Top 5 Biggest Scams

While scams are constantly evolving, here are some of the most pervasive and financially damaging schemes targeting individuals and businesses.

Impostor Scams

Scammers impersonate trusted entities like government agencies (IRS, Social Security Administration), law enforcement, businesses (your bank, tech support, online retailers), or even friends and family in distress. They create a false sense of urgency or fear to pressure victims into providing sensitive information or money.

Examples

Government impersonation: A scammer calls claiming you owe back taxes and will be arrested unless you pay immediately with gift cards or wire transfers.

“Grandparent” scams: A scammer pretends to be a grandchild in trouble and needs money for bail, medical expenses, or other emergencies.

Tech support scams: A pop-up or call claims your computer is infected with a virus and urges you to call a fake tech support number, allowing them to access your computer and steal information or demand payment.

Investment Scams

Scammers promise high returns with little or no risk, often using social media or online dating apps to find victims. They might claim insider knowledge or exclusive opportunities, particularly involving cryptocurrency.

Examples

Cryptocurrency scams (“pig butchering”): Scammers build relationships online and convince victims to invest in fake cryptocurrency platforms, eventually stealing their funds.

Ponzi or pyramid schemes: Funds from new investors are used to pay off earlier investors, with the scheme collapsing when new investors dwindle.

Fake investment opportunities: Scammers create elaborate fake websites or endorsements to convince people to invest in non-existent schemes.

Online Shopping Scams

Scammers set up fake online stores or profiles on legitimate marketplaces, often advertising popular brands or in-demand products at unbelievably low prices. They may send counterfeit products, nothing at all, or steal payment and personal information.

Examples

Fake retail websites: A scammer creates a website with a slightly altered URL and similar design to a real company, offering deep discounts.

Non-delivery scams: You purchase an item online, and it’s never delivered.

Counterfeit product scams: You receive a knockoff product instead of the genuine item you ordered.

Romance Scams

Scammers create fake online identities and profiles on dating apps or social media, gaining their victims’ affection and trust. After building a relationship, often over a long period, they invent a fake crisis and request money, gifts, or financial information.

Examples

Emergency requests: The scammer claims a medical emergency, travel expenses, or other unforeseen circumstances require immediate financial assistance.

Investment “opportunities”: The scammer convinces victims to invest in a fake business or cryptocurrency scheme.

Phishing Scams

Scammers use fake emails, texts, or websites mimicking legitimate sources (banks, retailers, government agencies) to trick individuals into revealing personal and financial information (Social Security numbers, passwords, bank account details, credit card numbers).

Examples

Fake login pages: An email or text leads to a malicious website designed to steal login credentials for online accounts.

Unexpected refund or prize notifications: An email or text claims you’ve won a prize or are due a refund and requires you to click a link to claim it.

Threatening messages: Scammers impersonate government agencies or law enforcement, threatening legal action or fines if you don’t provide information or payment.

How to Protect Yourself

Be skeptical and verify: Always be cautious about unsolicited calls, texts, or emails, especially if they demand immediate action or ask for personal information. Independently verify the legitimacy of organizations by contacting them through official channels (official website, known phone numbers) rather than relying on provided contact information.

Don’t click on suspicious links: Avoid clicking on links or attachments in unexpected messages. It’s safer to type website addresses directly into your browser or navigate through official applications.

Safeguard personal information: Be cautious about providing your Social Security number, bank account details, credit card information, or passwords online, especially if you didn’t initiate the interaction.

Be wary of unusual payment requests: Be suspicious if someone insists on payment methods like cryptocurrency, wire transfers, money orders, gift cards, or payment apps like Cash App or Zelle. These methods are often difficult to trace and may not be reversible.

Do your research: Before investing in anything or engaging with an online entity, research the company, website, or individual online to check for reviews, complaints, or signs of fraud.

Set strong passwords and enable multi-factor authentication: Use unique, strong passwords for each online account and enable two-factor authentication whenever possible to enhance security.

Update software and use security software: Keep your operating systems, browsers, and antivirus software up to date to protect against malware and phishing attacks.

Monitor financial accounts and credit reports: Regularly check your bank accounts and credit reports for suspicious activity.

Don’t be pressured: Legitimate businesses will give you time to make decisions. Scammers often use high-pressure tactics to force immediate action.

Talk to someone you trust: If you’re unsure about a situation or think you might be getting scammed, talk to a friend, family member, or trusted advisor before taking any action.

Report scams: If you encounter a scam, report it to the Federal Trade Commission (FTC) or other relevant authorities to help protect others.

Whom to Contact If You’ve Been Scammed

If you believe you have been the victim of a scam, here’s whom to contact, depending on the type of scam:

Local law enforcement

If you lost money or property or had your identity compromised, contact your local police or sheriff’s office to file a report. Even if you don’t expect to recover losses, filing a police report is crucial for documenting the incident and helps law enforcement understand criminal trends and potentially catch the perpetrators.

Federal Trade Commission (FTC)

For most types of scams and frauds, including imposter scams, investment scams, online shopping scams, romance scams, and phishing scams, report it to the FTC at ReportFraud.ftc.gov. You can also file a report by calling 1-877-FTC-HELP (1-877-382-4357).

The FTC uses these reports to detect patterns of wrongdoing, build cases against scammers, educate the public, and share data with law enforcement agencies nationwide.

Financial Institutions

If you paid a scammer with a credit or debit card, contact your card issuer immediately. Report the fraudulent charges and request that your card be blocked or replaced. You can also file a dispute (chargeback) to potentially reverse the transaction.

If you paid with an electronic bank transfer, contact your bank immediately. Ask if they can stop the transaction or recover your money from the recipient’s account.

If you paid with a wire transfer (e.g., Western Union, MoneyGram), contact the wire transfer company immediately and report the fraudulent transfer. Ask them to reverse it and refund your money.

If you sent cash via the US mail, contact the US Postal Inspection Service at (877) 876-2455 and ask them to intercept the package. Contact other delivery services if they were used.

If you gave a scammer your bank account details or other financial information, immediately notify your bank or financial institution to secure your accounts.

Internet Crime Complaint Center

For scams involving the internet or cyber-enabled crime, file a report with the Internet Crime Complaint Center (IC3), a division of the FBI, at ic3.gov. Rapid reporting to IC3 can help support the recovery of lost funds in some cases.

Other Specialized Agencies (if applicable)

Identity theft: If someone is using your personal information to open new accounts, make purchases, or file taxes, report it at IdentityTheft.gov.

Tax scams: Report tax-related scams or fraud to the IRS.

Elder financial exploitation: If the victim is an older person or a person with a disability, contact your local adult protective services agency or use the Eldercare Locator (800-677-1116).

Mail-related scams: Report to the US Postal Inspection Service.

Investment fraud: Report to the Securities and Exchange Commission (SEC).

Telecommunications scams: Report to the Federal Communications Commission (FCC).

Social Media and Online Platforms

If the scam occurred on a social media platform or online marketplace, report the fraudulent activity to the platform itself.

Additional Steps

Gather all information and documentation related to the scam, including emails, texts, phone numbers, transaction details, and any screenshots.

Secure your computer and accounts: Run antivirus scans, update passwords, and enable multi-factor authentication.

Place a fraud alert on your credit report: Contact one of the three major credit bureaus (Equifax, Experian, TransUnion) to place an alert, making it harder for identity thieves to open accounts in your name.

Consider seeking support: Dealing with the emotional and financial impact of a scam can be challenging. Talk to someone you trust, or seek professional help if needed.

Taking prompt action and reporting the scam to the appropriate authorities are important steps towards recovering from the incident and helping to protect others from falling victim to similar schemes.