Investing in today’s digital world offers unparalleled convenience – but also exposes investors to unprecedented cyber risks. From fake trading platforms to phishing, scams and stolen credentials, cybercriminals are relentlessly targeting investors. Below, we explore the most pressing threats and provide practical protections – from multi-factor authentication to everyday vigilance – arming you against the hidden dangers of modern investing.
As investments increasingly rely on digital platforms, cybersecurity has become a cornerstone of financial safety. No investor is immune, which is why everyone should take cyber threats seriously and learn about the proven defenses that can keep their accounts secure.
Recent statistics show that both the number of cyber threats and the sophistication of attack methods continue to rise every year. The consequences are also becoming increasingly severe. According to the Federal Trade Commission, in 2024 alone, Americans lost $5.7 billion to investment scams – a 24% increase compared to the previous year. This represents more losses than from any other type of fraud. On average, each person who reported an investment scam lost over $9,0001.
All the more reason for anyone interested in investing to understand the evolving threat landscape. In an age where a single scam can cost thousands – or even more – being informed remains your first and strongest line of defense.
Common cyber threats targeting investors
1. Fabricated trading platforms
One of the most widespread threats facing investors today comes from fraudulent trading platforms – websites and mobile apps designed to mimic legitimate brokers. These platforms often look professional and convincing, complete with charts, account balances and even fake customer support. At first glance, some of them can be nearly indistinguishable from trusted services, which makes them especially dangerous.
Scammers lure victims into depositing funds, frequently displaying fabricated “profits” on screen to build trust and encourage larger investments. The illusion collapses when victims attempt to access their money – withdrawal requests are blocked, excuses follow and eventually the criminals vanish with the funds. Beyond financial loss, these scams also expose investors to identity theft. Many fraudulent platforms are designed to harvest sensitive information such as login credentials for legitimate platforms or payment card details, which can later be used for further attacks.
The deception is often sophisticated. Fraudsters copy logos, color schemes and layout designs of real brokers and platforms, sometimes even using fabricated endorsements from celebrities or luxury branding to create credibility. Still, subtle warning signs exist: misspelled URLs (e.g., InvestmnentPro.com instead of InvestmentPro.com), suspicious domain extensions (.net instead of .com) or slight design inconsistencies. Cybersecurity researchers reported blocking nearly 13,000 fake investment platform domains in January 2024 alone – a 25% increase compared to just one month earlier – highlighting the scale and fast-evolving character of this threat2.
2. Malicious links via email or text messages
Phishing remains one of the most common attack methods used by cybercriminals. Fraudsters send emails or text messages that mimic trusted institutions, urging recipients to click a link or download an attachment.
Victims may receive a message claiming that a payment was made on their account and must be verified or that urgent action is required due to “service issues”. These messages typically contain malicious links that redirect to fake login pages or install malware. Once users enter their credentials, scammers gain access to real accounts – often without immediate detection – and either exploit them directly or sell the stolen data on the dark web.
The global scale is staggering: more than 3.4 billion phishing emails are sent every single day3. In 2023, Kaspersky blocked 709 million phishing attempts – an increase of 40% compared to 20224. In the United States, phishing accounted for 36% of all data breaches that year. Criminals are also evolving their tactics: in early 2025, researchers recorded over 4.2 million phishing attempts involving QR codes, proving that even mobile authentication tools can be weaponized5.
3. Impersonation of financial advisors, experts and… CFOs
One of the most dangerous tactics in investment fraud is impersonation – where scammers position themselves as trusted financial advisors or company representatives via WhatsApp, Telegram, phone calls or social media. They exploit the allure of quick profits and exclusive investment opportunities, often presenting a veneer of legitimacy through polished presentations, cloned websites or fabricated credentials.
This threat has become more concerning with the widespread use of artificial intelligence. Fraudsters are leveraging AI tools to generate hyper-realistic deepfake videos and voice clones of financial experts, television anchors and even celebrities. JPMorgan notes that criminals now use AI to replicate the likeness and speech patterns of authority figures with alarming accuracy, making it far harder for victims to distinguish genuine advice from sophisticated deception. These tools allow scammers to create convincing video calls, fake “breaking news” clips or recorded endorsements that give the illusion of authenticity.
