At Northstar Financial Planners, we make your financial well-being and data security our priorities. But safeguarding your assets doesn’t stop with our firm. With cybercrime on the rise, it's important to stay alert to threats you might encounter in your online interactions, whether through email, social media, or even dating apps.
Here’s a guide to help you identify today’s most prevalent scams, understand how they work, and know what to do if you’re targeted.
What Is a Scam?
A scam is a fraudulent scheme designed to trick you into sending money or sharing personal information. These schemes often appear to come from trustworthy sources and may reach you via phone, email, text, or social media. Scammers target people of all ages and backgrounds. Awareness is your best defense.
1. Romance & “Sweetheart” Scams
These scams prey on emotions. The fraudster builds an online relationship through social media or a dating app, often claiming to be working abroad or in the military. They establish trust and then ask for money due to a supposed emergency—medical bills, travel issues, or a temporary setback.
How to Protect Yourself:
Be cautious of anyone who professes love quickly or won’t meet in person.
Reverse-search profile images to check for duplicates.
Never send money or financial details to someone you’ve met only online.
Ask Yourself:
Have I met this person in real life?
Are they using urgency or an emergency to ask for money?
Have I verified their story with someone I trust?
2. Sweepstakes & Lottery Scams
You receive a call, email, or message congratulating you on winning a prize—but you need to pay a fee to claim it. These scams often ask for taxes, shipping fees, or banking details.
How to Protect Yourself:
Ask yourself if you entered a contest. If you didn’t, you didn’t win.
Legitimate contests never require payment to receive a prize.
Avoid sharing financial or personal information to claim “winnings.”
Ask Yourself:
Did I even enter this contest?
Am I being pressured to act fast or wire money?
Is this too good to be true?
3. Government Impersonators
Scammers posing as the IRS, Social Security Administration, or law enforcement often call, email, or text to demand immediate payment or threaten legal action. They may even spoof real agency phone numbers.
How to Protect Yourself:
Government agencies don’t call to demand payment or threaten arrest.
Don’t trust caller ID or click links in unsolicited messages.
Hang up and call the agency directly using a verified number.
Ask Yourself:
Did the caller make threats or demand urgent action?
Was I asked for sensitive information?
Did the call or message come out of the blue?
4. Tech Support & Refund Scams
A pop-up or phone call warns that your device is infected or your subscription needs renewing. You’re urged to grant remote access, and the scammer may install malware, steal data, or convince you to send “refunds” via wire or crypto.
How to Protect Yourself:
Don’t click on pop-up links or call unknown numbers.
Don’t give remote access to your device unless you initiated contact with a known provider.
Only buy security software from trusted sources.
Ask Yourself:
Did I give anyone access to my device?
Did they say money was erroneously deposited into my account?
Did I click on any links or navigate to a website on their instruction?
5. Real Estate Wire Fraud
During the closing process, scammers hack or spoof emails from real estate agents or title companies and send false wiring instructions for closing funds. Victims unknowingly wire large sums to fraudulent accounts.
How to Protect Yourself:
Always confirm wire instructions verbally using a trusted phone number.
Be wary of any changes to payment information via email or text.
Visit or speak directly with your agent or title officer if possible.
Ask Yourself:
Have I sent money to this account before?
How did I receive the wire instructions—are they verified?
Did I speak directly with someone I know?
6. Business Email Compromise (BEC)
BEC scams target both companies and individuals. A fraudster poses as a trusted party (e.g., an executive or vendor) and requests changes to payment methods, wire transfers, or sensitive info.
How to Protect Yourself:
Call the requester using a known number to confirm any unusual request.
Double-check emails for small but suspicious changes in addresses or language.
Don’t share sensitive data via email unless it’s encrypted and verified.
Ask Yourself:
Did I notice slight misspellings or odd phrasing?
Was the request urgent or out of the ordinary?
Have I verified the request using a different communication method?
7. Investment Scams & “Pig-Butchering”
These scams promise high returns with low risk, often pitched as exclusive or urgent opportunities. “Pig-butchering” schemes involve long-term grooming where the scammer builds trust before encouraging fraudulent investments, often in crypto or offshore ventures.
How to Protect Yourself:
Be skeptical of unsolicited investment offers.
Ask questions, get everything in writing, and verify credentials.
Always run potential investments past a professional—like your Northstar advisor.
Ask Yourself:
Was I promised guaranteed or outsized returns?
Did the person offering the opportunity also ask for secrecy or urgency?
Do I know the company or broker? Are they licensed?
General Tips for Staying Safe
Be cautious of unexpected messages or calls, especially those requesting personal or financial information.
Don’t click on unknown links or download unverified attachments.
Use two-factor authentication wherever possible.
Monitor your accounts regularly and report suspicious activity immediately.
What to Do If You’re Targeted
If you suspect you’re being scammed:
Cease communication immediately.
Don’t send any money or information.
Document the interaction and contact law enforcement or report the scam to the Federal Trade Commission (FTC).
Contact our office—we’re here to help protect you and provide guidance on your next steps.
The Bottom Line
Scams are becoming more sophisticated and more frequent. The FTC reports that Americans lost more than $10 billion to fraud in 2023—and nearly one in three adults has encountered financial fraud online.
At Northstar Financial Planners, we’re committed to helping you navigate not just your financial goals, but also the evolving risks that come with living in a digital world. If you’re ever unsure about a suspicious email, message, or request, don’t hesitate to call us. Staying alert and informed is one of the best ways we can work together to keep your assets and identity secure.