Protect Your Nest Egg: The Most Dangerous Scams Targeting Consumers in Early 2026
by Chris Brown, Ph.D., MBA, CFP® and Ron A. Rhoades, JD, CFP®
Imagine receiving a phone call from your grandchild, sobbing and pleading for help. The voice is unmistakably theirs – the same inflection, the same familiar way they say “Grandma” or “Grandpa.” They tell you there has been in an accident and that someone is hurt, or that they’re in legal trouble and desperately need money to avoid jail. Your heart races, your protective instincts kick in, and you’re ready to do whatever it takes to help.
But here’s the terrifying truth: that voice isn’t your grandchild at all. It’s a criminal using artificial intelligence to clone your loved one’s voice from a three-second clip pulled from social media.
Welcome to the new frontier of financial fraud in 2026 – and it’s more sophisticated, more convincing, and more devastating than anything we’ve seen before.
The Staggering Toll of Financial Fraud
The numbers are sobering. According to the Federal Trade Commission’s latest report to Congress, scams reported by adults age 60 and older reached $2.4 billion in 2024 – a 26% increase from the previous year and a staggering 300% increase from 2020.[i] But because most fraud goes unreported, the FTC estimates actual losses experienced by older adults may be as high as $81.5 billion annually.[ii] Even more alarming, the FBI’s Internet Crime Complaint Center reports that Americans lost a record $16.6 billion to digital scammers last year, with seniors accounting for roughly $5 billion of those losses.[iii]
What’s driving this explosion? The scammers have gotten smarter, their tools more powerful, and their tactics more psychologically manipulative. Let’s examine the most prevalent threats you need to know about.
AI Voice Cloning and Deepfakes: When Seeing and Hearing Isn’t Believing
The scenario described above isn’t science fiction; it’s happening right now. Global losses from deepfake-enabled fraud exceeded $200 million in just the first quarter of 2025 alone.[iv] Modern AI can clone a person’s voice with 85% accuracy using just three to five seconds of audio, and scammers are harvesting these voice samples from social media videos, voicemails, and public recordings.
These “grandparent scams” are particularly devastating because they exploit our deepest emotional vulnerabilities. When you hear what sounds exactly like your loved one in distress, rational thinking often takes a backseat to the overwhelming urge to help. AI voice fraud attempts were up an astounding 1,300% in 2025, with criminals impersonating family members, executives, and government officials.[v]
How to protect yourself:
- Establish a family “safe word” or code phrase that only real family members would know – something that wouldn’t appear on social media.
- If you receive an urgent call claiming to be from a loved one, tell them you will call back at a number you know is genuine.
- Never send money based solely on a phone call, no matter who it is, or how convincing the voice sounds.
The “Phantom Hacker” Scam: A Multi-Phase Attack
New York Attorney General Letitia James recently issued a consumer alert about a sophisticated three-phase scam that has stolen over $1 billion from victims near or at retirement age since 2024.[vi] Here’s how it works:
Phase One: You receive a text, call, email, or pop-up claiming your account has been hacked. You’re instructed to contact a “customer support” number, where a scammer convinces you to download software that gives them remote access to your computer.
Phase Two: A new scammer calls, claiming to be from your bank. They tell you a “foreign hacker” has accessed your account and that you must move your money to a “safe” government account for protection.
Phase Three: To add legitimacy, yet another scammer poses as a government agency employee, sometimes sending fake letterhead to convince you the situation is real.
Throughout this process, victims are instructed never to tell anyone why they’re moving money – a classic red flag of fraud.
How to protect yourself: Legitimate businesses and government agencies will never ask you to download software, move money to “safe” accounts, or keep transactions secret. If someone claims there’s a problem with your accounts, hang up and call your financial institution directly using the number on your statement or the back of your card.
Investment Fraud: The Cryptocurrency Connection
Investment scams remain the single largest category of financial fraud targeting older adults. Cryptocurrency-related investment fraud alone cost adults age 60 and older $716 million in reported losses in 2023, and those numbers have only grown.[vii] Scammers often pose as investment professionals, promising guaranteed returns or “risk-free” opportunities – terms that should immediately raise suspicion, as no legitimate investment can guarantee returns.
Deepfake videos of celebrities and financial leaders promoting fake investments have become increasingly common, spreading rapidly on social media before platforms can remove them. The combination of familiar faces and urgent “limited-time” offers creates powerful pressure to act without proper due diligence.
How to protect yourself:
- Be extremely skeptical of any investment opportunity that promises guaranteed returns or pressures you to act quickly.
- Verify the credentials of anyone offering investment advice through FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure database.
- If you’re considering a significant investment, consult with a trusted, independent financial advisor first.
Other Scams on the Rise
Government Impersonation: Criminals pose as representatives from Social Security, the IRS, Medicare, or even the FTC itself. They may threaten arrest, claim your benefits are at risk, or demand immediate payment. Remember: legitimate government agencies will never call demanding immediate payment via gift cards, cryptocurrency, or wire transfers.