A notable real-world case underscoring this danger occurred in Hong Kong in early 2024. An employee at a multinational company participated in what appeared to be a legitimate video conference with their CFO and other familiar colleagues. In reality, every other participant on the call was an AI-generated deepfake. Convinced by the realistic visuals and voices, the employee executed 15 transfers of company funds, amounting to approximately HK$200 million – around US $25.6 million – before realizing the deception6. The attack exploited both technological manipulation and human trust, as the victims were reassured by the “presence” of known coworkers.
Such impersonation scams are particularly effective because they tap into primal trust signals – authority and familiarity. People naturally override skepticism when encountering someone who looks and talks like a respected or familiar figure. By merging social engineering with AI-generated authenticity, fraudsters produce a compelling illusion of legitimacy that is harder than ever to debunk.
As fraudsters continue to refine these techniques, vigilance is essential. Investors must scrutinize unsolicited offers, verify the identity of advisors through independent and official channels and remember that even a convincing “expert” may be nothing more than a digital mirage. The old rule of “trust but verify” has never been more important – especially in an era where trust itself can be artificially manufactured.
4. Impersonation of companies’ consultants
Recently, one of the most damaging types of fraud has been scammers impersonating consultants from banks, brokers, investment platforms or even law enforcement. Their strategy is simple: create a sense of urgency and pressure the victim into taking immediate action – often under the disguise of “protecting” their money. Victims may be told that their account has been hacked, that suspicious activity has been detected or that they must urgently move funds to a “safe” account. The goal is always the same: to exploit panic and trick individuals into handing over sensitive information or transferring money directly to the fraudsters.
This form of impersonation has exploded in recent years. According to the U.S. Federal Trade Commission (FTC), reports of impersonation scams have more than quadrupled since 2020. Scammers increasingly steal not just hundreds, but tens of thousands of dollars per victim, with some cases involving the loss of entire life savings. These scams often begin with a phone call, text message or email that appears convincingly legitimate – sometimes even displaying the spoofed caller ID of a real institution.
The impact is especially devastating for older adults. The FTC’s latest Consumer Protection Data Spotlight shows a huge rise in losses among people aged 60 and over. Combined losses reported by this group in cases where individuals lost more than $100,000 surged from $55 million in 2020 to $445 million in 2024 – an eightfold increase in just four years! While younger consumers also fall victim, older adults are far more likely to report such extraordinarily high losses, often wiping out retirement funds or emergency savings8.
The techniques behind these scams are also becoming more advanced. Criminals employ caller ID spoofing, cloned websites and professional-looking emails that make it nearly impossible to distinguish genuine communication from fraudulent attempts. Increasingly, artificial intelligence is being used to mimic the tone, style and even voices of real consultants or officials, amplifying credibility and making it harder for victims to recognize the con.
What makes this tactic especially effective is the emotional manipulation at its core. By warning of imminent financial loss, scammers override rational decision-making and push victims into hurried compliance. Once transfers are made, the money is gone and – in most cases – untraceable.
The best defense against consultant impersonation is caution. No legitimate financial professional will ever demand immediate transfers, request full credit card details or instruct you to install remote-access software. If you receive such a request – whether from a supposed bank, broker or even “the police” – the safest response is to pause, hang up and contact the organization directly through official, published channels. Taking a few extra minutes to verify can prevent devastating, life-altering losses.
5. Pretending to be a friend in need
Not all cybercriminals claim to be professionals; at times, they pose as someone you know. In these so-called “friend-in-need” scams, fraudsters exploit personal trust to manipulate victims into sending money. A message may come from a hacked email account, a hijacked social media profile or even a spoofed phone number that appears identical to one saved in your contacts. The story is always urgent: a lost phone, a broken car, a blocked bank card or a sudden medical emergency. By appealing to empathy and pressuring for immediate action, scammers bypass rational caution and push victims to transfer funds without question.
