Someone calls you out of the blue, says your computer has been hacked, and tells you federal agents are already on the case. Your heart rate spikes because this person sounds official, knowledgeable, and genuinely concerned about your financial safety. 

You follow their instructions because every word they say feels urgent, credible, and impossible to ignore in that terrifying moment. That is exactly what these criminals want you to feel, and your panic is the most valuable weapon in their playbook. 

A new report from Vanguard breaks down how modern scammers blend multiple fraud tactics into elaborate, long-running financial schemes. These crossover scams account for a staggering $12.5 billion in total consumer fraud losses reported in 2024.

The methods are more patient, more layered, and more psychologically manipulative than anything most people have encountered before in their lives. You might think you are too smart to fall for a scam, but these criminals have turned deception into a disciplined profession.

Fraud losses surged 25% in 2024 as scammers refined their entire playbook

Consumers reported losing more than $12.5 billion to fraud in 2024, representing a full 25% increase over the previous year’s totals. The number of fraud reports stayed roughly the same at 2.6 million, but far more of those victims actually lost real money. 

In 2023, only 27% of people who reported fraud said they lost money, but that figure jumped sharply to 38% in 2024, the Federal Trade Commission reported. Investment scams alone accounted for $5.7 billion in reported losses, a 24% increase from 2023, according to FTC data. 

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More Dividend stocks: Imposter scams came in second at $2.95 billion, with criminals posing as banks, government agencies, and well-known companies to deceive targets. Bank transfers and cryptocurrency were the most commonly used payment methods in fraud, combining for more than $3.4 billion in total losses.

Vanguard’s report focuses specifically on crossover scams, a growing category where fraudsters combine multiple common techniques into a single scheme. 

These scams unfold over weeks, months, or even years, giving criminals plenty of time to build genuine-feeling trust with their victims. The slow burn is what makes crossover scams particularly devastating, because you never see the theft coming until it is far too late.

Computer compromise scams start with a fake emergency on your screen

The first crossover scam Vanguard describes begins with an unsolicited pop-up, phishing email, or social media message landing on your device. A scammer tells you that your computer has been compromised and that immediate action is required to protect your financial accounts today. 

Once you believe the initial lie, you are transferred to another person posing as an FBI agent or Treasury Department official online. The impersonator tells you that your money must be moved to a new, secure account to prevent further unauthorized access to funds. 

Whether you transfer money digitally, via a courier service, or in person at a bank, the funds go directly to criminals. Your money disappears into accounts controlled by fraud networks that are nearly impossible for law enforcement to trace after that transfer.

Why this financial accounts scam works on even the most careful people

This kind of attack works because it triggers your fight-or-flight response, making rational thinking much harder under pressure in the moment. Scammers intentionally create a sense of crisis, so you act quickly and skip the verification steps that would clearly reveal the deception. 

“Urgency works for scammers because feeling rushed hinders your ability to think things through,” said Vanguard Investor Protection Head John Ginelli. “Scammers know that if they can get you to act fast, make you click on a link, send money, or share personal details, you’re much less likely to pause and question what’s happening.”

No legitimate government agency will ever call you, demand secrecy, or instruct you to move money to protect your own personal assets. The FBI’s Internet Crime Complaint Center received more than 859,000 complaints in 2024, with total reported losses exceeding $16.6 billion across categories. 

People over age 60 suffered the most, filing 147,127 complaints and losing nearly $4.9 billion, a 43% increase over the year 2023, the FBI reported. Average losses for victims in that age group exceeded $83,000, and more than 7,500 individuals over age 60 lost more than $100,000 each.

Scammers exploit urgency and fear, pushing quick decisions that override logic, leading even cautious individuals to fall victim to costly deception.

Relationship and investment scams exploit your emotions over weeks or months

Grusho Anna/Shutterstock The second crossover scam Vanguard highlights begins on a social media platform or dating site, where a stranger initiates friendly contact first. Over weeks or months, the scammer builds a personal relationship with you through consistent communication, flattery, and emotional manipulation tactics. 

Once trust is firmly established, they introduce what appears to be a legitimate investment opportunity hosted on a professional-looking website. You start investing, and the fake website shows impressive returns that encourage you to invest even more over time. 

When you eventually try to withdraw your funds, the scammer tells you that you must first pay taxes or significant processing fees. By that point, your original investment and any additional fees you paid are already gone, sitting in accounts you will never access.

Pig-butchering scams are growing nationwide

This type of fraud is sometimes called a pig-butchering scam because criminals patiently fatten their victims before taking everything they have saved. Cryptocurrency investment fraud resulted in $5.8 billion in losses and 41,557 complaints in 2024, a 47% increase in losses from the prior year. 

Many of these schemes used tactics known as pig butchering, where fraudsters build fake online relationships to manipulate their victims into investing, the FBI’s IC3 report found. The emotional damage from these scams extends well beyond the financial loss, and victims often experience depression, anger, and severe broken trust. 

