Learn how to spot and prevent crossover scams that combine multiple fraud techniques to deceive investors.
Spotting and stopping more sophisticated scams
U.S. consumers reported losing more than $12.5 billion to fraud in 2024, a 25% uptick from 2023.1 This alarming rise is driven by fraudsters whose methods for targeting investors are constantly evolving—employing scams that combine multiple common fraud techniques. We examine 2 versions of these "crossover" scams and provide tips for investors to protect their assets.
Understanding crossover scams
In crossover scams, fraudsters combine common techniques to make their scheme more convincing and harder to detect. These scammers employ various methods of outreach, such as phone calls, emails, or text messages, and use social engineering tactics to build trust. They often request payment through a fraudulent money transfer method, making it difficult for victims to trace the transactions.
Crossover scams are particularly dangerous because they blend different elements of various scams over weeks, months, or even years, increasing the fraudster's likelihood of success. Scammers may impersonate trusted entities such as banks, government agencies, or well-known companies to trick investors into providing sensitive information or making financial transactions.
The costs of fraudulent activity extend beyond financial losses. Scammers manipulate and deceive victims into trusting them. As a result, victims often experience emotional stress, including depressive symptoms, anger, and disappointment. The scams can also lead to marital problems and a significant drop in financial well-being and confidence.2
"The reality is that these scammers are con artists who prey on the victims' fears and needs in persuading them to act," said Vanessa Richards, global head of Vanguard Fraud Prevention and Physical Security.
Collectively, these risks can be mitigated by understanding how the scams operate. The scenarios that follow illustrate 2 common crossover scams.
Computer compromise and impersonation
Source: Vanguard, 2025.
In this type of scam, the fraudster initiates contact with the victim using various methods, such as online popup windows, phishing emails, or social media platforms. Once contact is established and the victim's computer is compromised, the victim is transferred to other scammers posing as representatives of trusted entities such as fraud departments, the FBI, or the U.S. Department of the Treasury. The impersonators inform the victim that "immediate actions are needed" to keep the person’s assets safe.
If the misrepresentation is successful, the scammer will persuade the victim to move funds to a "new secure account." During the transfer process—whether the victim moves funds in person, through a courier service, or digitally—the assets are stolen.
Stay Vigilant Against Financial Scams [Title card “Stay Vigilant”]
In today’s digital age scammers are skilled at exploiting your kindness and recognizing vulnerability.
Be cautious of unexpected contact or emotional manipulation, such as using a loved one’s name with an urgent request for money or personal information.
And if you feel it's possible that you’re being scammed discuss your concerns with someone close to you.
If something feels off it probably is - awareness is your best defense. Stay vigilant. Protect what matters.
Verify Before You Act (added Senior targeting)
Nowadays financial scammers are getting smarter, combining different tactics to trick you. They may reach out through text, call, or email over weeks, months, or even years to try to gain your trust.
And while seniors are especially at risk, anyone who may be in a vulnerable situation, or who is not being careful, can be fooled by these tactics.
Even when it seems to be from a trusted organization, always verify requests to update your profile or make an unfamiliar transaction.
Take a deep breath, don’t click, and instead contact the organization directly through known verified methods. Never rush into transferring funds or sharing sensitive information. If you’re not sure, ask someone you trust. When it doubt, talk it out.
Stay vigilant. Protect what matters.
Impersonation scam
Here’s what an impersonation scam or a computer compromise could look like:
The scammer reaches out, often claiming to be from a trustworthy company or the government.
They try to convince you that your computer or assets are at risk and then they pressure you to transfer funds, provide sensitive information, or even convert your assets to gold-bars or crypto to be “safe”. Do not fall for it.
Stay vigilant. Protect what matters.
Investment/Social Media Scams
Here’s what a common online investment scam could look like: The scammer builds a relationship with you through social media and then they introduce an investment opportunity that may seem too good to pass up.
The scammer also uses emotional manipulation tactics, like the fear of missing out, or FOMO, to encourage you to invest.
Take a moment to consider the risk. Consult a trusted financial advisor, friend, or family member.
Stay vigilant. Protect what matters.
Add a Trusted Contact (added senior targeting)
In today’s digital world protecting your financial safety is more important than ever. And while financial scams often target older adults, anyone who isunprepared or not careful is at risk.
One smart move? Adding a trusted contact to your investment accounts.
They have no authority to act on your behalf financially, but in times of emergency they can provide essential information to your financial institution, like verifying your wellbeing or sharing key contacts.
Your trusted contact is a safety net, so reach out to your financial institution and get that set up.
Stay vigilant. Protect what matters.
Protect your financial data
Financial scams can affect anyone, but seniors are especially at risk. Fraudsters rely on isolation and secrecy, so staying connected and informed helps protect yourself and others.
Not sure if someone is trying to scam you or a loved one? - Don’t hesitate to reach out to a trusted friend, family member, or contact your financial institution.
The numbers are alarming, with the U.S. reporting more than 12 billion dollars in fraud losses last year, an increase of about 25% from the year prior. If you know you've been scammed, reach out to law enforcement to ask for help.
Scammers ARE getting more sophisticated -- using tricky impersonation and romance scams, their tactics can be difficult to spot.
Stay vigilant. Protect what matters.
Relationship and investment
Source: Vanguard, 2025.
Another common multifaceted attack is a personal relationship and investment scam, which uses emotional manipulation to build a sense of dependency. Following initial contact using a social media platform or other networking site, fraudsters establish relationships with victims through frequent communication.
Once trust is established, scammers encourage victims to join an investment opportunity on a fake website. After the victims initiate the transfer of funds, the websites provide a false narrative that the investment is producing high returns, encouraging the victims to invest additional funds. When the victims later want to withdraw assets, they're told they must pay taxes and fees. By this point, the assets and additional fees are with the scammer. This crossover scam differs from the singular personal relationship/romance scam, in which the victim is manipulated into sending money to the scammer directly.
These scenarios illustrate how important it is for investors to be aware of the initial signs of crossover scams and how they can morph into larger issues. Scammers intentionally confuse investors, especially seniors, by promising high returns and making the schemes more complex, involving multiple channels and modes of contact.
Knowing the signs
As crossover scams become more sophisticated, remember that Vanguard will never:
- Instruct investors to keep activities secret from their trusted or designated contacts.
- Recommend liquidating assets to cash or commodities, such as cryptocurrency or precious metals, as this does not align with our approach.
- Ask investors to perform a certain type of transaction to "protect" their assets.
- Encourage investors to act dishonestly, such as telling family members or loved ones false reasons for withdrawing funds.
Investors who receive a suspicious communication from a financial institution should contact the institution separately using verified public contact information to raise their concerns and report the correspondence.
While crossover scams can be complex, investors should pause and think before they act on an unsolicited request. Ask another person you know and trust before acting. Awareness and vigilance are key to safeguarding assets from these increasingly complicated fraudulent schemes.
Related links:
- Security center (Vanguard website)
- Taking steps to improve financial safety (article, issued March 2025)
Vanessa Richards
Global Head of Fraud Prevention and Physical Security