Spot the Scam: 5 Common Fraud Schemes to Watch for in 2026

Fraud is evolving at the speed of technology, with scammers utilizing new tools, such as artificial intelligence, to devise innovative methods for stealing from consumers and businesses alike. In fact, 73% of American adults have experienced an online scam or attack, according to a survey by the Pew Research Center. It found that most Americans receive scam calls, texts, and emails every week. The Federal Trade Commission (FTC) reports that Americans lost $12.5 billion to fraud in 2024, a 25% increase from the previous year.

While digital banking, mobile payments, and online shopping offer convenience, they also open the doors for all kinds of deception. At Flanagan State Bank, we want to help all our customers protect their funds, so here are five of the most common (and convincing) scams you’ll likely see in 2026—and how to protect yourself before they strike.

1. Phishing 2.0: Smarter Emails, Smarter Traps

The days of horribly misspelled emails from scammers overseas are gone. Fraudsters can now use artificial intelligence and information pulled from the Internet to create realistic messages and target your bank, your employer, or your favorite retailer. The Cybersecurity & Infrastructure Security Agency (CISA) reports that more than 90% of successful cyberattacks against families start with a phishing email.

Scammers might use information pulled from social media to impersonate one of your relatives or someone you work with. They may use fake email addresses that are slightly misspelled or a few letters off from the real thing, such as “your_bank.com” instead of “yourbank.com.” They can also spoof email addresses to make it look like an email is coming from a legitimate business or someone you know. 

They’ll typically include a copied logo and a link that looks legitimate, but if you click on that link, it could take you to a fraudulent website that looks like the real thing, or it could install malware on your device. The message might claim to be from your bank, with a link for you to “reset” your password. It might say there’s been some kind of fraud, and you need to “secure” your account. The scammer’s goal is to steal your login credentials and other information that they can use to rip you off.

For businesses, scammers may try to impersonate an employee, such as an executive directing someone to transfer funds into the scammer’s account. They might pretend to be a vendor asking someone to change their payment information or to submit a bogus invoice.

Our advice on how to spot phishing emails in 2026 involves taking a close look at any email involving payments, banking, or login credentials. Start with the email address and make sure it’s legitimate. If the email includes a link, it could be a fake. Hover your cursor over the link (without clicking on it) to see if the real web address appears. 

Make a habit of always verifying any request for personal details or payment information. If an email claims to be from your bank, call the bank at a number that you know is legitimate (not the number that’s at the bottom of a suspicious email signature). If you’re asked to log on to an account, go directly to the same website you’ve always used rather than clicking on a link in the email. 

2. Text Message Scams (Smishing) Are Getting Sneakier

The text message version of a phishing scam is known as a smishing scam. The message might claim there’s been suspicious activity in one of your accounts and ask you to tap on a link to resolve the issue. A scammer might ask you to “confirm” personal information such as your address, bank account, credit card number, Social Security number, etc. It might also claim to be from a retailer or shipping company and say there’s a problem delivering something you ordered. As with phishing scams, the goal is to trick you into tapping on a link so the scammers can steal your information or install spyware on your device.

The FTC’s “Top Text Message Scams of 2024” report shows consumers reported $470 million in losses to text-message scams in 2024, with fake package deliveries being the number one method of ripping people off. Fake job opportunities and “wrong number” scams are also common, where a scammer reaches out with an innocent-looking message that they “accidentally” sent to the wrong person. If you reply to tell them they’ve got the wrong number, they’ll use that as a chance to strike up a conversation and try to scam you.

Fraud prevention in 2026 involves never replying to unexpected text messages or tapping on a link unless you know for sure that it’s legitimate. If you receive a message that pretends to be from your bank, your credit card, or any other business, call the company using the number on the back of your debit or credit card, or your monthly statement.

You can report scam text messages by forwarding them to 7726 (SPAM). You can also reduce your chances of receiving scam messages by blocking spammers with Apple’s iMessages app or the Google Messaging App (for Android users).

3. Voice Spoofing and “Imposter” Calls

Vishing scams involve voice calls and voicemails from scammers who can spoof your caller ID into thinking a call is coming from your bank or some other number. If you answer one of these calls, be forewarned that scammers can use artificial intelligence to impersonate the voice of people you know, such as a relative or someone you work with. They might name-drop the names of your relatives or coworkers, using information they pulled from the Internet. 

If the call has anything to do with banking or your personal information, you should write down what they say, hang up, and call the business or your bank at the number listed on its website or the one stored in your list of contacts. Also, keep in mind that your bank will never ask for your full passwords, PINs, or verification codes.

