Common Scams and Fraud Prevention Tips

How Do Investment Scams Work?

In investment scams, criminals may pretend to be Financial Advisors, investment managers, crypto experts, representatives of well-known financial institutions (including Morgan Stanley, E*TRADE and Shareworks), online trading platforms or even a friend, family member or public figure recommending a “special opportunity.”

Key Warning Signs of an Investment Scam

You may be contacted by phone, text, email, social media or through an online ad promoting an investment that sounds unusually attractive. The scammer may promise guaranteed returns, “risk-free” profits, exclusive access or a limited-time opportunity. Some scams involve crypto, foreign exchange trading, private funds, real estate, precious metals or fake trading platforms that appear to show your money growing.

At first, the investment may seem legitimate. You may receive professional-looking documents, account statements, websites or testimonials. In some cases, scammers allow you to withdraw a small amount of money early to build trust. Then they pressure you to invest more. When you try to withdraw larger amounts, you may be told you must first pay taxes, fees or penalties separately before your money can be released.

How to Protect Yourself from Investment Scams

Be wary of any investment that promises high returns with little or no risk. Take your time and verify the person, firm and opportunity through independent sources before sending money. Do not rely on links, documents or contact information provided by the person promoting the investment.

Never share account credentials, one-time passcodes or personal financial information in response to an unexpected investment offer. If you feel rushed, pressured or told to keep the opportunity secret, stop and seek a second opinion from a trusted financial professional.

How Can You Identify a Romance Scam?

In romance scams, fraudsters may pretend to be romantic partners, military service members, doctors, business owners, international workers, widows or widowers, investors, public figures or people seeking a serious relationship on dating apps, social media, messaging platforms or online communities.

Key Warning Signs of a Romance Scam

Romance scams often begin with friendly or flattering messages from someone who appears interested in building a relationship. The scammer may quickly create trust and emotional dependence, sometimes claiming to live far away, be traveling, deployed, working overseas or otherwise difficult to meet. They may move the conversation to private messaging apps to avoid detection.

Over time, the scammer may share personal stories, photos or promises about a future together. Eventually, an urgent financial need appears, such as medical bills, travel costs, customs fees, business problems, legal issues or a family emergency. Some romance scams also become investment scams, with the person encouraging you to invest in crypto or another “exclusive” opportunity.

Protect Yourself from Romance Scams

Help protect yourself from romance scams by being cautious if someone quickly expresses strong feelings, asks for secrecy, pressures you to act quickly or requests money or financial help. Do not send funds, gift cards, crypto, payment app transfers, account access or sensitive personal information to someone whose identity and intentions you have not independently verified.

Do not assume someone is legitimate just because you have met in person or connected by video call. Scammers may build trust over time or manipulate audio, video or images. Seek a second opinion from a trusted friend, family member or professional before sending money or making an investment.

What Is a Grandparent Scam and How Does It Work?

In a grandparent scam, a criminal may pretend to be a grandchild, child, relative, friend, attorney, doctor, law enforcement officer, hospital employee or someone speaking on behalf of a loved one in distress.

Key Warning Signs of a Grandparent Scam

You may receive an urgent phone call, text or email claiming that a family member is in trouble and needs money immediately. The scammer may say your loved one has been arrested, injured, hospitalized, stranded while traveling or facing legal trouble. The message may be emotional and frightening, designed to make you act before you verify the story.

In some cases, the scammer impersonates the relative directly, using deepfake audio and personal details found online. In other cases, the caller pretends to be an attorney, police officer or doctor. They may instruct you not to tell anyone because the situation is embarrassing, confidential or legally sensitive.

The scammer may demand payment by wire transfer, gift cards, crypto, payment app, cash delivery or courier pickup. They may keep you on the phone while you gather funds and pressure you to act quickly.

Protect Yourself from a Grandparent Scam

Avoid becoming a victim of a grandparent scam by hanging up on suspicious calls and contacting the family member directly using a known phone number. If you cannot reach them, call another trusted relative or friend to verify the story.

Do not provide names, addresses, financial information or payment details to an unexpected caller. Be suspicious of secrecy, pressure or unusual payment methods. Consider setting up a family safe word, a code that can be used in emergencies.

What Is a Payment App Scam on Zelle®, Venmo and PayPal?

