Learn About Email Scam Prevention Tips

Understanding What Email Scams Are and How They Work

Email scams, also called phishing scams or email fraud, are deceptive messages designed to trick you into revealing personal information, sending money, or installing harmful software. Scammers send millions of fraudulent emails each day, hoping that even a small percentage of people will fall for their tricks. According to the FBI's Internet Crime Complaint Center, phishing attacks were among the top cybercrime complaints in recent years, with reported losses in the hundreds of millions of dollars annually.

Get Your Free Chase Checking Account Information Guide →

The mechanics of an email scam are straightforward but effective. A scammer sends an email that appears to come from a legitimate organization—a bank, payment service, social media platform, or government agency. The email creates a sense of concern or urgency by claiming there's a problem with your account, an unusual transaction, a security threat, or a prize waiting for you. The message includes a link to click or an attachment to open. When you click the link, you're taken to a fake website that looks nearly identical to the real one, where you're prompted to enter your username, password, or financial information. Once scammers have this information, they can access your real accounts, steal your identity, or drain your bank account.

Understanding the psychology behind these scams is important. Scammers rely on creating emotional responses—fear about account security, excitement about winning something, or concern about a delivery issue. They count on people acting quickly without thinking carefully. They also take advantage of our trust in established companies and institutions. When an email appears to come from your bank, PayPal, Amazon, or the IRS, most people's instinct is to respond rather than question whether it's real.

Practical takeaway: Recognize that if you receive an unexpected email asking you to verify information or take action on your account, pause and verify it independently before responding. Contact the organization directly using a phone number or website you know is legitimate, rather than using contact information from the suspicious email.

Recognizing Red Flags and Warning Signs in Suspicious Emails

Learning to spot warning signs in emails is your first line of defense against scams. There are several consistent patterns that appear in fraudulent messages, though scammers continue to refine their tactics. The most common red flag is an unexpected request for sensitive information. No legitimate organization—not your bank, not PayPal, not the IRS—will ask you to provide passwords, Social Security numbers, credit card numbers, or other personal details via email. Banks and government agencies have secure methods for communicating with you about account issues, and those methods do not involve asking for sensitive information through email.

Get Your Free Guide to Paying Your Citi Credit Card Bill →

Examine the sender's email address carefully. Scammers often use email addresses that look similar to legitimate ones but aren't quite right. For example, they might use "paypa1.com" instead of "paypal.com," or "amaz0n-security.com" instead of "amazon.com." Legitimate companies use their official domain names. If you're uncertain about an email address, don't click any links in the message. Instead, open your web browser and go directly to the organization's website by typing the address yourself.

Poor grammar and spelling are often present in scam emails, though this is becoming less common as scammers improve their skills. Many scams originate from outside the United States, and translation tools may not catch every error. Look for awkward phrasing, inconsistent formatting, or unusual punctuation. Check the greeting line—legitimate companies usually address you by name, not with generic terms like "Dear Customer" or "Dear User."

Urgency-based language should raise your suspicion. Phrases like "your account will be closed," "verify immediately," "unusual activity detected," or "claim your prize before it expires" are designed to make you act without thinking. Real companies give you reasonable timeframes to address issues. Requests to click a link to prevent account closure, confirm identity, or claim a reward are classic scam tactics. Unexpected attachments are another warning sign—if you weren't expecting a file from someone, don't open it. Malicious attachments can install software that steals your information or locks your computer until you pay a ransom.

Practical takeaway: Before responding to any email requesting action or information, check the sender's email address, look for grammar errors, and consider whether the request makes sense. When in doubt, contact the organization using contact information from their official website or a billing statement.

Common Types of Email Scams and Specific Examples

Understanding the different categories of email scams helps you recognize them in your inbox. The phishing scam is the most common type. In a phishing attack, the scammer impersonates a trusted organization and sends an email claiming there's a problem requiring your attention. An example might be an email appearing to come from your bank saying "We detected suspicious activity on your account. Click here to review recent transactions and verify your identity." The link takes you to a fake banking website where your login information is harvested. Another example is an email from what appears to be PayPal claiming your payment method is expired and asking you to update it immediately.

Free Guide to Fast-Casual Mexican Restaurant Chains →

Business email compromise (BEC) scams target companies and their employees. These emails impersonate company executives or vendors and request wire transfers or sensitive information. For instance, a scammer might send an email appearing to come from the company's CEO asking the accounting department to wire funds for a business acquisition. These scams have resulted in billions of dollars in losses because they target people who regularly handle financial transactions.

Prize and lottery scams claim you've won something you never entered. An example email might say "Congratulations! You've won the Publisher's Clearing House grand prize. Click here to claim your $1 million prize." These scams prey on excitement and the human desire to win something valuable. The catch is that to receive your prize, you're asked to pay taxes, shipping fees, or processing costs upfront. No legitimate lottery requires you to pay money to claim winnings.

Romance scams develop relationships with targets through email and messaging, eventually requesting money for emergencies or travel. These scams often originate from dating websites or social media. The scammer builds trust over weeks or months before asking for financial help. Job offer scams target people searching for employment, offering high-paying work-from-home positions. Once victims accept, they're asked to purchase equipment or pay processing fees. When the "job" never materializes, the scammer has already collected payment.

Tax and government impersonation scams are particularly prevalent during tax season. The IRS does not initiate contact with taxpayers through email. A fraudulent email might claim you owe back taxes and threaten legal action if you don't pay immediately. Government scams may also impersonate Social Security Administration, claiming your benefits have been suspended, or the Department of Homeland Security, claiming your immigration status is at risk.

Practical takeaway: Remember that legitimate organizations rarely contact you first via email about account issues, prize winnings, or payment requirements. If you receive an unexpected email from any organization you have a relationship with, verify it through another channel before taking any action.

Steps to Take If You Suspect an Email Scam

Your response to a suspicious email matters. The first action is to not click any links, download any attachments, or reply to the message. Don't engage with the email in any way that might confirm to the scammer that your email address is active or monitored. Even clicking a link to unsubscribe from a scam email can flag your address as valid, leading to more scam attempts.

Learn About Depositing Money to Inmates Online →

Next, verify the email's legitimacy independently. Go directly to the organization's website by typing the address into your browser—don't use any links from the email. Call the company's customer service number from your billing statement or a phone directory. Describe what the email said and ask if they actually sent it. Legitimate companies appreciate when customers verify suspicious emails this way and can confirm whether the message came from them.

If you've already clicked a link or provided information, take immediate action. If you entered a password, change it right away from a secure computer. If you provided credit card information, contact your bank or credit card company immediately to report potential fraud. Your bank can monitor your account for unauthorized transactions and issue a new card if necessary. If you provided your Social Security number or other identity information, consider placing a fraud alert with the three major credit bureaus—Equifax, Experian, and TransUnion. A fraud alert makes it harder for someone to open accounts in your name.

Report the scam to appropriate authorities. Forward the phishing email to the organization being impersonated. Most companies have a dedicated email address for reporting phishing attempts—often abuse@comp