Scams & Fraud

Scammers don't need to hack anything if they can talk you into sending the money. Learn the handful of tricks nearly every scam uses.

Last reviewed October 2026

Fraud by the Numbers

Reported losses for 2025. Most scams are never reported, so the real totals are higher.

$15.9B

Reported lost to fraud

From about 3 million fraud reports to the FTC in 2025 - up from over $12 billion the year before.

Source: FTC, March 2026

$7.9B

Lost to investment scams

The most money lost to any single type of scam - often fake crypto or trading platforms promising big returns.

Source: FTC, March 2026

1M+

Imposter scam reports

Someone pretending to be a business, the government, or a friend. The most common type reported every year since 2020, with $3.5 billion lost in 2025.

Source: FTC, June 2026

$20.8B

Internet crime reported to the FBI

A separate count from the FBI's Internet Crime Complaint Center, up 26% from 2024. Investment fraud, mostly crypto, was again the costliest.

Source: FBI IC3 2025 report

Common Scams

The stories change, but these seven cover most of what people run into.

Imposters

A call, text, or email "from" the IRS, Social Security, your bank, Amazon, or a relative in trouble. There's always an urgent problem only money can fix. Real government agencies don't demand payment by gift card, crypto, or wire transfer, and the IRS usually contacts you by mail first. Caller ID and email names are easy to fake.

Investment and crypto scams

Guaranteed returns, "risk-free" trading, a coach on social media. Often a fake app shows your balance growing so you send more - until you try to withdraw. Real investments never guarantee high returns. Stick to brokerages you can look up on FINRA BrokerCheck; see Investing Basics for how real investing works.

Romance and "wrong number" scams

Someone you've only met online - or who texted the "wrong number" and stayed friendly - builds trust for weeks, then needs money for an emergency or offers to teach you to invest. Sometimes called pig butchering. If you've never met in person and they bring up money, stop.

Phishing texts and emails

"Your package couldn't be delivered." "Unpaid toll." "Unusual sign-in on your account." The link goes to a fake login page that steals your password or card number. Don't tap links in messages you didn't expect - go to the app or type the website address yourself.

Fake checks and job offers

You're sent a check - for a job, an online sale, a prize - for more than you're owed and asked to send back the difference. Banks make deposited money available within days, but a fake check can bounce weeks later, and you owe the bank the full amount. A real employer never asks you to pay for equipment or training up front.

Tech support and account takeover

A pop-up says your computer is infected and to call a number, or "your bank's fraud team" asks you to read back a code they just texted you. That code is the key to your account. No real company needs your one-time passcode or remote access to your computer to help you.

"Insider tip" stock schemes

A stranger, a social media "guru," or a group chat on WhatsApp, Telegram, or Discord says they have inside information: a tiny stock is about to jump, executives are quietly buying, buy before the news hits. Often it's a pump and dump - the promoters already own the stock, the hype pushes the price up, and they sell to the people who just bought, leaving them with shares that crash. It works best on small, thinly traded stocks, where a little buying moves the price a lot. Other versions charge a fee to join a "VIP" tips group or steer you to a fake trading app. Two things to know: real insider trades are public anyway - executives have to report them to the SEC, and you can see them for free in Company Lookup - and anyone who really had secret information wouldn't be sharing it with strangers, since trading on it is illegal.

The Red Flags They Share

Different stories, same playbook. Any one of these is a reason to stop and check.

Red flag	What it sounds like	Why it matters
How they want to be paid
Gift cards	"Buy Apple or Target cards and read me the numbers."	No legitimate business or agency takes payment this way. Once the numbers are shared, the money is gone.
Crypto, wires, payment apps	"Deposit cash at this crypto ATM." "Send it by Zelle to keep it safe."	These payments are fast and very hard to reverse. Credit cards have much stronger dispute rights.
How they pressure you
Urgency	"Act now or you'll be arrested / lose your account / miss out."	Rushing you stops you from thinking or asking anyone. Real problems can wait for you to call back.
Secrecy	"Don't tell the bank teller what it's for." "Keep this between us."	They know a teller, friend, or family member would spot the scam.
Staying on the line	"Don't hang up - I'll stay with you while you go to the bank."	Hanging up lets you check the story. A real agent won't mind.
What they promise or ask for
Too good to be true	"Guaranteed 20% a month." "You won - just pay the fees."	Real investments carry risk, and real prizes don't cost money to claim.
Codes and passwords	"Read me the code we just sent to verify it's you."	A one-time code lets them into your account. Your bank will never ask for it.
Unexpected contact	A call, text, or DM you didn't ask for about money	Hang up and contact the company yourself, using the number on your card or its official website.

Protect Yourself - and What to Do If It Happens

A few one-time steps block most fraud. If a scam gets through anyway, speed matters.

Before: lock things down

Freeze your credit at Equifax, Experian, and TransUnion. It's free, doesn't affect your score, and stops anyone opening accounts in your name. See Credit Score.
Turn on two-step verification for email, banking, and payment apps - an authenticator app is safer than text messages.
Use a password manager so every account has its own strong password. One leaked password then can't unlock everything.
Set up account alerts for every card and bank transaction, so you see fraud within minutes instead of at the end of the month.
Agree on a family "safe word" for emergency calls, since voices can now be faked with AI.
Check your credit reports for free at AnnualCreditReport.com.

After: act fast

Stop paying and stop talking to them. Don't send more money to "unlock" a withdrawal or cover fees.
Call your bank or card issuer right away, using the number on your card. Card charges can usually be disputed; wires and payment-app transfers are harder, but the sooner you call, the better the chance.
Change your passwords - starting with your email - and turn on two-step verification.
Report it at ReportFraud.ftc.gov, and online crimes to the FBI at ic3.gov.
If your identity was stolen, get a recovery plan at IdentityTheft.gov and freeze your credit.
Watch for "recovery" scams. Anyone who promises to get your money back for a fee is usually the next scam.

Key Terms

The words you'll see in fraud warnings and on your bank's security pages.

Tricks

Phishing: A fake message meant to get you to click a link or share information. By text it's "smishing," by phone "vishing."
Spoofing: Faking a phone number, email address, or website so it looks like it comes from someone you trust.
Pig butchering: A long con where a scammer builds a friendship or romance, then steers the victim into a fake investment.

What gets stolen

Identity theft: Someone using your personal information, like your Social Security number, to open accounts or file taxes in your name.
Account takeover: A scammer gets into an account you already have, often with a stolen password or a one-time code you were tricked into sharing.
Authorized payment: A payment you made yourself, even if you were tricked. Banks are often less able to refund these than charges you never made.

Your defenses

Credit freeze: Blocks new credit in your name until you lift it. Free, and done separately at each of the three bureaus.
Fraud alert: A note on your credit report telling lenders to verify it's you. Free, lasts a year, and placing it at one bureau notifies the other two.
Two-step verification: A second check, like a code from an app, on top of your password. Also called two-factor authentication (2FA).