Protecting your financial life is becoming more challenging as scams become increasingly convincing.

Many of today’s scams aren’t necessarily new. What’s changed is the technology behind them. Criminals can use artificial intelligence (AI) to imitate voices, create personalized messages, and build websites that closely resemble those of legitimate financial institutions. They can also impersonate banks, investment professionals, and government agencies.

The Securities and Exchange Commission (SEC) has warned investors that fraudsters may even purchase online advertisements using the names of legitimate investment firms, directing people to fake websites designed to steal login credentials and verification codes. Scammers may also use cloned voices, altered images, and deepfake videos to make impersonation attempts more believable.

As these tactics become more sophisticated, how can you help protect yourself?

One of the most important defenses may be surprisingly simple: slow down and verify before taking action.

Rule #1: Don’t Move Money Based on an Unexpected Request

A financial scam may begin with an alarming phone call, text message, or email.

Someone claiming to represent your bank, brokerage firm, or another trusted institution tells you there’s suspicious activity in your account. They may insist your assets need to be moved immediately to a “safe” or “protected” account.

Scammers often use fear and urgency to pressure you into acting before you have time to question the request or verify its legitimacy. What sounds like an emergency may actually be an attempt to gain access to your money.

That sense of urgency should be a warning sign.

If someone unexpectedly tells you to transfer money to protect it, don’t act on their instructions. End the conversation and contact your financial institution directly using a phone number or website you already know is legitimate.

Taking a few extra minutes to verify the request through a trusted source can help you avoid making a financial decision based on pressure or fear.

Rule #2: Don’t Share Passwords or Verification Codes

Protecting your money also means protecting access to your financial accounts.

Multi-factor authentication can add an important layer of security, but scammers may try to convince you to provide the very code designed to protect your account.

For example, someone impersonating a financial institution might ask for the six-digit code that was just sent to your phone, claiming they need it to “verify your identity.”

Don’t provide it.

Treat these codes like passwords. They are intended for your use only and should not be shared with someone calling, texting, or emailing you.

Rule #3: Don’t Assume Something Familiar Is Legitimate

Unfortunately, even familiar names, numbers, and voices aren’t always reliable signs of legitimacy.

Scammers can make a call appear to come from a familiar phone number, create websites that resemble those of legitimate organizations, or use AI to imitate someone’s voice.

The SEC has cautioned investors that fraudsters may impersonate investment professionals and firms using tools such as cloned voices, altered images, and AI-generated content.

These tactics make it increasingly important to look beyond appearances.

If a family member unexpectedly calls asking for money, consider hanging up and calling them back using a number you already have. Families may also want to establish a simple verification word or question for financial emergencies.

Similarly, instead of clicking an unfamiliar or unexpected link to access a financial account, use the institution’s official app or a website address you’ve independently verified.

Rule #4: Independently Verify Before Taking Action

When someone claims to represent a financial institution, investment professional, or government agency, it is important to confirm you’re communicating with the right person before sharing sensitive information.

For example, fraudsters may use the name and credentials of an actual investment professional to appear legitimate.

If someone claims to be your financial advisor, contact the advisor or firm through an independently verified phone number.

If someone claims to represent a government agency and requests payment or financial information, contact the agency directly through its official website.

Remember, a legitimate name or professional credential doesn’t necessarily mean the person contacting you is who they claim to be.

Slow Down and Focus on What You Can Control

You don’t have to recognize every new scam tactic to take meaningful steps to protect yourself.

Before transferring money, sharing sensitive information, or clicking an unexpected link, consider asking yourself three questions:

• Was I expecting this request?
• Am I being pressured to act immediately?
• Have I independently verified who I’m communicating with?

Technology will continue to evolve, and so will financial scams. While no precaution can eliminate the risk of fraud, taking time to question unexpected requests and confirm their legitimacy can help reduce your risk and protect your finances.

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