. They each follow a different playbook, but they also frequently overlap. A romance scam can lead to a fraudulent investment, for example, or an imposter scam can result in your receiving instructions to buy gold to keep your funds “safe.”
“AI is making scams more convincing, but the best defense remains surprisingly simple: Slow down, verify and talk to someone you trust before moving money,” shared Dawn Davis, J.P. Morgan Wealth Management Vice President, Elder and Vulnerable Persons Lead. “Technology is one line of defense, but scammers increasingly exploit human emotions such as urgency, fear, trust and excitement. Taking a moment to pause, independently verify a request, and consult a trusted family member, advisor or financial institution can prevent significant financial loss.”
In this article, learn more about four common scams and how to protect yourself.
Investment scams
Investment scams typically promise exceptional guaranteed returns, often coupled with pressure to quickly invest. A fraudster may contact you through social media, an online ad, a messaging app, an email or an unsolicited phone call with some claim to have confidential information or access to an exclusive opportunity that is not available to the public.
To make the investment appear legitimate, scammers may create professional-looking websites, account dashboards or fabricated statements showing supposed profits. If a victim tries to withdraw money, they're often told they owe taxes, fees or an additional deposit first. Eventually, the fraudster disappears with the money.
Pump-and-dump schemes take a somewhat different approach. Fraudsters promote a stock, often through direct messages or online groups, to generate buying activity and drive up the stock price. They may claim to have inside information, impersonate a financial professional or promise that the price is about to surge. After investors buy, the fraudsters sell their own shares. The price may then fall sharply, leaving the defrauded investors with significant losses.
Guaranteed profits, claims of insider knowledge and pressure to act immediately are all red flags. Before committing money, research both the investment and the person offering it. Use FINRA’s (Financial Industry Regulatory Authority) BrokerCheck to verify an investment professional’s registration, employment history and the firm they claim to work for. Keep in mind that scammers may impersonate real professionals, so it’s a good idea to contact the person or firm directly, through independently verified information.
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Romance and companionship scams
Romance and companionship scams start with contact made online, whether on a dating site, social media, online forum, game or messaging app. Some fraudsters pursue romance; others build what looks like a close friendship instead. Either way, the goal is the same: Earn trust, then ask for money.
The scammer may message frequently, express strong feelings quickly or have a convincing excuse for why meeting in person never quite works out. Once the relationship feels real, the requests for money start, often framed as a medical emergency, a travel problem, a business setback or some other need for a short-term loan. Some scammers may also steer the victim toward an “investment opportunity.”
These scams can be especially hard to disrupt because the victim feels emotionally invested. Fraudsters sometimes even coach victims on what to say if a relative, advisor or bank questions a withdrawal, and they often ask that the relationship (and the money involved) stay secret.
A request for money from someone you have never met in person is a significant warning sign. Photos, video calls and a familiar voice can be fabricated and should not be relied on as proof of identity.
Imposter/authority figure scams
In an imposter scam, a fraudster pretends to represent a trusted authority: for example, the FBI or another law enforcement agency, a government office, a financial institution, your bank’s fraud department, or a well-known company. The contact may claim that one of your financial accounts has been compromised, your identity has been stolen or you are somehow connected to an investigation.
The fix typically requires immediate action: Transfer money to a "safe" account, share a one-time passcode, grant remote access to a device or keep the whole thing confidential. Threats of legal trouble or financial loss are used to shut down any questions.
There are also imposters who pose as a family member of the victim – specifically one who's been injured, arrested or stranded. Even if the voice sounds familiar, call that family member directly at a number you already know – or check with another trusted person – before sending anything.
Caller ID, email addresses and official-looking documents may all be spoofed. End the interaction and reach out to the person or organization directly using a number from its official website – never the contact information the caller gave you.
Gold scams
Gold scams typically pair impersonation of an authority with fear about financial security. A fraudster claims your bank account is compromised – or your assets are otherwise at risk – then instructs you to withdraw money, buy gold or other precious metals, and give the assets to a supposed investigator or courier for “safekeeping.”