On peer-to-peer payment apps like Zelle^®, Venmo and PayPal, scammers may pretend to be friends, family members, marketplace buyers or sellers, landlords, service providers, customer support representatives, banks, payment app companies, delivery drivers, ticket sellers or people who claim they sent you money by mistake.

Key Warning Signs of Payment App Scams

In payment app scams, requests may come from fraudulent vendors or appear to come from someone you know, but the account may be compromised or spoofed. For example, in marketplace scams, a seller may ask you to pay before you receive the item, then disappear. In overpayment scams, a buyer may claim they sent too much and ask you to return the difference. In “mistaken payment” scams, someone may pressure you to send money back, even though the original payment may later be reversed or fraudulent. Scammers may also impersonate a bank or payment app and instruct you to move money to “protect” your account.

Protect Yourself from Zelle®, Venmo and PayPal Scams

Treat payment app transfers like cash. Send money only to people you know and trust, and verify requests through a separate, trusted communication channel. Carefully check the recipient’s username, phone number or email before paying. Be suspicious of urgent requests, refunds, overpayments or instructions to move money to a “safe” account.

What Is a Tech Support Scam?

A tech support scam occurs when a criminal pretends to be a representative from a technology company, internet service provider, bank or internal IT support team.

Key Warning Signs of a Tech Support Scam

In a tech support scam, you may receive a phone call, pop-up alert, email or text claiming there is a virus, suspicious login, expired software, unauthorized charge or security breach. It may include alarming language, flashing warnings, fake error codes or instructions to call a “support” number immediately.

Once connected, the scammer may ask you to install remote access software, share your screen, provide one-time passcodes, disclose passwords or log in to financial accounts. They may pretend to run a diagnostic scan and show you normal system files or activity as “proof” of a problem. Some scammers demand payment for unnecessary repairs, subscriptions or security services. Others use the remote connection to steal information, install malware or access online banking and investment accounts. Tech support scams may also begin through search engine ads or fake customer service websites.

Protect Yourself from Tech Support Scams

To help protect yourself from tech support scams, be cautious of unsolicited tech support messages, especially if they create urgency or ask you to call a number. Do not give remote access to your device unless you initiated contact through a verified support channel. Never share passwords, one-time passcodes or financial information with someone claiming to fix a technical issue. If you are concerned, disconnect from the interaction, close the browser window and contact the company directly through its official support number.

What Happens in a Lottery or Prize Scam?

In a lottery or prize scam, someone may pretend to represent lottery organizations, sweepstakes companies, prize promotion agencies, well-known retailers or attorneys claiming to help release your winnings.

Key Warning Signs of a Lottery or Prize Scam

You may receive a phone call, text, email, letter, social media message or pop-up notification claiming you have won a prize, lottery, sweepstakes, grant, vacation, luxury item or large cash award. The message may look official and include reference numbers, seals, certificates, logos or the names of recognizable companies or government agencies. The scammer may say you must pay taxes, processing fees, shipping charges, insurance costs, customs duties or legal fees before the prize can be delivered.

In some cases, scammers send a fake check and ask you to deposit it, then send back a portion of the money for fees or taxes. The check may appear to clear at first, but later be reversed, leaving you responsible for the funds. Other scams ask for your bank account information, Social Security Number, copies of identification or online account credentials to “verify” your identity or process the prize.

Protect Yourself from Lottery or Prize Scams

Be cautious of any unexpected prize notification, especially if you do not remember entering a contest. Legitimate lotteries and sweepstakes do not require you to pay upfront to receive winnings. Verify the organization independently through official sources. Never provide personal or financial information or payment in response to an unexpected prize or lottery claim.

What Is a Government Impersonation Scam?

A government impersonation scam occurs when a criminal pretends to be a government agency or official and pressures you to share personal information or send money.

Key Warning Signs of a Government Impersonation Scam

Government impersonation scammers commonly claim you owe taxes, missed jury duty, have an unpaid parking ticket or toll, are at risk of arrest, need to update your voter registration or need to “verify” your identity to protect your benefits. They may use real-looking seals, spoofed phone numbers, fake websites and threatening language. Their goal is to make the situation feel official—and urgent—so you act before you have time to think.

