8 Ways to Safeguard Your Finances Against Today's Worst Money Scams

Jerry Fradin is vice president and chief fraud officer at Northwestern Mutual.

Financial fraud has come a long way from poorly written emails and obvious impostors. Today's scammers are sophisticated, patient, and increasingly powered by AI—cloning voices, creating deepfake videos, and crafting communications polished enough to fool even the most careful consumers. While seniors are disproportionately targeted, the truth is that no one is off the radar. Fraudsters cast a wide net, and their sights have expanded well beyond bank accounts to include investment portfolios, annuities, and even the accumulated value inside life insurance policies.

The good news is that you're not powerless. Awareness and a few consistent habits can go a long way toward keeping your financial information safe. The tips below give you a clear, actionable road map for protecting what you've worked so hard to build.

1. Learn how to recognize red flags

The first line of defense is recognizing when something isn't right. One of the most reliable warning signs is simply unexpectedness—if you receive an email, text, or phone call you weren't anticipating, treat it with caution. Your personal and financial life has a natural rhythm, and most legitimate contacts follow a pattern you're already familiar with. A random outreach that disrupts that pattern deserves a second look.

Beyond unexpectedness, watch for urgency. Scammers are skilled at creating fear—suggesting your account is frozen, a family member is in danger, or you'll lose access to something valuable unless you act immediately. That emotional pressure is by design. Fear and urgency can override good judgment, and bad actors count on it.

Requests for payment by gift card or cryptocurrency are common scam indicators. Legitimate institutions woudn’t ask you to send money this way.

Finally, keep in mind that caller ID can be "spoofed," meaning a call can appear to come from a number you recognize even though it’s actually originating from a scammer.

2. Always pause before you act

This tip is simple in theory but powerful in practice: Before you respond to any unexpected message or request, stop. Take a breath. Give yourself a moment to think rather than react.

A practical rule to build into your routine is to never click a link or share sensitive information in the moment. Ask yourself three quick questions:

1. Was I expecting this?

2. Is it asking for personal or financial information?

3. Is it trying to create fear or urgency?

If you answer "yes" to any of these questions, that's your signal to pause and verify independently.

Every legitimate business—your bank, your insurance provider, your brokerage firm—will understand if you tell them you need to call them back using a number you already have on file. Patience and verification are signs of a careful consumer, not an uncooperative one.

3. Verify through trusted channels

When a suspicious message appears to come from a company you work with, it’s crucial to verify it through an independent channel. Since the phone number or link provided in the message itself is potentially controlled by the scammer, you will need to navigate directly to the company's official website. Do this by typing the address yourself, or use a phone number from a previous statement, the back of your card, or the company's official contact page. This simple step ensures you're reaching the real institution rather than a convincing replica.

Pay close attention to website addresses and email sender details. A fraudulent email may display a name you recognize, but the actual address often contains a subtle misspelling, an extra character, or an unfamiliar domain. Fake websites may look nearly identical to the real thing, but a closer look at the URL will often reveal the deception. When in doubt, trust the path you independently take to verify—not the communication itself.

4. Build strong passwords—and manage them wisely

Passwords remain one of the most important and most neglected aspects of your digital security. Strong, unique passwords for every account are essential. When you reuse the same password across multiple sites, a single breach can give a bad actor access to several of your accounts—turning one vulnerability into a much larger problem.

For convenience and consistency, consider using a reputable password manager. These tools help you generate, store, and regularly update strong passwords without the burden of memorizing them all yourself. Plus, you will have to remember only one password. Think of it as putting each of your financial accounts behind its own unique lock, rather than using the same key for everything.

5. Activate multi-factor authentication when possible

Multi-factor authentication (MFA) adds a critical second layer of protection to your accounts. Even if a scammer gets hold of your password, MFA requires a second form of verification—like a one-time code sent to your phone—before anyone can get in. A stolen password alone simply isn't enough to open the door.

Enable MFA on every account that offers it: your bank, investment platform, email, and insurance portals. Setup is often quick and adds an important layer of account protection.

6. Monitor your accounts regularly and set up alerts

Catching fraud early can limit the damage. Make it a habit to log in to your bank, credit card, and investment accounts regularly—not just when a statement arrives. The sooner you spot an unauthorized transaction, the easier it is to address.

Set up alerts for key activity: logins, transfers, withdrawals, and profile changes. These give you a real-time signal when something unusual happens. And watch for subtler warning signs, too—a password reset you didn't request, an unexpected MFA code, mail that stops arriving, or a balance that looks off. Fraud perpetrators often start with a small, subtle test before making a bigger move. When you know what your accounts typically look like, irregularities are much easier to catch.

You might also want to consider freezing your credit, which prevents the credit reporting bureaus from giving information to anyone who makes an inquiry about you. While doing so is free, it can be inconvenient, as you’ll need to unfreeze it before seeking future lines of credit.

And if you have a landline phone that you rarely use, consider contacting your telecom provider about how to secure or deactivate it. Scammers have been known to port unused landlines in order to assume a consumer's identity and access their accounts—often without the consumer realizing it for weeks.

7. Protect your life insurance and investment assets as you would your bank accounts

Many consumers are surprised to learn that the accumulated values inside their permanent life insurance policies and annuities are now being actively targeted by fraudsters. These assets—built up over years of careful planning—are just as vulnerable to account takeover attempts as your investment portfolios or checking accounts. Bad actors have discovered them as accessible and valuable, and they've ramped up their efforts accordingly.

Treat every financial account with the same level of vigilance. Monitor policy activity, use strong authentication measures, and report any unusual communications that reference your insurance or investment accounts immediately. If you're older or you care for someone who is, be especially attentive. Fraudsters disproportionately target the elder population because of their accumulated assets and their tendency to respond to pressure tactics.

8. Have a trusted person to call when something feels off

One of the most underrated protections you have is a trusted person in your life you can call when a situation raises concern. Scammers thrive on isolation—they want you to make a decision quickly and while you’re alone. Having someone you can consult gives you valuable perspective and helps break the emotional momentum a fraudster is trying to create.

This trusted contact could be a family member or a close friend. If you receive a suspicious communication and you're unsure what to do, step away from the situation, make that call, and verify before you act.

Work with your financial advisor to protect your financial future

Knowing what to look for is important. Having a trusted partner who helps you act on that knowledge is invaluable.

Your Northwestern Mutual financial advisor is a valuable resource when it comes to protecting your financial life. They can help you review your Northwestern Mutual accounts, identify vulnerabilities in your current Northwestern Mutual security posture, and connect you with the Northwestern Mutual internal resources you need if something goes wrong. When you have a concern—however small it may seem—your financial advisor is the right person to call first.

Northwestern Mutual backs that relationship with multiple layers of technical, administrative, and physical safeguards working around the clock to protect your information and assets—advanced technology, continuous monitoring, authentication controls, and strict access management, all working together.

If you ever receive a communication claiming to be from Northwestern Mutual and something feels off, don't use the contact information in the message. Go directly to the official website, log in through the official portal, or reach out to your financial representative using contact information you already have and trust. We'll never pressure you to act urgently or secretly—and we fully support you taking the time to verify before acting.

If you suspect your account or personal information has been compromised, report it right away. Northwestern Mutual's Special Investigations Unit (SIU) is a dedicated team ready to help you navigate identity theft, account takeover, and other fraud concerns.

The financial landscape is more complex—and more vulnerable to fraud—than it has ever been. But you don't have to face it alone. With the right habits, the right awareness, and the right partnership, you are far better positioned to protect everything you've built. Your Northwestern Mutual financial representative is here to help you do exactly that.