The Evolution of Financial Fraud and How You Can Prevent It

Preparing for 2025

By Daniel Cardi

If there’s one thing we all learned in 2024, it’s this: scammers aren’t slowing down. From texts that pose as Amazon to fake job offers asking you to deposit checks, their deception is getting more creative — and more effective. In fact, the Federal Trade Commission (FTC) estimates Americans will lose more than $10 billion to fraud this year alone.

The good news? Protecting financial data doesn’t have to be complicated. With a few smart strategies and a healthy dose of skepticism, you can avoid becoming a statistic in 2025. Let’s break down what’s deceiving people, why it’s working, and what you can do about it.

Scammers Got Smarter in 2024

Last year, we saw some old tricks making a comeback. Counterfeit checks were still common — people receiving fake checks, depositing them, and being asked to forward the funds before the check bounces. These scams often target folks selling things online or applying for jobs.

Daniel Cardi

“Scammers thrive on urgency. They’ll tell you your account’s been compromised or there’s a suspicious charge on your card, hoping you’ll panic and act without thinking.”

But one thing really stood out: fraudulent text messages. Criminals sent fake texts pretending to be from retailers like Walmart or Amazon, claiming there were “suspicious charges” on your account. The goal? Get you to click a link, enter your banking info, and give them instant access to your money.

These scams are working for a reason. As a society, we use our phones for everything, and we trust them with a lot of information — from shopping to banking to ordering pizza. Scammers know this and are doubling down on texts and emails because they know we’ll respond quickly, often without a second thought.

What Scams to Expect in 2025

These tactics aren’t going anywhere. In fact, they’ll likely get more advanced. Cybercriminals are already using artificial intelligence (AI) to create more convincing fake messages. It’s only going to get harder to tell the difference between a legitimate message and a computer-generated one.

Who’s most at risk? Unfortunately, older people are still a primary target because they’re less familiar with digital tools. But anyone who’s too quick to click or too trusting can fall victim, especially as scams get more sophisticated.

For our part, the financial industry is fighting back. Many institutions, like Community Bank, are embracing AI to catch fraudulent activity faster. These systems analyze millions of transactions in real time to flag suspicious activity. But even with all the technology in the world, the best defense is still a vigilant consumer.

How You Can Protect Yourself in 2025

So what can you do to stay ahead of scammers? Luckily, the best strategies are simple and don’t require a computer science degree.

Slow down. Scammers thrive on urgency. They’ll tell you your account’s been compromised or there’s a suspicious charge on your card, hoping you’ll panic and act without thinking. Pause and look closely at the message. Does it seem real? Check the link — is it actually from a legitimate source, or is it some random string of letters and numbers? When in doubt, call your financial institution’s customer-care center directly and have them research the activity.

Change your passwords. I know — it’s inconvenient. But using old, weak passwords is like leaving your front door wide open. Make a habit of updating your passwords regularly and using different ones for different accounts. If that sounds overwhelming, get a password manager to do the hard work for you.

Use multi-factor authentication. MFA is an added layer of protection for devices and accounts — a gateway guard that says “prove it’s really you.” When you log in, you’ll need to verify your identity with a code sent to your phone or email. It’s an extra step, but it’s worth it to keep scammers out of your accounts.

Be skeptical of offers that seem too good to be true. If someone offers you a job out of the blue or says you’ve won money but need to send funds to claim it — run. Scammers love to bait people with promises that sound amazing but aren’t real.

Report fraud ASAP. If you think you’ve been scammed, don’t stay silent. Call your bank immediately. Not only can we help you secure your account, we might also be able to recover your money. In 2024, our team at Community Bank helped recover more than $235,000 on behalf of our customers who would have otherwise lost that money to scams.

The Role of AI and What’s Next

Here’s the silver lining: 2025 is shaping up to be a turning point for fraud prevention. Like I mentioned earlier, financial institutions, like Community Bank, are rolling out advanced AI systems that can adapt in real time to catch new scams as they emerge. Because these tools use machine learning to analyze millions of transactions daily, they can spot patterns that humans might miss. Any new trend will be addressed instantly, with new or updated alerts to our team.

But with every advancement in fraud prevention comes new strategies from the scammers. They’re also experimenting with AI to create fake emails, texts, and even phone calls that are more convincing than ever. This is why vigilance and skepticism will always be your best tools.

We also expect more regulations in 2025 aimed at improving cybersecurity. Businesses will need to comply with stricter rules to protect sensitive data — which is great news for consumers. But at the end of the day, personal accountability remains key.

Don’t Rush and Stay Skeptical

The main takeaway for this year? Take your time. Whether it’s a text about a suspicious charge or an email requesting urgent action, don’t rush to respond. Scammers rely on speed and panic — take that away, and you take away their power.

Remember, if something feels off, don’t hesitate to call and ask questions. By staying informed, skeptical, and proactive, you can outsmart the scammers and protect what matters most.

In short, 2025 will bring new challenges, but with the right mindset and tools, you’ll be ready.

As vice president and Corporate Security officer for Community Bank, Daniel Cardi draws on more than three decades of experience in policework, gaming investigations and security analysis to stay ahead of emerging threats and prevent financial losses for customers. He specializes in risk management, fraud prevention, and physical security, overseeing security upgrades and modifications across the bank’s branch network. He also supervises a dedicated team of corporate security investigators committed to investigating allegations of fraudulent financial activity across the bank’s footprint to foster a safer banking environment for all customers.