story by MARY FRANCES CASSIDY
Financial fraud has evolved far beyond suspicious emails and obvious red flags. Using increasingly sophisticated tactics and technology, criminals are deceiving victims at an alarming rate, compromising the personal and financial data of more than 57,000 Americans each day. In 2024, North Carolina ranked within the top 10 states for losses reported to the FBI, totaling $324 million. The most effective means of safeguarding your assets is recognizing the telltale signs of a scam, from identity theft to complex investment fraud.
Detective Jason Stewart, a seasoned financial fraud investigations expert with the Apex Police Department, has observed a marked increase in monetary losses since the COVID-19 pandemic. He’s currently managing active cases with victim losses ranging from $300,000 to over $1 million, a significant increase from a caseload that typically involved amounts in the tens of thousands of dollars. According to Stewart, asset recovery can be considerably complicated and never guaranteed, but there are steps you can take to avoid becoming a victim.
Here are some of the most common scams targeting the public, followed by practical measures you can take to reduce your risk of exposure.
Phishing/Smishing/Vishing
These scams transpire via fraudulent messages sent by email (phishing), text (smishing), or phone (vishing) to deceive the recipient into disclosing sensitive information—passwords, financial data, Social Security number, and other personal details, or for the purpose of installing malware.
The communication is disguised to appear as if originating from a trusted source such as a bank, government entity, tech support,
collection agency, or delivery service. The sender commonly uses a practice known as spoofing, to cleverly disguise the business’s name, email address or website, by subtly changing a minor, unnoticeable detail. They convince the recipient that taking the suggested action is imperative, often through means of an included, malicious link.
- Never click on a link from an unfamiliar or unsolicited source.
- Immediately hang up on individuals soliciting money or personal information over the phone.
- Block pop-ups on your web browser.
- Utilize Two-Factor Authentication or Passkey to verify identity when logging onto websites/apps.
Family Emergency Scam
The scammer calls, pretending to be a trusted individual—relative, close friend or someone in a position of authority—strongly
urging you to wire money or provide financial information due to an “emergency” (accident, illness, kidnapping, legal issue.) These criminals are becoming increasingly sophisticated, using artificial intelligence tools like voice cloning to impersonate others. They achieve this through audio clips, sourced from social media, manipulating the voice and tone of the individual “in crisis.”
- Never comply with urgent demands for payment in any form—this is a red flag!
- Hang up and attempt to contact your loved one through normal means, even if instructed to stay on the line.
- Remaining calm is key—the scammer is counting on you to panic and react out of fear.
- Limit personal information shared on social media.
Romance Scam (aka “Pig Butchering”)
The term “pig butchering” is derived from the practice of “fattening up” a victim before ultimately exploiting them for financial gain.
Manipulation usually begins on a dating platform or through an “accidental” text or email, initiated by an imposter adopting a fake persona. Never revealing their true identity or location, they build a connection with a vulnerable “target” over a significant period of time, encouraging and often resulting in romantic feelings the victim believes are mutual.
The con artist claims to be deployed in the military or working overseas, virtually unable to be contacted, ensuring only they can initiate communication. Once trust is established, requests for money begin, with the perpetrator claiming to have a business problem or personal crisis. Initially, amounts are small, increasing over time and almost always in the form of untraceable cryptocurrency or gift cards.
In another scenario, the victim is deceived into believing the individual has access to an incredible investment opportunity promising significant returns, and is tricked into investing. Some criminals will even produce a seemingly legitimate portfolio as “proof.”
Unknowing victims are also used as “money mules,” instructed to deposit illicit funds from the scammer into their personal bank accounts. They are then asked to convert the funds into cryptocurrency as a means of money laundering. These situations often result in very significant monetary losses for the victim.
Be cautious of unsolicited contact from individuals you’ve never met, seeking instant connection, unwilling or unable to meet face-to-face (in person or via video chat), or insisting on keeping the relationship a secret.
- Only accept friend requests/follow people you know and trust on social media.
- Never disclose banking information or send/accept payment from anyone you don’t know.
- Talk to a trusted friend or family member, advising them of the situation.
Online Marketplace Scam
Marketplace scams involve fraudulent transactions through online buy/sell sites such as Facebook, Instagram, TikTok, eBay, etc. Items are advertised for sale, requiring payment in advance, often via unsecured methods.
Once funds are received, the seller fails to deliver and becomes unreachable, making recovery of funds extremely difficult. They commonly operate under multiple aliases, using fake profile photos.
- Refuse seller requests to move the conversation to text or email, preventing monitoring by the marketplace.
- Ask the seller to meet you in a public place to exchange payment for merchandise.
Identity Theft and Credit Card Fraud
This continues to be the most common type of fraud, occurring as a result of loss, theft, data breaches, phishing, or skimming—illegally capturing a card’s magnetic stripe information via a hidden device at gas pumps, ATMs, or point of sale terminals. There has been a recent surge of skimming incidents within the Triangle area over the past year.
- Report lost or stolen cards.
- Carefully review banking statements for unauthorized charges.
- Monitor credit reports.
- Use the card’s tap feature for payment when you can.
- Whenever possible, use credit cards instead of debit cards, which offer a greater chance of recovering funds.
- Closely inspect sales terminals for attached skimming devices.
- Use a radio frequency identification wallet (RFID) to block remote scanning.
In the digital era, financial scammers are constantly adapting, using a sophisticated combination of technology, social engineering,
and manipulation to commit theft. Education and awareness are the most effective defenses in protecting yourself from becoming a victim.
The Federal Trade Commission offers more information about safeguarding your finances, including consumer alerts, on its website at ftc.gov. Additionally, AARP offers valuable tips at aarp.org/money/scams-fraud.
If you do become the victim of a scam, immediately contact your bank and file a police report. Don’t be embarrassed or feel ashamed. Scammers are professional criminals who employ tactics used to deceive even the most cautious individuals. Staying informed and vigilant is the key to keeping your money and data safe in 2026 and beyond.
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