These scams carry personal safety risks, too. A victim may be asked to share a home address, store metals at home or meet a stranger for a pickup. Never hand cash, jewelry or precious metals to someone you don't know, and never agree to an in-person handoff with an unknown party. Once physical assets change hands, getting them back can be very difficult or even impossible.
Scam safety checklist
There are a number of steps you can take to protect yourself and your money from scams.
Red flags to watch out for
- Be skeptical of urgency. Scammers want to prevent you from slowing down, asking questions or consulting someone else.
- Question unusual funding methods. Requests involving cryptocurrency, gift cards, gold, cash, unfamiliar accounts or couriers should raise concern.
- Watch for unusual communication patterns. An unexpected change in tone or a request that doesn’t match someone’s normal behavior may indicate impersonation.
How to protect yourself
- Pause if an opportunity sounds too good to be true. Use a "stop, challenge and protect" strategy: Stop the conversation, challenge the pressure to respond immediately and check that the claim is coming from a trusted source, and protect yourself. One way to check if a pump-and-dump scam may be in progress is to use FINRA's market data tool to see whether a stock's shares are extremely volatile – a potential warning sign.
- Be mindful of investment advice from strangers. Be wary if someone you don't know reaches out to you unexpectedly on social media or an encrypted messaging app. They may act as though the contact was accidental, build a friendly rapport and then steer the conversation toward a "guaranteed" investment opportunity. A safe response is to avoid engaging with them altogether.
- Never share sensitive information. Do not provide passwords, account numbers or one-time passcodes in response to unsolicited contact. The more personal information bad actors are able to gather about you, the more opportunities they have to commit fraud.
- Confirm payment instructions. Verify wire instructions, account changes and payment requests through a trusted, previously established channel.
- Use strong account security. Create unique passwords, enable multifactor authentication, and keep devices and security software updated.
- Use BrokerCheck before investing. Research investment professionals and firms independently. Verify that the contact information you were given matches an official source.
- Add a trusted contact person. A trusted contact gives your financial firm someone to reach out to if the firm has concerns about possible financial exploitation or is unable to reach you. A trusted contact can't view or act on your accounts – they're an additional safety measure.
- Be cautious with links and attachments. Avoid clicking unexpected links, downloading files or granting remote access to your device.
- Report suspicious activity immediately. Fast reporting may give your financial institution more time to protect remaining assets or attempt to stop a transaction.
What to do if you’ve been impacted by a scam
If you think you have been scammed, act quickly. Contact the bank, credit card company, payment app, wire transfer company or other provider used to send the money. Explain that the transaction was connected to a scam and ask whether it can be reversed. Recovery is not guaranteed, but the sooner you report what happened, the better the chance the provider may be able to help. If you work with a financial advisor, notify them as well so they can help you review your accounts and take steps to protect your other assets.
Next, secure any information or devices that may have been compromised. Change affected passwords, including for accounts where you’ve used the same password, and turn on multifactor authentication. If the scammer accessed your computer or phone, you should update your security software, run a scan and remove anything identified as a threat. You can also seek help from a trusted cybersecurity professional.
Finally, report the incident through the Federal Trade Commission (FTC) website and the FBI’s Internet Crime Complaint Center. If you shared your Social Security number or other personal information, you can report the fraud through the FTC’s IdentityTheft.gov website and get a recovery plan tailored to your situation. Additionally, keep any receipts, messages or transaction details that may help law enforcement follow up on your case.
The bottom line
When in doubt, stop, challenge and protect. A legitimate organization should not object to your taking extra time to independently confirm a request before sharing information or sending money.
An investment advisor can provide a second perspective when an opportunity, withdrawal or payment request feels unusual. Discussing the situation before transferring funds may help uncover inconsistencies that are harder to recognize when fear, urgency or emotion is involved.
A J.P. Morgan advisor can also raise concerns internally when appropriate, including to the firm’s Client Safeguarding team.
“Social engineering scams are incredibly convincing these days, and it’s becoming harder to tell what’s legitimate and what’s fraud,” said Christine Ward, J.P. Morgan’s Executive Director, Fraud Awareness & Client Solutions U.S. “We’re here to help. If you’re ever being urgently pressured to transfer funds, give us a call – we can help you pause and verify a request before funds move.”
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