If someone is impersonating a colleague or a friend, you could call the person back from your contacts list. If someone claims to be a relative who needs financial help, you could call the person back from your contacts list. You might also call another relative who could help you determine if the request for funds is real. You could also ask the person a question that only the real individual would know, such as the last meal you had together.

4. Social Media “Investment” and “Prize” Scams

Social media is rampant with all kinds of scams, such as fake giveaways or crypto investment opportunities promoted on Facebook, Instagram, and TikTok. The FBI issued a warning last summer about criminals targeting American investors through social media platforms and messaging apps. These scams often promise quick returns or “guaranteed” profits.

Known as “ramp and dump” or “pump and dump” scams, fraudsters will use social media ads, fake accounts, and bots to promote an investment. They might impersonate legitimate investment firms or well-known stock analysts, with several bot accounts to offer endorsements of the scheme.

The scam often involves fraudsters controlling a large volume of a low-priced stock or cryptocurrency that they manipulate to drive up its price. After enough victims put their money in, the scammers sell their shares at a profit, the price falls, and the victims lose their funds.

You can avoid this scam by ignoring any investment tips you see on social media posts, advertisements, or received through “accidental” text messages and messaging apps. If you see comments about “guaranteed results,” offers of “exclusive” investment recommendations, or pressure to act quickly, these are all red flags that it’s probably a scam. Another warning sign is if someone offers a financial benefit if you open an account and give them your personal information.

You should ignore all high-pressure offers. Instead, take the time to verify any business or organization before sending them money, and report any suspicious activities to the platform’s moderators. As with these other scams to avoid in 2026, don’t give out any personal information or access to your accounts unless you’re absolutely sure that it’s legitimate.

5. Peer-to-Peer (P2P) Payment Scams

Payment apps like Zelle, Venmo, and Cash App are increasingly popular because they’re a convenient way to send funds to someone. Unfortunately, that convenience makes them a target for scammers. Here are a few examples of their most popular schemes:

• The “accidental” funds transfer. A scammer sends a message to someone, claiming they accidentally sent the person some money, and asks them to send it back. Even if the transfer looks genuine and shows up in the victim’s account, the “accidental” transfer is probably made from a stolen or fake account. The victim sends money to the scammer and winds up with a loss. 
• A bank imposter scam involves a fraudster sending a message claiming to be from your bank’s fraud department. The message may ask you to send money to “verify” your account or to “reverse” a fake transaction. Sometimes scammers claim to represent law enforcement, such as the FBI, and ask you to transfer funds to keep them “safe.”
• Fake product purchases happen when scammers pose as sellers who promote bogus and nonexistent products on online marketplaces such as eBay and Etsy. They request payment in advance but never send the items.
• Unauthorized money transfers happen when thieves steal someone’s login credentials (using the methods mentioned above) and steal their funds. Scammers are also known to change someone’s account settings, making it hard for victims to stop the transfer or recover their funds.

You can avoid peer-to-peer (P2P) payment scams by only sending money to people you know personally and making sure you send it to the right place. Don’t ever “return” funds to a stranger, even if they claim to represent your bank or the FBI. If you’re ever in doubt, call your bank directly.

How to Stay Ahead of Fraud in 2026

Online banking security and fraud prevention in 2026 starts with always confirming any request for money or changes to any of your accounts, and don’t make any rushed decisions. Scammers love to create a sense of urgency by claiming your funds are at risk and saying you need to act immediately. Here are some other steps you can take to avoid getting scammed:

• Enable two-factor authentication on all financial and email accounts, so you would have to approve any logons through an app on your phone or a code you receive through text or email.
• Use strong, unique passwords for each account and update them regularly.
• Set up transaction alerts via mobile or online banking.
• Confirm the identity of anyone before sending money. This includes their name, phone number, email address, and any other account information.
• Keep all your software updated, including financial and P2P apps.
• Be extremely cautious when asked for personal information, such as account numbers and passwords.
• Stay informed through our Fraud & Scam Awareness page for ongoing updates on scams and how to avoid them.

Scammers are constantly changing their tactics, so awareness is your strongest defense. At Flanagan State Bank, we’re committed to educating our customers and keeping ahead of the latest shifts in technology and fraud prevention. If something doesn’t feel right, trust your instincts, and call us before you click.

Think You’ve Been Targeted? 

If you think you’ve been targeted by a scam or need more help and information on keeping your accounts secure, please contact your local Flanagan State Bank.