New Year, New Financial Scams to Watch For

January 17, 2025

From wildfires to the push for immigration reform and the start of tax season, 2025 is already delivering opportunities for fraudsters to try to trick you out of your hard-earned money. Make a resolution this year to stay vigilant, especially when opening attachments, clicking on links, or visiting websites. Here are five scams to watch out for as we start the new year.

1. Charity Scams

With wildfires destroying entire neighborhoods in Southern California, so many people have lost everything. As we watch the destruction on the news, often our first instinct is to find out what we can do to help.

That is exactly what scammers are hoping for. Bad actors can easily set up fake charities online and use fundraising pages, social media, and websites to collect donations for people impacted by the fires. Usually, they will pressure you with a sense of urgency, noting that donations are needed immediately to help those in need.

Don’t be fooled! Before donating any money, do some research on the organization. Ask what they will be doing with your donation. See if they’ve done other charity work in the past. Be cautions of donating on fundraising platforms like GoFundMe, as it’s hard to trace where the money is truly going. Donate to organizations that you are familiar with and that have a good reputation.

2. Immigration Scams

Immigration is a hot topic in the news today, which is giving rise to immigration scams. These scams target some of the most vulnerable people living in the U.S.

With immigration scams, fraudsters impersonate attorneys or law firms and advertise immigration services on social media. The fraudsters claim they can help people complete immigration paperwork and often guarantee they can get work permits, green cards, or citizenship. They require payment through wire services like Western Union or Zelle. Scammers have even gone as far as setting up fake virtual meetings, dressing up as a U.S. Citizen and Immigration Services (USCIS) officer.

Remember that USCIS will never make an appointment through a messenger app. Also, USCIS fees must be paid by mail or through their website, never through a wire service. To avoid falling victim to this scam, always visit USCIS.gov for legitimate immigration information.

3. Debt Consolidation or Credit Relief Scams

Paying off debt is a popular New Year’s resolution. Debt consolidation may seem like a good option if you have high balances on multiple cards, but beware – scammers are out there to take your money. These scammers make false claims that they can negotiate lower payments or settle debts with your creditors for a fee. Once you pay the fee, they disappear with your money.

If you are looking into debt consolidation or other credit relief services, be sure to research any company before you hand over any fees. Check for reviews and complaints on trusted sources, like the Better Business Bureau. Be wary of claims that offer unrealistic promises. Contact your lender if you are having trouble making monthly payments to work out a legitimate arrangement for getting out of debt. 

4. Tax Scams: Fake Tax Preparers

With tax season upon us, scammers are finding new ways to steal your money by impersonating tax preparers. These scammers advertise their services through flyers or on social media, claiming they can file your taxes and guarantee a big refund. They could even set up fake storefronts.

These scammers usually charge a fee for their services. After you hand over all of your details, they complete your return and add fake information to inflate your refund. They then have the refund sent to their account – and disappear with all of that money.

To avoid this scam, ask for recommendations for tax preparers from people that you trust. If you choose a tax preparer, ask for references. The IRS also has a Federal Tax Return Preparer directory you can use to search for a legitimate tax preparer near you. Also, if someone tells you to sign a blank tax return or estimates your taxes off the top of their head, it’s best to be skeptical.

5. Tax Scams: Identity Theft to Steal Your Refund

If a bad actor has gotten your Social Security number, they can file a tax return in your name and steal your refund. Criminals that do this file the returns early in the tax season before you have a chance to file your legitimate return.

To avoid this scam, take every possible precaution to safeguard your Social Security number. Set up alerts on IRS.gov to notify you about your return status, so you will be alerted if one is filed fraudulently. Also, it’s a good idea to file your tax returns as early as possible to avoid becoming a victim of this scam.

Always Stay Vigilant!

The best way to protect yourself against scammers trying to steal your money is to defend your personal information and stay vigilant.

  • Protect your accounts with strong passwords
  • Don’t use the same password for all of your accounts
  • Be wary of opening attachments or clicking on links from unknown sources
  • Before clicking on any ads or links, verify they are taking you to a legitimate website by hovering over the link and closely looking at the URL. Watch for misspellings or other errors that could indicate the link is taking you to a fake website
  • Never give your personal information, including account numbers, passwords, and PINs, to someone who contacts you claiming they are with an organization you know, no matter how urgent or scary they make the situation sound. Verify that the organization is legitimate by contacting them through a trusted source

And always remember – if it sounds too good to be true, it probably is!

Learn more about how to protect yourself from identity theft on the Federal Trade Commission’s website. Learn more about other fraud and scams on the Consumer Financial Protection Bureau’s website.

Share This Article: