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If there was ever a time when a magic bullet to make a few extra dollars sounds appealing, it’s 2025.
You may have found yourself pondering whether it’s time to get into crypto or join that trading scheme your friend was telling you about — but watch out for financial scams.
The bad news is that if it sounds too good to be true, it probably is. But the good news is that it is possible to make money from investing!
This article covers what financial fraud is and the main types of financial scams to be aware of. I’ll also be using my time navigating them to reveal some legitimate ways to make money, which is what ProfitSavvy Panda is all about!
This post is all about the most common financial scams to avoid in 2025.
Financial Scams That Can Send You Into A Nose-Dive
What is Financial Fraud?
Financial fraud is a term to describe any kind of dishonest ways to get money or assets from someone.
Contrary to popular belief, you don’t have to be old or stupid to fall for financial fraud.
Scammers are often experts in human psychology, studying how to push the right button at the right moment, and they’re constantly fine-tuning their methods.
They also increasingly have technology like AI on their side to make it even trickier. For instance, scammers are now better able to imitate calls so they look like they’re from legitimate organizations.
Now that you’re nice and worried, let’s get into what kind of scams to look out for.
1. Trading Groups and Mentors
If you’re a regular social media user, there’s a good chance you’ve come across an influencer claiming to be making thousands of dollars per month through trading.
They’ll probably say you can do the same if you join their group or use their mentor.
Bear in mind that if you send these scammers your money, they may send you fake screenshots to make you think they’re making profitable trades (to encourage you to send even more).
It is possible to make money from trading, but scammers guarantee ludicrously high returns and downplay risks.
If someone was skilled enough at trading to consistently turn $1,000 into $10,000, they’d practically be a money printing machine and wouldn’t need your $1,000.
A true millionaire mindset is about consistency over a long timeframe and accepting risks.
2. Crypto Rug Pulls
I take no issue with bitcoin or cryptocurrencies, but I can’t deny that this sphere is rife for scams.
Recently, influencer Hailey Welch (“Hawk Tuah” girl) launched a cryptocurrency that reached a market cap of $490 million, only to dive in value — leading to allegations that she had drawn in buyers to intentionally pull the rug, so that insiders could earn a profit.
She’s not the only one who has been criticized for a crypto rug pull, with the likes of Mr. Beast and Logan Paul accused of similar actions.
If you want to invest in crypto, invest in crypto. But steer clear of random cryptocurrencies pushed by public figures unless you really, really know what you’re doing.
Otherwise, there’s a chance you’re just paying to make someone else rich!
3. Relationship Investment Scams
The scary thing about financial scams is that it’s not always immediately apparent they have anything to do with investing, never mind fraudulence.
In relationship investment scams, someone may reach out to you as a friend or romantic interest, and only bring up financial ventures once they’ve already won your trust.
This is all part of a long con.
These scammers may be from social media, dating apps, or (in more unusual cases) be real-life acquaintances reaching out.
Ultimately, it doesn’t matter who is messaging you — once they start talking about investment opportunities, your spidey senses should be tingling.
4. MML Scams
If you like the idea of a side hustle, you’re not alone. In 2025, we could all do with some extra cash! So if someone presents an entrepreneurial opportunity on your lap, it might be tempting.
I’m all for entrepreneurship. But if that opportunity turns out to be an MLM, you should steer clear.
While these companies are technically legal in the US, they’re also pyramid schemes — and as a new recruit, you’re going to be right at the bottom of that pyramid.
You will likely need to pay money upfront for stock, which you may not be able to sell back. Steer clear and check out more legitimate sources of passive income instead.
5. Job Board Scams
If you’ve been job hunting recently, you’re not alone. The economy has taken quite the hit, leaving many looking for work.
Unfortunately, scammers are profiting from this by posing as recruiters. The fraud comes once you’re offered the “job,” after which someone will deposit a check in your account and transfer some money (or ask you to buy something as part of the job).
Always verify who you’re speaking to, and don’t trust anyone who offers you a job after a suspiciously easy interview process.
6. Fake Check or Deposit Scams
This one is a classic in the scamming world. You receive an unexpected deposit into your account — be it a bank account or an app like Venmo — and then you get contacted by someone asking you to transfer it back.
Except, once you do this, it will turn out to be a fake check. Meaning the bank takes back the scammer’s money, while you’re out of pocket for the money you transferred to the scammer.
What should you do instead? If you receive a weird transfer, leave it in your account (DON’T spend it) and contact the bank.
7. Imposter Fraud
There’s nothing like a call from the IRS to strike fear into the soul. Scammers know this, and they know that when you’re afraid, you’re not thinking straight.
If you get contacted by an official organization like the IRS, always be skeptical about their true identity. Never send anyone money or give away personal details like your Social Security number right off the bat.
Since scammers can now make it seem as though they’re calling you from an organization’s official number, it’s tough to be sure who a caller really is. It’s best to hang up and call the real number yourself.
Swerve those Financial Scams
Have these tips in the back of your mind and there’s no reason you should need to worry about financial scams again. Forget the get-rich-quick schemes, and stick to tried-and-tested methods to grow wealth.
Ever encountered a financial scam in the wild? Share it with the community in the comments below so nobody else has to fall foul! And make sure you read the rest of my blogs to find out legitimate ways to get rich.
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