Protect Yourself from Government Impersonation Scams

Pause before responding. Real government agencies will let you hang up and verify the matter independently. Do not use the phone number, link or website the person provides. Instead, look up the agency’s official contact information yourself.

Never share your Social Security Number, account passwords, one-time passcodes, copies of IDs or financial information in response to an unexpected message or call. Be especially cautious if you are pressured to pay immediately by gift card, wire transfer, crypto, payment app or an “urgent” link.

How Can You Spot a Charity Scam?

A charity scam occurs when a fraudster pretends to represent well-known charities, disaster relief organizations, religious groups, community fundraisers, veteran organizations, medical fundraisers, animal rescues, sick pet fundraisers or families affected by a tragedy.

Key Warning Signs of Charity Scams

Charity scams often appear after natural disasters, wars, famines or other humanitarian crises, mass tragedies, acts of violence or personal medical emergencies. You may receive a call, text or email, see a social media message or online fundraising page or notice a flyer asking you to donate. The message may include emotional stories, urgent language, photos or a QR code designed to make giving feel immediate and easy.

Some scammers use names that sound very similar to real charities or create fake websites or donation pages that look legitimate. Others may copy real fundraising pages, including photos and personal details or invent a moving backstory to make the appeal feel authentic.

Protect Yourself from Charity Scams

Pause before donating, especially if the request is unexpected, urgent or based mainly on an emotional appeal. Look up the charity, shelter or fundraiser yourself using official websites or trusted charity evaluation resources. Do not use a link, QR code or phone number unless you have verified it independently.

Be cautious if someone pressures you to donate immediately, refuses to provide details or asks for unusual payment methods such as gift cards, wire transfers, crypto, payment apps or unfamiliar donation links.

What Are the Warning Signs of a Job Scam?

In job scams, fraudsters may pretend to be recruiters, hiring managers, staffing agencies, well-known companies, remote-work platforms or individuals offering consulting, caregiving, personal assistant or work-from-home opportunities.

Key Warning Signs of a Job Scam

You may receive an unexpected message about a job that sounds flexible, well-paid and easy to start. The scammer may say they found your resume online or were referred to you. The hiring process may move unusually quickly, with little or no interview, and the communication may take place only by text, email, messaging app or video call.

Some employment scams ask you to provide personal information, such as your Social Security Number, driver’s license or bank account details. Others send a fake check for equipment or supplies that may appear to clear at first but can later be reversed, leaving you responsible for the funds. Scammers may also ask you to pay upfront for training, uniforms, background checks or other job-related expenses.

Protect Yourself from Job Scams

Be cautious if a job offer arrives unexpectedly, pays unusually well or requires you to act quickly. Verify the company and recruiter independently by going directly to the company’s official website, not through links or contact details provided in the message.

Never pay upfront for a job or send money on behalf of an employer. Do not provide sensitive information until you have confirmed the role, company and hiring process are legitimate. If something feels rushed, vague or too good to be true, pause and verify.

How Do Online Shopping Scams Work?

Online shopping scams work when cybercriminals pretend to be online retailers, luxury resale sellers, ticket vendors, marketplace sellers, delivery companies, customer service representatives or brands advertising popular products at unusually low prices.

Key Warning Signs of Online Shopping Scams

You may see an ad, website, email, text or social media post offering a product, ticket or service at a discount. The site may look professional and include brand logos, customer reviews, countdown clocks or “limited inventory” messages. After you pay, the item may never be delivered, arrive as a counterfeit or low-quality product or be different from what was advertised.

In other cases, scammers pose as delivery companies or customer service teams and claim there is a problem with your order. They may ask you to click a link, pay an extra fee, verify your account or provide information. Some fake shopping sites are designed primarily to collect payment details, passwords or other sensitive information.

Protect Yourself from Online Shopping Scams

Be cautious of prices that seem unusually low, websites you have not used before or sellers who pressure you to pay quickly. Before purchasing, check the website address carefully, look for independent reviews and confirm the seller’s return and contact information.

Avoid paying by wire transfer, gift card, crypto or payment apps that offer limited buyer protection. Do not click unexpected delivery or order links. Instead, go directly to the retailer’s or carrier’s official website and enter your tracking or order information there. If you are unsure whether it's legitimate, verify before entering your payment details.