< Go Back to all Blogs

How to Avoid Becoming a Victim of Personal Financial Fraud

New data from the Federal Trade Commission (FTC) shows a 30% increase in fraud from 2021 to 2022, with consumers losing almost 8.8 billion to scams—and that’s including just the losses that were reported. With the advent of new technologies, financial frauds have become more sophisticated and difficult to detect by both consumers and policing agencies. It is important to stay vigilant and aware of the latest scams to protect yourself from becoming a victim of financial fraud. In this article, we will discuss some of the common ways that people can become victims of financial fraud and how to protect yourself from these scams. We will also look at some tips for staying safe online and how to spot potentially fraudulent activities before they happen. By following these guidelines, you can help ensure that your finances—and your identity—remain secure.

Personal Financial Fraud Red Flags


Financial fraud and financial statement fraud can be a major threat to your personal finances. It is important to be aware of the potential red flags that may indicate fraudulent activities. These red flags can range from suspicious transactions to unexpected requests for personal information. Knowing what to look for can help you protect yourself from financial fraud and minimize your risk of becoming a victim. Some activities to be on the lookout for include:


Phishing Scams

Phishing scams are types of cyberattacks in which fraudsters impersonate legitimate companies or individuals to steal sensitive information such as passwords, credit card numbers, or other personal data. They usually do this by sending emails or text messages that appear to come from a trusted source. By clicking on the link provided in the message, users can be tricked into providing their login credentials or other confidential information. Some fraudsters use this information to perpetrate identity theft while others use it to gain access to personal or business finances.

To avoid falling victim to phishing scams, it is important to be aware of them and recognize the signs. Be wary of any email that requests personal information such as passwords, bank details, or account numbers. It is also important to check the legitimacy of any website before entering your personal details and never click on links sent via email from unknown sources. Additionally, it is recommended to use two-factor authentication when accessing sensitive accounts online for added security.


Ponzi Schemes

If an investment opportunity sounds too good to be true, it probably is. By using Ponzi schemes—that is, paying existing investors with money generated from those new to the investment, fraudsters will promise large financial gains with little or no risk. These schemes rely on a constant money flow to stay current and when the supply of new investors runs out, the scheme will collapse. Hallmarks of a Ponzi scheme include:

  • Promising large returns with little risk
  • Investments that are not registered with the SEC or other regulators
  • Unlicensed sellers
  • Account statement errors or other paperwork issues
  • Problems cashing out or getting paid

If you see one or more of these red flags in an investment strategy you are considering, opt out immediately.


Asset Recovery Scams

Asset recovery companies have become increasingly popular in recent years, but unfortunately, there are some scammers out there trying to take advantage of unsuspecting individuals. These scams involve companies or individuals claiming to be able to recover lost or stolen assets from a variety of sources, such as banks, insurance companies, and government agencies. Unfortunately, these scammers often take advantage of unsuspecting victims by charging large fees for their services without providing any real assistance.

Fake asset recovery companies say they will recover lost funds, but they often charge an up-front fee, which is your sign that a scam might be in the works. Other red flags include:

  • Aggressive tactics such as forcing you to “act now” or lose your option for recovery
  • Claiming to have connections or inside information that can lead to faster recovery of your assets
  • Discouraging you from seeking advice and requiring secrecy

As such, it is important for consumers to research any asset recovery services they are considering and ensure that they are legitimate before signing any agreements or making any payments.


ATM Scams

ATM scams involve gaining access to your finances by stealing your personal identification number (PIN) or the number of your debit card. Typically, these scams use a false front on the ATM or a device known as a skimmer that fits over the card reader. Some fraudsters use pinhole cameras that capture you entering your PIN. Red flags include:

  • ATMs or point-of-sale (POS) machines that are loose, damaged, or scratched.
  • Keypads that are loose.
  • An ATM that doesn’t return your card after a transaction is ended or cancelled.

In addition, avoid ATMs in tourist-heavy locations or dimly lit areas as these are a hot target for scammers.

Ways to Protect Yourself from Fraud


Credit monitoring and fraud alerts are two of the most important tools to protect your personal finances from fraud. Credit monitoring is a service that provides you with real-time updates about changes in your credit report, such as new accounts opened in your name or suspicious activity. Fraud alerts are notifications that alert you when suspicious activity is detected on your credit report. By using these services, you can be proactive in preventing financial fraud and identity theft.

Additionally, you can take advantage of a forensic audit. A forensic audit is a specialized form of an audit that helps to uncover potential financial frauds or misappropriations of funds. These audits involve the use of advanced data analysis techniques and investigative methods to detect any irregularities in financial documents. This can help you identify if someone has been misusing your funds or committing any other kind of fraud against you. A forensic audit can also be used to uncover suspicious activity in business transactions, such as money laundering or bribery. By conducting a forensic audit, you can protect yourself from personal financial fraud and ensure that your finances are secure. At Cukierski & Associates, our Certified Forensic Examiner can help both individuals and businesses with fraud issues.

Cukierski & Associates Can Help to Protect Your Finances


Financial audits are an important tool that can uncover financial irregularities that may have been overlooked by traditional accounting methods. Through rigorous analysis, they can identify potential financial misstatements or discrepancies that could indicate fraudulent activities. This helps protect the integrity of financial records and ensures that companies are compliant with industry regulations. Audits also provide valuable insight into the effectiveness of internal controls, allowing firms to identify weaknesses in their systems and take corrective action to prevent future fraud.

At Cukierski and Associates, we have over 200 years of experience helping our clients protect their finances and detect discrepancies that might signal fraud. If you are ready for a thorough audit of your personal or business finances, contact us today and let’s get started!

More Blogs

  • Navigating the Tax Landscape of Employee Equity: A Comprehensive Guide to Stock Options

    In the dynamic realm of employee compensation, employee equity is an increasingly popular form of remuneration that grants employees ownership in the company. This non-cash pay comes in various forms, including stock options, restricted shares, and performance-based shares. Understanding the tax implications of these equity options is crucial for both employers and employees.

    Read More
  • New FinCEN Reporting Requirements: Understanding the Upcoming Changes

    Financial Crimes Enforcement Network (FinCEN), a U.S. Department of the Treasury bureau, is introducing significant reporting requirements focused on identifying and reporting beneficial owners and individuals involved in the operation, formation, and ownership of a business entity.

    Read More
  • The Ins and Outs of Estate Planning: How to Protect Your Assets

    One of the key reasons why estate planning is important is to have control over who receives your assets. Without a clear plan in place, the distribution of your estate may be subject to interstate laws, which vary by jurisdiction. This could result in unintended beneficiaries receiving a portion of your assets or leaving loved ones without the resources they need.

    Read More

Ready to Start a Conversation?

Contact Us