Tech Support Scams: Pop-ups claiming your computer is infected, or calls from people posing as Microsoft or Apple support, cost victims over $1.4 billion in 2024.viii Never call a number from a pop-up or give anyone unsolicited remote access to your device.
Romance Scams: Criminals lurk on dating sites and social media, building emotional connections before asking for money. One recent case involved a Ghanaian national who defrauded elderly victims of over $8 million through romance schemes.ix Entire networks recruit and train people on how to connect with, develop relationships with, and then scam users of dating sites and social media.
Identity Theft: Data breaches continue to expose personal information that criminals use to open fraudulent accounts or access existing ones. Freezing your credit (for many) and regularly monitoring your credit reports remain essential protective measures.
Your Best Defense: Trusted Professional Guidance
In an era where criminals use sophisticated technology to exploit trust and fear, having a trusted financial advisor in your corner has never been more important. A fiduciary advisor – one who is legally bound to act in your best interest – can serve as a crucial safeguard against fraud. Before making any significant financial decision, especially one involving urgency or secrecy, consulting with your advisor can help you avoid costly mistakes.
If something doesn’t feel right – whether it’s an unexpected call, a too-good-to-be-true investment opportunity, or pressure to move money quickly – trust your instincts and seek professional guidance. Your financial security is too important to leave to chance in today’s increasingly dangerous landscape.
We’re Here to Help
At Scholar Financial, we believe that informed clients make better financial decisions – and that includes recognizing and avoiding fraud. If you have questions about protecting yourself from scams, concerns about a suspicious contact, or simply want to discuss strategies for safeguarding your financial future, we welcome the opportunity to speak with you. Contact us at 270-904-2728 or AdvisorInfo@ScholarFinancial.com to schedule a complimentary consultation.
About the Authors
Ron A. Rhoades, JD, CFP® is a Financial Advisor at Scholar Financial, an attorney (Member, The Florida Bar), and an Associate Professor of Finance and Co-Director of the Personal Financial Planning Program at Western Kentucky University, and a recipient of The Tamar Frankel Fiduciary Prize. He has nearly four decades of combined experience in financial advising, education, and estate planning.
Chris Brown, PhD, CFP® is a Financial Advisor at Scholar Financial, Professor of Finance and Endowed Fellow, and Chair of the Department of Finance, at Western Kentucky University’s Gordon Ford College of Business. He brings extensive expertise in financial planning, capital markets, and investment management.
Disclaimer
Scholar Financial offers its advisory services through XY Investment Solutions, LLC (“XYIS”), an SEC-Registered Investment Advisor. This article is for educational purposes only. It should not be construed as financial, legal, tax, or investment advice, nor as a recommendation to implement any specific strategy, product, or investment. Consult with a qualified financial professional before making investment decisions.
Endnotes
i. Federal Trade Commission, “Protecting Older Consumers, 2024-2025.” December 1, 2025. https://www.ftc.gov/system/files/ftc_gov/pdf/P144400-OlderAdultsReportDec2025.pdf
ii. Ibid.
iii. Federal Bureau of Investigation. ” FBI Releases Annual Internet Crime Report.” April 23, 2025. https://www.fbi.gov/news/press-releases/fbi-releases-annual-internet-crime-report#:~:text=The%20Federal%20Bureau%20of%20Investigation%27s,losses—totaling%20over%20$6.5%20billion.
iv. World Economic Forum. “Why detecting dangerous AI is key to keeping trust alive in the deepfake era.” July 7, 2025. https://www.weforum.org/stories/2025/07/why-detecting-dangerous-ai-is-key-to-keeping-trust-alive/
v. PR Newswire. “Pindrop’s 2025 VoiceIntelligence & Security Report Reveals +1,300% Surge in Deepfake Fraud.” June 12, 2025. https://www.prnewswire.com/news-releases/pindrops-2025-voice-intelligence–security-report-reveals-1-300-surge-in-deepfake-fraud-302479482.html
vi. New York State Attorney General. ”Consumer Alert:
Attorney General James Warns New Yorkers of Three-Phase Scam Targeting Seniors.” September 10, 2025. https://ag.ny.gov/press-release/2025/attorney-general-james-warns-new-yorkers-three-phase-scam-targeting-seniors
vii. Federal Bureau of Investigation. ”2023 Cryptocurrency Fraud Report Released.” September 10, 2024. https://www.fbi.gov/news/stories/2023-cryptocurrency-fraud-report-released
viii. Weisman, Steve. ”Tech Support Scams Dramatically Increasing.” Forbes.com, August 30, 2025. https://www.forbes.com/sites/steveweisman/2025/08/30/tech-support-scams-dramatically-increasing/
ix. Naadi, Thomas. ”Ghana’s Abu Trica charged over $8m scam targeting elderly Americans.” BBC.com, December 12, 2025. https://www.bbc.com/news/articles/c4g99kp897do
