Financial scams used to be fairly easy to detect. They often arrived as poorly written emails, suspicious phone calls or offers that seemed too good to be true.
A lot has changed in the past few years.
Financial scams have become more sophisticated, more targeted and more emotionally convincing. Adults age 60 and older reported approximately $2.4 billion in fraud losses during 2024, up dramatically from roughly $600 million just four years earlier. According to the Federal Trade Commission (FTC), older adults are significantly more likely than younger individuals to report six-figure fraud losses.¹
What is so striking about the current fraud landscape is that many victims are intelligent, successful individuals who are mentally sharp.
Technological sophistication is a key reason why more fraud is breaking through. Scammers increasingly use social media, text messages, email, phone calls and even artificial intelligence to create interactions that appear authentic. They may spend weeks or months building trust or a personal connection before introducing a financial request. Tax scams frequently involve callers posing as government officials and demanding immediate action. And impersonation scams may involve a supposed grandchild in distress, a fake attorney handling an emergency or someone claiming to represent a trusted institution.
Earlier this year, the FTC warned of a surge in tax-related scams involving callers impersonating IRS agents or fabricated “tax resolution departments.” Many victims reported that callers already possessed partial Social Security numbers, home addresses or other personal details obtained through prior data breaches or online sources, lending false credibility to the scheme. The victim is told they must act immediately, creating emotional urgency.
The IRS has issued similar warnings recently. In its 2026 “Dirty Dozen” scam alert, the agency noted a rise in phishing emails, text-message scams (“smishing”) and even AI-enabled robocalls using spoofed caller IDs to imitate legitimate IRS communications. The IRS reiterated that it generally initiates contact by traditional mail first and does not demand immediate payment through threatening phone calls, text messages or social media outreach.
The common thread in all these scams is emotional urgency. Scammers want individuals to act before they have time to verify information, consult a trusted advisor or think critically about the situation. They understand that emotional decision-making can temporarily override even the best instincts, which is why one of the most effective defenses is also one of the simplest: slow down.
A first layer of defense is to establish a verification process for your family. Before transferring money, sharing sensitive information or responding to an unexpected request, consider confirming the situation through a known phone number or trusted contact. Having open conversations about common scams can also help family members recognize warning signs before a problem occurs. Just as importantly, discussing these risks in advance makes it more comfortable for parents, grandparents or other relatives to ask questions when something feels unusual.
Some families may also benefit from establishing trusted contacts or advisors who can serve as an additional layer of oversight. Financial institutions increasingly offer trusted contact designations that allow firms to reach a designated individual if suspicious activity or concerns arise. These arrangements do not grant control over accounts, but they can create an important safeguard during periods of confusion, illness or potential exploitation.
Protecting against fraud also requires attention to basic security practices. Never share sensitive financial information over the phone or email unless you initiated the contact, and avoid clicking links from unfamiliar emails or text messages. Strong, unique passwords, multi-factor authentication, software updates and regular monitoring of bank, brokerage and credit card activity remain important safeguards. Physical security matters as well. Sensitive financial documents should be stored securely and kept out of reach of visitors, contractors or others who may have access to your home.
Process, Not Paranoia
Given the fast pace of technological innovation, the reality is that no one can stay ahead of every single new scam. Fraud tactics will continue to grow, and criminals will continue searching for new ways to exploit technology and human behavior. Artificial intelligence will likely make future scams even more convincing, allowing fraudsters to imitate voices, generate realistic messages and create increasingly believable scenarios.
While you cannot stop the evolution of these sophisticated tactics, you are not entirely powerless. What you can control is your response.
If you believe you or a family member has been targeted, act quickly. Contact your financial institutions immediately, change passwords and secure any accounts that may have been compromised. Suspicious activity should also be reported to local authorities, the FTC or the FBI’s Internet Crime Complaint Center. And inform your financial advisor, so your broader accounts and financial plan can be reviewed for additional risks.
It is not necessary to become suspicious of every phone call, email or online interaction. It is necessary, however, to establish a plan for what to do when something does not feel right. Taking a pause, verifying information independently and involving trusted advisors before acting can go a long way toward protecting both your finances and your peace of mind.
Like many areas of financial planning, preparation matters most before it’s needed. The families that invest time in creating clear communication channels, trusted verification processes and a coordinated support network are often best positioned to protect not only their assets, but also the confidence and peace of mind that those assets are intended to provide.
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IMPORTANT DISCLOSURES
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, information presented in this presentation is believed to be factual and up to date, but Newport Capital Group, LLC does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.
This presentation includes forward-looking statements and opinions, including descriptions of anticipated market changes and expectations of future activity. Forward-looking statements and opinions are inherently uncertain, and actual events or results may differ materially from those reflected in the forward-looking statements. In addition, all expressions of opinion are subject to change without notice in reaction to shifting market conditions. Therefore, undue reliance should not be placed on such forward-looking statements and opinions.