Learn About Common Scams and How to Protect Yourself

Understanding What Scams Are and How They Work

A scam is when someone tries to trick you into giving them money, personal information, or access to your accounts through deception. Scammers use various tactics to make their schemes seem real and trustworthy. They might create fake websites that look identical to legitimate companies, send emails pretending to be from your bank, or call claiming to be from a government agency. The goal is always the same: to steal from you.

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Scams have become increasingly sophisticated. In 2023, the Federal Trade Commission (FTC) reported that Americans lost over $10 billion to fraud, with scam reports increasing by 30% from the previous year. This means scams are more common than many people realize, and they affect people of all ages, education levels, and income brackets.

Understanding how scammers think is your first line of defense. Most scams work by creating a sense of pressure or panic. A scammer might claim your account is compromised and you need to act right away. They might offer something that sounds too good to be true—like a job that pays $5,000 per week for minimal work. Or they exploit emotions by pretending to be a family member in crisis who needs money urgently.

Scammers often use psychological manipulation rather than technical skill. They research their targets by looking at social media profiles, public records, or information leaked from data breaches. They then use personal details to build trust before asking for money or sensitive information. Some scammers work in organized groups, with different people handling different parts of the scheme.

Practical takeaway: Remember that legitimate organizations never ask for passwords, Social Security numbers, or payment through untraceable methods like gift cards or wire transfers. If something feels off or pressured, pause and verify through official channels before responding.

Common Types of Scams You Should Know About

Phishing scams are among the most widespread. These occur when someone sends you an email, text message, or creates a fake website designed to look like it's from your bank, an online retailer, or another trusted organization. The message typically contains a link that takes you to a fake website. When you enter your login information or personal details, the scammer captures everything. According to the Anti-Phishing Working Group, there were over 4.7 million phishing attacks reported in 2023.

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Romance scams target people seeking relationships online. A scammer creates a fake profile, builds an emotional connection over weeks or months, then claims to have an emergency—a medical bill, travel costs, or a business problem. They ask the victim to send money. Victims of romance scams reported losing an average of $2,000 per person in 2023. What makes these scams particularly damaging is the emotional investment involved, which makes victims more likely to overlook warning signs.

Tech support scams involve fake pop-ups on your computer or phone that claim your device has a virus or security problem. The scammer's message instructs you to call a number. When you call, they convince you to pay for "repairs" or to grant them remote access to your device. Once they have access, they can install malware, steal passwords, or lock your device until you pay ransom.

Government impersonation scams are particularly effective because they trigger fear. Scammers claim to be from the IRS, Social Security Administration, or immigration services. They threaten arrest, deportation, or benefit loss unless you pay immediately. These scams are effective because people fear government agencies and assume the communication must be real. The FTC reported over 155,000 government impersonation scam complaints in a recent year.

Other common scams include job offer scams (fake job postings asking for upfront fees or personal information), lottery or prize scams (claiming you won something you never entered), investment scams (promising unrealistic returns), and grandparent scams (impersonating a grandchild in crisis). Advance-fee scams ask you to pay money upfront to receive a larger sum later—money that never comes.

Practical takeaway: Create a mental checklist for each type: phishing asks for login info through fake links; romance scams build emotional connections before asking for money; tech support scams claim urgency and create fear; government scams use authority and threats. Recognizing the pattern helps you spot scams early.

Red Flags and Warning Signs to Watch For

One of the most reliable warning signs is pressure to act without thinking. Scammers often create artificial urgency by saying "your account will be closed," "this offer expires today," or "you must respond within the hour." Legitimate organizations understand that important matters sometimes take time and won't pressure you into making quick decisions about sensitive information or money.

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Requests for payment through untraceable methods are almost always scams. If someone asks you to pay through gift cards (iTunes, Google Play, Amazon), wire transfer services (Western Union, MoneyGram), cryptocurrency, or prepaid debit cards, this is a major warning sign. These payment methods are nearly impossible to reverse, which is why scammers prefer them. Banks and legitimate companies never ask for payment this way.

Spelling and grammar errors in official-looking messages are common red flags. While not every error indicates a scam, legitimate companies typically have quality control processes. If an email supposedly from your bank contains multiple mistakes, it's likely fake. Similarly, suspicious email addresses that look almost—but not quite—like the real company are a sign of phishing attempts.

Requests for personal information through unsecured channels should raise concerns. Your bank, insurance company, or government agency will not ask you to confirm your Social Security number, date of birth, account numbers, or passwords through email or text. These organizations already have this information and wouldn't need you to provide it this way. Legitimate verification through official phone lines is different from responding to unsolicited contact.

Too-good-to-be-true offers are common scam indicators. If someone offers you a high-paying job with minimal qualifications or experience, a loan with no credit check, or an investment guaranteed to return 50% annually, these are unrealistic. Legitimate job opportunities require appropriate qualifications. Real loans involve credit checks and risk assessment. Real investments carry realistic risks and returns.

Unexpected contact about accounts you don't have or problems you're unaware of is suspicious. If you receive a call about a delivery you didn't order, a bill you don't recognize, or a lottery you didn't enter, pause before taking action. Scammers hope you'll respond emotionally or with confusion.

Practical takeaway: Before responding to any unexpected communication about money or personal information, contact the organization directly using a phone number or website you already know to be real. Don't use contact information provided in the suspicious message itself.

Steps to Protect Your Personal Information

Strong passwords are your first line of defense against unauthorized access. A strong password contains at least 12 characters and includes uppercase letters, lowercase letters, numbers, and symbols. More importantly, use different passwords for different accounts. If one password is compromised, scammers won't have access to all your accounts. Password managers (like Bitwarden, 1Password, or KeePass) can store complex passwords securely so you only need to remember one master password.

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Two-factor authentication (often called 2FA) adds a second layer of security. With 2FA enabled, even if someone has your password, they can't access your account without a second verification—usually a code sent to your phone or generated by an app. This feature is available for email accounts, banking, social media, and other important accounts. While 2FA takes an extra moment to set up and use, it dramatically reduces the risk of unauthorized access.

Monitor your accounts regularly for suspicious activity. Check your bank and credit card statements at least monthly for charges you don't recognize. Review your credit report annually—you can request free reports at annualcreditreport.com. If you notice fraudulent charges, report them to your financial institution immediately. Most banks offer fraud protection and will investigate disputed charges.

Be cautious about what you share on social media. Scammers use public information like your birthday, hometown, family member names, pet names, and vacation plans to either target you directly or answer security questions. Review your privacy settings regularly and limit who can see your information. Avoid posting real-time location information or announcements that you'll be away from home.

Protect your Social Security number carefully. Only provide it when absolutely necessary—for employment, banking