New digital technologies make managing money and buying the things you need easier. But the rise in apps, digital wallets, and online shopping also is a thief’s paradise, with consumers losing billions to fraud each year.

Scammers are becoming smarter at hacking into company systems, stealing sensitive data, and using it to defraud innocent victims. Learn how to recognize common scams and protect yourself in 2025.

AI-powered fraud

Criminals are now launching phone and email campaigns using artificial intelligence to clone a person’s voice. Watch for voicemail messages from people you know or realistic-looking emails from companies you do business with.

Don’t respond to urgent money requests from someone you know, even if they say they are facing an emergency. Protect yourself by calling the person or others who know them directly to verify if the situation could be real.

Investment “Opportunities”

As cryptocurrency gains in popularity, thieves are luring people online and through social media with get-rich investment schemes. Older adults especially fall prey to these scams.

Scammers build relationships through social media, then once someone trusts them, they will offer investment advice and an opportunity. They may ask you to wire money directly to their bank account or transfer it through a website that looks like a legitimate investment company. Once you’ve wired the money, it’s hard to get it back, as they may charge high fees to withdraw the funds. The IRS reports cryptocurrency scams can add up to major losses for those who fall for the bait.

If you want to invest, call a registered financial advisor. Many credit unions also monitor members’ accounts for potential fraud. If your financial institution raises a red flag when you try to transfer a large sum of money, pause and listen to their advice. They are looking out for your best interests.

Tax Season Scams

If you receive an email or call from the IRS demanding payment for taxes, be wary. Some scammers also send fake tax refund offers so you will provide personal information. Avoid these scams by hiring a reputable tax preparer to file your returns. Mail your returns or submit them over a secure internet connection only.

Employment Scams

The Better Business Bureau says employment scams are on the rise. These could include fake online job ads and emails from recruiters. Some thieves even conduct false interviews and make an offer so you will fill out paperwork with your social security number and bank account for direct deposit. Other scams include asking potential employees to pay for training or shipping for equipment.

Just because a job ad appears on a local website or Linked In, does not make it legitimate. If you are contacted by a recruiter, visit the company website to view the job posting there. Beware of jobs promising you can make a lot of money working from home. Companies also will not ask for your personal information, such as your social security number or financial information, during the application process. And never pay money to accept a position.

Online Shopping

Online shopping carries its own risks and rewards. Stay safe by only shopping on secure websites. Look for a secure URL starting with “https” and a padlock icon in the address bar. Only use credit cards because they have better built-in fraud protections but consider shopping on sites that offer third-party payment options such as PayPal and Apple Pay where your credit card information is not shared with the retailer.

If you receive an email with a special discount offer, don’t click on any links. Open a new browser, and search for the discount on the retailer’s website.

It’s important to stay vigilant to reduce your risk of fraud. If you think you’ve been a victim of a scam, report it immediately and follow these steps. Or visit Midwest Community’s fraud center for advice on how to reduce risk in the future.