This type of fraud is both widespread and costly. Action Fraud, the UK’s national reporting centre for fraud and cyber crime, recorded more than £1.5 million lost in “friend-in-need” scams carried out through WhatsApp in just under five months. Across 1,235 incidents, fraudsters – often posing as a family member and beginning conversations with “Hello Mum” or “Hi Dad” – claimed they were using a new number after their phone was lost or damaged, then asked for money to pay for a replacement or settle an urgent bill9.
The tactics are also evolving as technology advances. Scammers can now spoof phone numbers, making it appear that a text or call is coming directly from a trusted contact. This illusion of legitimacy dramatically increases the success rate of deception. Even more concerning is the use of AI voice cloning to replicate the speech of loved ones. In 2023, police in Long Island reported more than 3,000 cases of “grandchild-in-need” scams, where fraudsters used AI-generated voices – often scraped from TikTok or other social media platforms – to plead for urgent money transfers. Losses in that region alone exceeded $126 million10.
Although at first glance this form of fraud may seem unrelated to investing or financial accounts, it can serve as a gateway for attackers. A scammer posing as a friend may ask for a money transfer, during which the victim unwittingly provides a one-time code or authentication token. In reality, that code could authorize the transfer of all funds from an investment account to the fraudsters, leaving the victim believing they were simply helping a friend with a small expense.
The effectiveness of these scams lies in their exploitation of human instincts: empathy, loyalty and fear of failing a loved one. A parent hearing what sounds like their child’s desperate voice or a friend receiving a late-night plea for help is unlikely to pause and verify. Criminals exploit this hesitation gap to move funds quickly, often through cryptocurrency wallets or offshore accounts that make recovery nearly impossible.
Defending against such threats requires deliberate skepticism. Before responding to urgent requests – even from seemingly familiar sources – pause to verify. Call the person back using a known number, ask a question only they would know or establish a family passphrase for emergencies. In today’s digital environment, even a familiar phone number or recognizable voice can be faked. Taking a moment to verify can mean the difference between safeguarding your money and becoming the next victim of a well-rehearsed scam.
Universal rules of how to secure your investment account
The threats outlined above are not abstract – they are real dangers capable of draining your life savings in just minutes. Does this mean the safest strategy is to bury your money in the backyard? Of course not. Even as cyber threats grow more sophisticated each year, the core principles of digital self-defense remain simple and highly effective. By applying them consistently, you can greatly reduce your risk and keep your investment account secure.
Step 1: Choose trusted, regulated platforms
Every secure investment journey begins with choosing the right provider. Always work with platforms that are established, regulated and have a long-standing reputation in the industry. Fraudsters frequently set up fake brokers or unregulated offshore entities that vanish once funds are transferred. By sticking to providers supervised by recognized financial authorities, you significantly reduce the risk of fraud.
Step 2: Verify websites and communications
Before creating an account, ensure you are on the official website. Pay attention to details: domains with typos (e.g., lnvestment.com with “l” (lowercase L) instead of “I” (uppercase i) at the beginning), unusual endings (.co instead of .com) or slightly altered designs are common tactics in phishing.
Criminals increasingly use SSL certificates to make fraudulent sites appear secure. Similarly, scrutinize emails and messages – if in doubt, confirm directly with the institution using official contact details.
Step 3: Create strong, unique passwords
When setting up your account, avoid reusing old credentials. Cybersecurity research shows that 94% (!) of users reuse passwords across services, which dramatically increases exposure: a breach in one platform can unlock many others. Instead, use a password manager to generate and securely store complex, unique passwords. This simple step eliminates one of the most common attack vectors.
Step 4: Enable Multi-Factor Authentication (MFA)
Once your password is set, immediately enable Multi-Factor Authentication (MFA). According to Microsoft, MFA reduces the likelihood of account compromise by 99.2%, and over 99.99% of MFA-enabled accounts remain secure even when credentials are exposed. Whenever possible, use authenticator apps or hardware keys rather than SMS codes, which can be intercepted through SIM-swapping attacks. MFA is one of the most powerful defenses available to investors.
