Learn About Common Scams and How To Protect Yourself

Understanding the Most Common Scams Today

Scams affect millions of people each year across all age groups and income levels. According to the Federal Trade Commission (FTC), Americans reported losing over $8.8 billion to fraud in 2022 alone, with that number climbing to over $10 billion in 2023. The most frequently reported scams include phishing emails, phone call fraud, romance scams, and impersonation schemes. Understanding what these scams look like helps you recognize warning signs before you lose money or personal information.

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Phishing scams represent one of the largest categories of fraud. These involve fake emails, text messages, or websites designed to look like they come from legitimate companies—your bank, PayPal, Amazon, or the IRS. The message typically creates a sense of urgency, claiming your account has been compromised or that you need to verify information. When you click the link or provide your details, scammers capture your passwords and personal information. The FTC reports that phishing losses increased by over 700% between 2020 and 2021.

Phone scams remain extremely common. Scammers call pretending to be from the IRS, Social Security Administration, tech support services, or utility companies. They may threaten you with arrest, claim your Social Security number has been suspended, or say your computer has a virus. A real government agency will not call you demanding payment or threatening arrest over the phone. Tech support scams are particularly effective because they target people's genuine concern about computer security—scammers may convince you to install software that gives them access to your entire computer.

Romance scams involve criminals building fake relationships with victims online to extract money. According to the FTC, romance scams resulted in over $1.3 billion in losses in 2022. The scammer creates an appealing online profile, develops an emotional connection with you over weeks or months, then creates a crisis (medical emergency, business problem, travel accident) requiring money. By the time the victim realizes they've been deceived, thousands of dollars have been transferred.

Practical Takeaway: Create a personal scam awareness checklist. Write down the common red flags: unsolicited contact, requests for money or personal information, threats, pressure to act quickly, and requests to keep the communication secret. Reference this list whenever you receive unexpected contact from someone claiming to represent a company or organization.

How Scammers Target Vulnerable Groups

While scams affect people of all backgrounds, certain populations face higher risks. Older adults, in particular, lose significant amounts to fraud. According to the U.S. Senate Special Committee on Aging, seniors lose an estimated $36.5 billion annually to scams. This happens partly because scammers specifically target this group, believing older adults may be less familiar with digital technology and more trusting. However, scams also target young people, immigrants, people with limited English proficiency, and those going through financial difficulty.

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Elderly individuals face specific types of scams at higher rates. Grandparent scams exploit family relationships—a scammer calls claiming to be a grandchild in emergency needing money wired immediately, often in another country. Tech support scams specifically target older adults who may have less confidence with computers. Lottery and prize scams tell recipients they've won something they never entered, playing on hope and excitement. Medicare scams impersonate the government program, asking for personal information or money for coverage.

Young adults and teenagers face different scams. They may encounter sextortion scams, where someone claims to have compromising images and threatens to share them unless money is paid (often the scammer has nothing). College-aged people are targeted with rental scams—fake listings for apartments at suspiciously low prices designed to collect deposits. Young people are also more likely to be targeted by cryptocurrency and investment scams promising unrealistic returns.

Immigrants and non-English speakers face scams that exploit their unfamiliarity with how systems work in their new country. They may be targeted with fake immigration assistance scams, fake job offers, or scams impersonating their country's government agencies. Scammers may speak their language and understand their cultural background, making deception easier. People in financial crisis are targeted with payday loan scams, debt relief scams, and fake business opportunity scams that promise income but require upfront fees.

Practical Takeaway: If you know someone in a potentially vulnerable group—an elderly relative, a young person new to online banking, an immigrant family member—have a conversation about scams they might encounter. Share specific examples. Establish a system where they can contact you to verify requests before sending money. For example, agree that you'll always verify unusual requests in person or through a known phone number.

Recognizing Red Flags and Warning Signs

Learning to spot red flags is one of your most effective defenses against scams. Legitimate organizations and businesses operate in predictable ways. When communication deviates from normal patterns, scammers are often involved. The more warning signs present in a single situation, the higher the likelihood of fraud.

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Unexpected contact requesting money or personal information is a primary red flag. Legitimate companies you do business with already have your information. They don't need you to verify it by clicking links in emails or texts. Real banks will not ask you to provide passwords, PIN numbers, or full Social Security numbers via email. If you receive such a request, contact the organization directly using a phone number or website you know is legitimate—not contact information provided in the suspicious message.

Pressure to act quickly is a hallmark of scams. Scammers create artificial urgency: "Your account will be closed in 24 hours," "Verify now or lose access," "Limited spots remaining," "This offer expires today." Legitimate businesses give you time to make decisions. Real government agencies don't threaten arrest or threaten to suspend benefits without proper legal notice and multiple contact attempts. If someone pressures you to act within minutes or hours, that's a warning sign.

Requests for payment through unusual methods indicate fraud. Legitimate businesses accept credit cards, checks, or electronic transfers through established banking systems. Scammers request payment through wire transfers, gift cards, cryptocurrency, or cash delivery services because these methods are nearly impossible to reverse. If someone says "Pay me through Amazon gift cards," "Send Bitcoin," or "Wire money to this account," those are major red flags. Similarly, if someone asks you to keep the transaction secret or tells you not to tell your bank, that's fraud.

Poor grammar, spelling errors, and awkward phrasing appear frequently in scam communications. While not every message with errors is a scam, and some scammers write well, these mistakes are common. Legitimate companies employ people who check communication before sending. An email supposedly from your bank with multiple spelling errors is suspicious.

Requests for information you wouldn't normally share are red flags. Legitimate companies don't ask for your Social Security number via email, your PIN via text, or your banking passwords over the phone. They don't ask for photos of your ID, driver's license, or credit cards. If someone requests this information through unsolicited contact, it's a scam.

Practical Takeaway: When you receive unsolicited contact, follow the "Stop, Verify, Confirm" method. Stop—pause before responding or clicking anything. Verify—contact the organization directly using a phone number or website you know is real (not from the message you received). Confirm—ask if they actually sent that message. This three-step process catches most scams.

Protecting Your Personal Information Online

Your personal information is valuable to scammers. A single data breach or careless sharing of details can lead to identity theft, unauthorized accounts opened in your name, or fraud charges. Protecting this information requires both good habits and understanding how information moves online.

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Create strong, unique passwords for every account you maintain. A strong password contains at least 12 characters mixing uppercase and lowercase letters, numbers, and symbols. Avoid using personal information (birthdates, names, addresses), dictionary words, or predictable patterns. Using the same password across multiple accounts is dangerous—if one account is compromised, all accounts become vulnerable. Consider using a password manager (software that securely stores passwords) to keep track of different passwords without writing them down. Well-known options include Bitwarden, 1Password, and LastPass.

Enable two-factor authentication (2FA) wherever available. Two-factor authentication requires two forms of identification to access an account—usually your password plus a code sent to your phone or generated by an app. Even if a scammer obtains your password, they