Financial scams are more common—and more sophisticated—than ever. From phishing emails and fake investment opportunities to phone calls from “government agents,” scammers use a variety of tactics to trick people into giving up their money or personal information. Whether online or offline, these frauds can be financially and emotionally devastating. The good news is that with a little awareness and a few protective habits, you can spot the red flags early and keep your finances safe.
Here’s a look at some of the most common financial scams and practical steps you can take to avoid falling victim.
Phishing and Email Scams
Phishing scams typically arrive as emails that look like they’re from a trusted source—your bank, a delivery service, or even the IRS. These emails often ask you to click a link or download an attachment, which can lead to identity theft or malware. Some may even direct you to a fake login page to steal your account credentials.
Red flags to watch for:
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Poor spelling or grammar
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A sense of urgency (“Your account will be locked in 24 hours”)
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Suspicious links or attachments
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Requests for personal or financial information
How to stay safe:
Don’t click links or download files from unexpected emails. Always check the sender’s email address carefully and log in to your accounts directly from the official website—not through a link in an email. If in doubt, contact the company using verified contact information.
Phone Scams and Impersonators
Phone scammers often pose as government agents, utility companies, or tech support reps. They may claim you owe money, have a virus on your computer, or need to verify account information. These callers can sound convincing, and some even spoof legitimate phone numbers to seem more credible.
Red flags to watch for:
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Threats of arrest, fines, or account suspension
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Requests for payment via gift cards, wire transfers, or cryptocurrency
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Calls from unfamiliar numbers claiming to be urgent or official
How to stay safe:
Hang up if something feels off. Government agencies like the IRS or police will never demand immediate payment over the phone. If you think the call might be legitimate, contact the organization directly using their official phone number.
Online Marketplace and Payment Scams
Scammers often target people buying or selling goods through sites like Facebook Marketplace, Craigslist, or classified apps. They might offer overpayment “by mistake,” send fake checks, or ask to move the transaction off the platform.
Red flags to watch for:
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Buyers who rush or pressure you to ship items quickly
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Sellers asking for payment via untraceable methods (like Zelle or Venmo for goods)
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“Too good to be true” prices or deals
How to stay safe:
Stick to well-known platforms with buyer/seller protections. Avoid accepting checks, and never send money before seeing the product. Meet in safe, public places if exchanging items in person.
Investment and Cryptocurrency Scams
With the rise of online investing and cryptocurrency, scam artists have found new ways to promise big returns. These schemes often take the form of fake platforms, Ponzi schemes, or “get rich quick” tips from social media influencers or strangers online.
Red flags to watch for:
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Guaranteed returns or no-risk investments
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Unsolicited messages or emails from strangers promising money-making opportunities
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Pressure to act fast or keep the opportunity secret
How to stay safe:
Research any investment opportunity thoroughly. Never invest money you can’t afford to lose, and be skeptical of promises that seem too good to be true. Check whether the person or company is registered with a financial authority like FINRA or the SEC.
Check Scams and Overpayment Frauds
In a classic overpayment scam, someone sends you a check for more than the agreed amount and asks you to refund the difference. Once you send the money, you find out the check was fake—and you’re on the hook for the entire amount.
Red flags to watch for:
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Unexpected checks in the mail
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Requests to send back part of the money
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Pressure to act quickly before the check clears
How to stay safe:
Never deposit a check from someone you don’t know or trust. If you do receive a check, wait until it clears (which can take weeks) before spending any of the money.
Protecting Yourself: Best Practices
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Use strong, unique passwords for each financial account.
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Enable two-factor authentication whenever possible.
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Regularly check your bank and credit card statements for suspicious activity.
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Monitor your credit reports and consider using a credit freeze if you’re not actively applying for loans.
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Report scams to the FTC, your local authorities, or the Canadian Anti-Fraud Centre if you’re in Canada.
Stay One Step Ahead of Scammers
Scammers are constantly coming up with new tricks, but most follow predictable patterns—urgency, secrecy, and requests for personal or financial information. By staying alert, trusting your instincts, and practicing good digital hygiene, you can avoid common traps and protect your money and identity. The more you know, the harder you are to fool.