Step 5: Access only through secure devices and networks
When logging into your account, use personal devices that are regularly updated and protected by antivirus software. Avoid accessing investment platforms on public Wi-Fi networks in cafés, airports or hotels as these are prime targets for cybercriminals. Shared computers, such as those in libraries or offices, may also store cookies or credentials creating long-term vulnerabilities.
Step 6: Monitor accounts and enable alerts
Once your account is active, staying vigilant is essential. Set up real-time alerts for logins, transfers and profile changes. Regularly review account activity to spot suspicious behavior early. The faster a victim reacts and reports a scam, the greater the chances of stopping fraudulent activity and minimizing its impact.
Step 7: Keep software and devices updated
Cybercriminals often exploit known vulnerabilities in outdated software. Protect yourself by promptly installing updates for your operating system, trading apps, browsers and security tools. Automated updates are the best safeguard, ensuring that patches are applied before attackers can take advantage of weaknesses.
And finally… you will be fine!
Cybercriminals will continue to exploit technology and human trust, but you are not powerless. By combining technical safeguards with a healthy dose of skepticism, you can transform yourself from an easy target into a difficult one. In today’s investment landscape, security is not a one-time decision but an ongoing habit – and the more disciplined you are, the safer your financial future will be.
FAQ
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Why is cybersecurity so important for investors today?
Since most investing now happens online, strong cybersecurity is essential to protect the security of your investment account. Scammers are constantly inventing new digital tricks, from phishing to fake platforms, and without proper protection the safety of money can be compromised in minutes.
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What are the most common scams targeting investors?
The most frequent scams include fake trading platforms, phishing emails or texts with malicious links and impersonation of financial advisors or company consultants. Scammers use these tactics to carry out fraudulent activities, aiming to steal login data, block withdrawals or convince victims to transfer money directly to them.
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How can I improve the security of my investment account?
To ensure the safety of money, always use trusted and regulated platforms, verify websites and communications, create strong unique passwords and enable multi-factor authentication. Monitoring accounts with real-time alerts and keeping software updated are also crucial steps to reduce exposure to scams. We also suggest using password managers.
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What should I do if I suspect fraudulent activities on my account?
If you notice suspicious logins, blocked money withdrawals or unusual messages, act immediately: stop transactions, contact your provider through official channels and report the potential scam. Quick action can minimize losses and prevent scammers from gaining full access to your funds.
1 https://www.cnbc.com/2025/03/15/investment-fraud-how-to-protect-yourself.html
2 https://www.netcraft.com/blog/inside-a-fake-trading-platform
3 https://controld.com/blog/phishing-statistics-industry-trends
4 https://www.kaspersky.com/about/press-releases/kaspersky-reports-phishing-attacks-grow-by-40-percent-in-2023
5 https://www.thescottishsun.co.uk/tech/15221735/bank-emptying-email-con/
6 https://edition.cnn.com/2024/02/04/asia/deepfake-cfo-scam-hong-kong-intl-hnk
7 https://www.ftc.gov/news-events/news/press-releases/2025/08/ftc-data-show-more-four-fold-increase-reports-impersonation-scammers-stealing-tens-even-hundreds
8 https://www.ftc.gov/news-events/news/press-releases/2025/08/ftc-data-show-more-four-fold-increase-reports-impersonation-scammers-stealing-tens-even-hundreds
9 https://www.actionfraud.police.uk/alert/friendinneed
10 https://nypost.com/2025/05/23/us-news/long-island-officials-warn-new-scam-uses-tiktok-and-ai-simulated-voices-to-impersonate-grandkids-and-rip-off-seniors
11 https://www.businesstechweekly.com/technology-news/password-security-crisis-alarming-rise-in-password-reuse-among-users-in-2025/?utm_source=chatgpt.com
12 https://windowsreport.com/microsoft-azure-will-introduce-mandatory-multi-factor-authentication-mfa-in-a-bid-to-stop-cyberattacks
13 https://learn.microsoft.com/en-us/partner-center/security/security-at-your-organization