Research published in the Journal of Economic Psychology found that fraud victims frequently report lasting drops in their financial confidence. Marital problems and significant declines in overall financial well-being are also common consequences that can persist for years after the incident.

Watch for these financial scam red flags, Vanguard says  

Knowing what a real financial institution would never ask you to do is one of your strongest defenses against sophisticated crossover scams. Vanguard published a specific list of behaviors that no legitimate firm will ever engage in, and you should study every single item closely. 

If anyone claiming to represent your bank or brokerage does any of the following, you are almost certainly dealing with a trained criminal. Vanguard says it will never instruct you to keep any account activity secret from your trusted contacts or designated family members whatsoever. 

The firm also says it will never recommend liquidating your assets into cash, cryptocurrency, or precious metals like gold bars for protection. Legitimate investment companies do not ask you to perform specific transactions under the pretense of protecting your own assets from outside threats.

Key warning signs of a crossover scam you should memorize

  • Anyone who contacts you and demands secrecy from your spouse, family, or trusted contacts is almost certainly running a scam against you now.
  • Requests to convert your investments into cash, cryptocurrency, or gold are a hallmark of fraud, not a legitimate asset protection strategy.
  • Pressure to act immediately, without consulting anyone else, is a manipulative tactic designed to bypass your rational decision-making process entirely.
  • Encouragement to lie to your bank or family about the real reason you are withdrawing large sums of money is always a fraudulent request.
  • Unsolicited investment opportunities promoted through social media or dating apps by new online acquaintances always deserve extreme skepticism.

The core principle is simple: If someone you did not contact first is telling you to move your money, stop everything and verify independently. 

Call your financial institution directly using the phone number printed on your account statement or the back of your debit or credit card. Never use a phone number or website link provided by a suspicious caller or message, because scammers fully control those contact channels.

Steps to protect your accounts and your entire family

Protecting yourself from crossover scams requires building habits that make it harder for criminals to gain your trust or access your accounts. 

You do not need to become a cybersecurity expert, but you do need to adopt a few simple practices that dramatically reduce your exposure. The following steps are recommended by Vanguard, the FTC, and the FBI as your best defenses against increasingly sophisticated fraud schemes today.

Step 1: Add a trusted contact person to your investment accounts

Most major brokerages, including Vanguard, Fidelity, and Charles Schwab, allow you to designate a trusted contact on your investment accounts today. This person has no authority to make transactions, but your financial institution can reach out to them if suspicious activity is ever detected. 

Adding a trusted contact provides an additional layer of protection, especially for older investors who may be targeted by isolation-based scams. Think of it as a safety net that helps your brokerage verify your well-being or share important information in the event of a potential fraud emergency.

Step 2: Enable two-factor authentication on every single financial account you own

Two-factor authentication adds a second verification step beyond your password, making it significantly harder for criminals to access your accounts online. Use an authenticator app rather than text-message codes whenever possible, because scammers can easily intercept SMS messages through SIM-swapping attacks. 

Never share your two-factor authentication codes with anyone, even if the caller claims to be from your bank or brokerage firm. Setting up this protection takes less than five minutes per account and can prevent thousands of dollars in potential fraud losses.

Step 3: Talk to your older family members about these scam tactics 

Adults over age 60 filed the most fraud complaints and incurred the highest total losses of any age group in 2024. Average losses for victims in this age group exceeded $83,000, and more than 7,500 individuals over 60 lost more than $100,000 each, the FBI reported. 

Having a direct, non-judgmental conversation with your parents or grandparents about these tactics can help prevent devastating financial losses today. Share the specific red flags listed in this article and encourage them to call you before acting on any unsolicited financial request received.

Scam sophistication is accelerating, but your awareness remains the strongest defense 

Crossover scams succeed because they exploit your trust, your fear, and your desire to protect the money you have worked hard to earn. The criminals behind these schemes are patient professionals who study human psychology and use it against you with precision and discipline daily. 

Your best response is to slow down, verify everything independently, and never act on an unsolicited request to move your money anywhere, especially quickly. If you suspect you have been targeted by a scam, report it immediately to the FTC at ReportFraud.ftc.gov or to the FBI at ic3.gov. 

Contact your financial institution directly using verified contact information and alert your trusted contacts about the suspicious interaction right away. Quick reporting helps law enforcement identify fraud patterns and can sometimes help recover stolen funds before criminals move them out permanently.

These con artists prey on people’s fears and needs to persuade them to act, and awareness is your most effective tool against all of them. 

That assessment came directly from Vanessa Richards, Vanguard’s Global Head of Fraud Prevention and Physical Security, in the firm’s new crossover scams report. Your money, your identity, and your peace of mind are all worth the extra few minutes it takes to verify before you ever act.

Related: How to Protect Yourself from the Soaring Number of Cyber Scams and Fraud