Common Financial Scams
our expert investigators have years of experience helping victims of financial fraud take meaningful action.
Millions of dollars are lost to financial scams every year — and that number continues to rise. If you’ve fallen victim to a financial scam, you are far from alone. And while many victims believe there is nothing they can do to recover their money, that simply isn’t true.
At Traceyourassets, our expert investigators have years of experience helping victims of financial fraud take meaningful action. We thoroughly investigate every case we take on, gathering all the evidence and information our clients need to pursue recovery — while working to prevent others from falling victim to similar scams in the future.
Beyond investigation, we provide a comprehensive range of resources and guides to help you recognise, avoid, and protect yourself from financial scams going forward.
Common Types of Financial and Online Scams
New scams emerge virtually every day, making awareness more important than ever. Here are some of the most prevalent cons currently in circulation.
CFD Scams
CFD (Contract for Difference) trading was once the exclusive domain of experienced, high-end traders. As markets have become more accessible, however, a far wider range of investors now trade these complex instruments — and scammers have taken notice.
A CFD is a contract that speculates on the difference in an asset’s value between the time the contract is opened and when it closes. If the price rises, the buyer pays the seller; if it falls, the seller pays the buyer. Because CFDs can be leveraged — meaning investors can bet significantly more than they deposit — unscrupulous brokers pressure inexperienced investors into highly leveraged positions, exposing them to losses they may not fully understand or anticipate.
Ponzi Schemes
Ponzi schemes have existed for decades, but they continue to evolve — making newer variations increasingly difficult to spot. The mechanics remain the same: early investors receive small payouts to create the illusion of legitimacy, while the only real money flowing in comes from new recruits. Pressure mounts on investors to contribute more and more frequently until suspicions grow, new money dries up, and the operation — along with its website and the scammers — vanishes entirely. Currently, Ponzi schemes disguised as digital currency investment opportunities are particularly widespread.
Social Media Scams
Social media scams take many forms. Common examples include:
- Prize scams — A post or message claims you’ve won a gift card or prize. Clicking the link and entering your details hands your personal and banking information directly to fraudsters.
- Gossip scams — An ad teases a celebrity story, directing you to click a link. You’re then prompted to download a software update — which installs malware on your device, giving scammers access to your accounts.
- Healthcare scams — Ads or messages on platforms like Facebook impersonate legitimate organisations such as Medicare, offering services like replacing a lost social security card — for a fee. In reality, these services are available free of charge through official channels.
Charity Scams
Charity scams exploit people’s generosity, often through cold calls, unsolicited emails, or online ads impersonating genuine charitable organisations. These scams are particularly prevalent during the holiday season. Red flags include being pressured to donate immediately, requests for payment by cash, gift card, or wire transfer, and messages thanking you for a previous donation you don’t recall making.
Always verify a charity’s legitimacy before donating — a quick check of their official website and registration status can make all the difference.
Key Points to Remember
- Financial and online scams are rising rapidly and take an ever-growing variety of forms.
- Imposter scams are the most common type, with the average victim losing approximately $500.
- Millennials are statistically the age group most likely to fall victim to a scam.
- Wire transfers are the most common payment method used in scams, with over $300 million sent via this method annually.
- Fraudulent card payments spike during the holiday season.
- Staying informed and alert to new scam types as they emerge is one of the most effective ways to stay protected.
Fallen for a Scam? Here's What to Do Next.
If a financial or online scam has left you in difficulty, you are not alone — and you are not without options. At TraceYourAssets, our team of seasoned investigators is passionate about helping fraud victims reclaim what is rightfully theirs.
We’ll thoroughly investigate your case and provide you with a comprehensive Investigation Report and personalised Action Plan — the tools you need to build a strong case against the fraudsters and pursue recovery with confidence. Get in touch today for a free consultation and let us take it from there.
How to Avoid Financial and Online Scams
- Stay informed about new and emerging scam types as they arise.
- Never click on links in emails or ads unless you are completely certain they are legitimate.
- Be mindful of what you share publicly online — avoid posting anything that includes personal information.
- Never share your card PINs, account passwords, or banking details with anyone.
- Verify the legitimacy of any charity before donating — check their official website and registration.
- Never download software from a pop-up window.
- Use strong, unique passwords for all online accounts — combining letters, numbers, and special characters — and never reuse the same password across multiple accounts.
Frequently Asked Questions
What is a tax scam?
A scammer impersonates an IRS representative and contacts their target demanding payment for overdue taxes or requesting personal information to “verify” an account. Protect yourself by working exclusively with a trusted, verified tax professional and never engaging with unsolicited tax-related calls.
What is the family emergency scam?
One of the cruellest forms of fraud, this scam involves criminals contacting parents or grandparents claiming their child or grandchild is in trouble and urgently needs money wired to them. Always verify directly with the family member in question before taking any action.
How much money is lost to internet scams each year?
Approximately $3 billion is lost to online scammers annually — a figure that continues to grow year on year.
Are fake Facebook profiles common?
Far more than most people realise. Over 80 million Facebook profiles are estimated to be fake.
Am I more likely to be targeted during the holiday season?
Yes — many types of fraud, including charity scams and payment card fraud, spike during this period. Last Black Friday, over 25% of shoppers reported falling victim to online shopping fraud, with many cases involving fake or cloned websites.
What should I do if a scammer calls me?
End the call immediately and contact your bank or the organisation the scammer was impersonating directly. Remember — your bank will never ask for your full password or card PIN. Block the number used by the scammer to prevent further contact.
How should I report a scammer?
Inform the bank or organisation the scammer was falsely representing, and report the incident to your local police department.
Which country has the most cases of identity theft?
The United States has more reported cases of identity theft than any other country in the world.
Where does the term "Ponzi scheme" originate?
The name comes from Charles Ponzi, a fraudster active in the 1920s who ran a notorious investment scam centred on US postal service coupons. He was eventually convicted and sentenced to five years in prison.
What are the red flags of a Ponzi scheme?
Key warning signs include guaranteed high returns with little or no risk, promised profits regardless of market conditions, and deliberately vague or secretive investment strategies. If any of these are present, proceed with extreme caution.
What is the difference between a Ponzi scheme and a pyramid scheme?
A Ponzi scheme typically promises high returns on an initial investment, paid using funds from new investors. A pyramid scheme, by contrast, generates returns by recruiting new participants into the scheme — with existing members profiting directly from each new recruit they bring in.