How to Avoid Popular Scams
In a world where nearly every aspect of your life is incorporated with technology or a third-party, you’re vulnerable to a plethora of scam attacks trying to steal your banking info, sensitive personal details, or possessions. In 2023, US fraud claims rose to over 2.6 million with an estimated $10 billion lost, according to the Federal Trade Commission. Listed below are some of the most common – and, unfortunately, successful – scams occurring today, alongside tips of what to do if you’re in that situation. By knowing what to look for, you can prevent yourself and others from falling victim.
Fake Fraud Alerts
Most people have fraud alerts turned on by default, with fraud notifications sent via a call, text, or email from your banking institution. If you receive one . . .
- Confirm that the communication is real. If you receive a call, let the call roll over to your voicemail, then call a verified number with the bank. If you accidentally answer, hang up and then call a verified phone number.
- Assume that the caller ID is showing incorrect information. If the caller, email, or text direct you to click a link or to call a different number, do not do so. Call a verified number with the bank.
- Never give out your financial info. Banks already have all the info they need, and they will not verify your identity by having you read back information. Confirmation is only done through one-time codes sent directly to you.
- Don’t act fast. Scammers often rush and make you think there’s an emergency or that you are in legal trouble. Simply hang up. Speaking to someone else about the situation can also help provide clarity.
Marketplace Scammers
With selling sites such as Facebook Marketplace and OfferUp becoming more and more popular, scammers have found easy targets in users who don’t know what to avoid. When buying or selling online, keep in mind these tips:
- Check the buyer’s or seller’s profile and see if it’s well-established. New profiles that have no friends, no posts or no realistic posts, and no history are more likely to be scammers. Also check their past transactions and reviews.
- Be wary of buyers who are not interested in the item’s condition or seeing it in person. Their target may be you instead of the item.
- Always meet in public locations. Do not give out your address or contact info. Only accept cash payments, as other methods do not provide the seller protections.
- Do not send money to someone as “a deposit” or “shipping warranty,” even if they promise to pay it back. You will not receive that money back.
- Use marketplaces with built-in protections, such as Etsy and eBay, who offer warranties in case of scams. Those marketplaces also handle the payments, so neither party receives payment information.
Scam Job Listings
With nearly all open jobs listed online, a surge of remote positions, and exposure to companies you’ve never heard of, it’s easy to fall into a trap posed by a fake employer. If a position you applied for seems sketchy, keep in mind the following:
- Investigate the employer yourself. If there are multiple websites for the same company, that’s a red flag. Check to see if they have reviews, social media, or an Employer Identification Number (EIN).
- Even if everything else seems legitimate, never send money or give bank account information to an employer, recruiter, or temp agency.
- Always insist on a face-to-face meeting, whether in-person or online. If the company contact refuses to do so, it is a scam.
Manipulative Promotions and Winnings
While everyone is hoping for a stroke of luck – seeing “You’re Our Lucky Winner!” is always exciting –what often seems like a great opportunity can just be a scam.
- Like the classic saying, if it seems too good to be true, it probably is, especially if you’re being pushed to decide or being told that “there’s no time to wait.” Same as with fraud alerts, do not rush to act. If you do decide to move forward with the purchase, read all the fine print. If the sellers rush you or try to dissuade you from doing so, that’s a red flag.
- Be wary of sweepstakes prizes. Even if the promoters disclose the odds, the chances of winning are incredibly slim.
- If you think you’ve fallen for a scam and you paid via credit card, dispute the charge with your credit card company ASAP. Victims often get their money refunded after a review.
- Submit record of the scam to your state’s Attorney General. Many AGs have web portals and hotlines for consumers to file complaints. Additionally, you can report the scam to your local police department, the Federal Trade Commission, and the Consumer Financial Protection Bureau. These agencies can assist with shutting down the scammer’s operation, saving others from falling into the same trap.
Source: Consumer Reports March 2025
