Online Shopping Scams

Scammers develop fake websites mimicking popular retailers’ sites and take your money and payment information without delivering products. They also create counterfeit apps containing malware (malicious software) for the same reasons. Be sure to read refund and return policies prior to making a purchase. If your order didn’t arrive or your refund request is denied, dispute the charges. Using a credit card for online purchases can make the dispute process much easier. Watch out for bogus websites and suspicious apps and only use official retailer websites and apps, which may offer stronger security. Also, monitor your credit and debit card transactions on a regular basis to increase the chance of spotting unauthorized purchases or withdrawals in the early stage of this fraud.

Prizes, Sweepstakes, and Lotteries

Scammers may contact you claiming you won a prize, sweepstake, or lottery and then ask for money or your account information to cover taxes and other fees upfront. They might pretend to be from government agencies or claim you’ve won a foreign lottery, which is almost certainly a scam. Remember, government agencies do not call to demand money or your financial information to collect a prize. Also, real sweepstakes are free and by chance. If you did not enter a lottery or sweepstakes or are unsure about the call, message, email, or letter. DO NOT send money or share your information.

Investment Fraud

There are various types of investment fraud, including Ponzi schemes and pyramid scams. A Ponzi scheme is a fraudulent investment scam that pays earnings to earlier investors with money from new investors – similar to a pyramid scam. In many cases, scammers promise high investment returns without making an actual investment. Though they are called by different names, most investment scams share the same characteristics, such as guaranteed high returns with no risk and high-pressure sales tactics. Be on guard. Fraudsters often avoid putting the details about the investment in writing or call them confidential. If this is the case for you, consult with fiduciary financial advisors or just walk away. DO NOT rush into an investment opportunity without your own independent research. Talking with people you trust can help you see the offer more clearly.

Business and Job Opportunity Scams

Job and business opportunities that sound too good to be true, often are. If the message promotes doing minimal work with a high salary, pledging guaranteed income, or a proven business operation system, it is likely a scam. Take your time and get a second opinion or talk to someone who has your best interests in mind. Before accepting a job offer, know that honest employers, including the federal government, will not ask for payment for the promise of a job. Before paying for a business opportunity, research the seller, the company, and the coach’s credentials, and ask for the legally required 1-page disclosure document that tells any lawsuits against the seller, a cancellation or refund policy, and other information.

Romance Scams

Identity theft is the crime of using someone else’s personal information such as their name, Social Security number, or credit card details to commit fraud or other illegal activities-typically for financial gain.

The rise of identity theft, especially in the U.S., grows each year. Reportedly, 1 in every 5 Americans have been effected by identity theft. According to the Federal Trade Commission (FTC), over 1.1 million identity theft complaints occurred in 2024 and financial losses associated with fraud and identity theft exceeded $12.6 billion. Data compromises in 2024 hit a total of 1.35 trillion victim notices issued.

What are the biggest threats?

The 2 most emerging threats right now include Synthetic identity theft and the growth of Artificial Intelligence (AI) as it’s being used more in our everyday lives. Synthetic identity theft involves a mix of real and fabricated information and it makes up 85% of all identity fraud cases. The threat of AI gets higher with the use of deepfakes which involves creating hyper-realistic video and voice recordings as well as creating false images of documentation.

How can you protect your identity? 

1. Don’t give out your personal information unless you are positive you know who you are dealing with. Don’t give information out via e-mail or phone unless you have initiated contact with someone.
2. Always store items with your personal information is a secure place and dispose of documents properly-items such as a high quality shredder work great.
3. Protect your SSN and only give it if it’s a necessity. Don’t put your SSN on checks and don’t use it on the phone for general identification purposes.
4. Order a copy of your credit report free, once a year through http://www.annualcreditreport.com or call 877.322.8228. Verifying information on your credit report is a good way to combat identity theft.

Phishing: Don’t take the bait!

Phishing is an online scam that targets individuals by sending an e-mail that appears to be from a trusted source such as-your financial institution, the IRS, an internet service provider, a utility company and more. Phishing attempts don’t just include e-mails, they can come in the form of a text message as well. By clicking on the link, scammers use this to try to steal passwords, account numbers, Social Security numbers, and other personal identifying information.

Scammers will trick you into clicking a link or opening an attachment by usually putting a sense of urgency in the message. For example: “Dear customer, Hello this is ABC Bank, we’ve noticed you have attempted a transaction of $135.25. Urgent action is needed now to deny or confirm this transaction. Please click the link below. Thank you, ABC Bank.” Seems legit right? If you ever receive an email like this, DON’T CLICK ON THE LINK! Instead, look where the message came from first. Scammers might use a variation of the name of the business to create validity like in the example – From: Alerts@ABC.gmail.com or ABCBank123@ymail.com. These messages from a financial institution especially, would never be from a Gmail, Hotmail, or Yahoo! Mail account. The other red flags would be that the email has a generic greeting, it states that you need to take urgent action about a transaction you didn’t do, and it invites you to click on a link. While real companies might communicate with you via email, legitimate companies won’t email or text with a link to update payment information.

How to Protect Yourself

Your email spam filters might keep a majority of these emails out of your inbox however, with advancements in technology scammers are always figuring ways out to outsmart the spam filters. Having extra layers of protection can help. Here are some ways to protect yourself from phishing attacks:

• Set your computer and mobile device to update automatically for important security patches and updates
• Protect your accounts by using multi-factor authentication. Some accounts offer extra security by requiring two or more credentials to log in to your account. These additional credentials will fall into three categories-
  • something you know like a password, PIN, or the answer to a security question
  • something you have like a one-time verification passcode you get by text, email, or from an authenticator app or security key
  • Biometrics like a scan of your fingerprint, your retina. or your face

What to do if you responded to a Phishing Email

If you feel that you have fell victim to a phishing attack, go to https://IdentityTheft.gov. There you will see specific steps to take based on the information you lost.

If you may have clicked on a link or opened an attachment that could potentially be from a scammer, update your security software and run a scan to remove anything that it identifies as a problem.

How to Report Phishing

If you got a phishing email or text message, report it. The information you give helps fight scammers.

• If you got a phishing email, forward it to the Anti-Phishing Working Group at reportphishing@apwg.org.
• If you got a phishing text message, forward it to SPAM (7726).
• Report the phishing attempt to the FTC at ReportFraud.ftc.gov.

Source: https://consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams