Avoiding Scams and Identity Theft
Pause, Verify, and Then Decide
Scammers use phone calls, texts, emails, social media, websites, and even personal relationships to trick people into sending money or revealing private information. Learning to recognize these tactics can protect your money, credit, reputation, and peace of mind.
What Are Scams and Identity Theft?
A Scam
A dishonest plan designed to steal your money, personal information, or access to an account.
Identity Theft
When someone uses your personal or financial information without your permission to make purchases, open accounts, obtain medical care, file a fraudulent tax return, or pretend to be you.
Your personal information at risk includes:
Scammers may impersonate:
Important: Technology can make scams appear convincing. Caller ID, email addresses, websites, voices, photographs, and videos can all be copied or manipulated.
Why This Skill Matters
A successful scam can cause more than an immediate financial loss. It can also result in:
Anyone can be targeted. Falling for a scam does not mean someone is foolish. Scammers deliberately create fear, excitement, trust, urgency, or confusion so people act before thinking.
The Goal
Pause, verify, and then decide.
Common Warning Signs
Be cautious when someone:
Contacts you unexpectedly and demands immediate action.
Threatens arrest, deportation, account closure, or loss of benefits.
Says you won a prize but must pay a fee to receive it.
Promises easy money, guaranteed investment returns, or a job requiring upfront payment.
Requests payment through gift cards, cryptocurrency, wire transfers, cash, or a payment app.
Asks for your password, PIN, or one-time security code.
Sends a link and tells you to sign in immediately.
Claims you must move money to a "safe" account.
Tells you not to speak with your family, bank, or police.
Sends you a check and asks you to return part of the money.
Uses a slightly misspelled email address or website.
Refuses to provide information you can independently verify.
One warning sign does not always prove something is a scam, but it is a reason to stop and investigate.
Step-by-Step Protection Guide
Protect your personal information
Do not casually share your Social Security number, birth date, account numbers, passwords, or identification documents.
Before providing personal information, ask:
- Who is requesting it?
- Why is it needed?
- How will it be protected?
- Can I provide a less-sensitive form of identification?
Shred documents containing sensitive information before throwing them away. Keep important records in a secure location.
Use strong, unique passwords
Create a different password for every important account, especially your email, bank and credit card accounts, social media, online shopping accounts, and payment applications.
Use long passwords or passphrases that are difficult to guess. A reputable password manager can create and store unique passwords for you. Never reuse your email password on another account — anyone who gains access to your email may be able to reset passwords for many of your other accounts.
Turn on multifactor authentication
Multifactor authentication (sometimes called two-step verification) requires an additional form of identification when you sign in.
The extra step may be:
- A code from an authentication application
- A security key
- A fingerprint or facial scan
- A code sent to your phone
An authentication application or security key is generally safer than text messages when those options are available. Never give an unexpected security code to another person.
Be careful with messages and links
Do not automatically trust a message because it contains a familiar name or logo. If a message claims to be from your bank, employer, school, or government agency:
- Do not click the message's link.
- Do not call the number provided in the message.
- Open the organization's official application or website yourself.
- Call a trusted number from your bank card, statement, or the organization's official website.
Avoid opening unexpected attachments. They may contain harmful software.
Resist pressure and urgency
Scammers want you to make an emotional decision before you can check their story. If someone pressures or frightens you:
- End the call or conversation.
- Take a few minutes to think.
- Talk with someone you trust.
- Verify the claim independently.
- Search for the organization's official contact information.
A legitimate organization should allow you time to confirm a request.
Verify requests involving money
Before sending money:
- Confirm the identity of the person or business.
- Review the payment method.
- Search the company's name with words such as "scam," "fraud," or "complaint."
- Read the cancellation and refund policies.
- Be suspicious if you must pay to receive a prize, job, loan, or grant.
If a relative or friend contacts you with an emergency request, call that person using a number you already know. If you cannot reach the person, contact another family member.
Secure your devices
Keep your phone, computer, web browser, applications, and security software updated. Updates frequently repair security weaknesses.
Also:
- Use a screen lock.
- Back up important information.
- Download applications only from trusted sources.
- Avoid conducting financial business over unsecured public Wi-Fi.
- Do not allow an unexpected caller to control your computer remotely.
Monitor your accounts and credit
Review bank and credit card activity regularly. Report unfamiliar transactions immediately.
Obtain your credit reports from AnnualCreditReport.com, the federally authorized source for free credit reports. Look for accounts, addresses, balances, or inquiries you do not recognize. You may also consider freezing your credit — it is free, does not affect your credit score, and makes it harder for someone to open a new credit account in your name. Contact all three credit bureaus (Equifax, Experian, and TransUnion) to freeze your reports.
Act quickly if something goes wrong
If you sent money or revealed information:
- Contact the financial company immediately. Ask whether the payment can be stopped or reversed.
- Change compromised passwords — and anywhere else they were reused.
- Secure your email account. It may provide access to your other accounts.
- Contact the organization involved. Report unauthorized charges or account changes.
- Visit IdentityTheft.gov. The FTC can create a personalized recovery plan.
- Report the scam at ReportFraud.ftc.gov.
- Review your credit reports.
- Place a credit freeze or fraud alert when appropriate.
- Save evidence: messages, receipts, usernames, phone numbers, and transaction records.
Do not let embarrassment prevent you from asking for help. Acting quickly may reduce the damage.
A Realistic Example
Marcus receives a text that appears to come from his bank:
"Unusual activity detected. Your account will be suspended. Verify your identity immediately."
The message includes a link. Marcus is worried because he used his debit card earlier that day.
Instead of clicking the link, Marcus pauses. He opens his bank's official application and sees no warning. He then calls the number printed on the back of his debit card. The bank confirms that it did not send the text.
Marcus blocks the sender, deletes the message, and reports it. Because he verified the request independently, he avoided entering his username, password, and security code on a fake website.
If Marcus had entered his password:
He should have changed it immediately, contacted his bank, reviewed his transactions, and followed the recovery guidance at IdentityTheft.gov.
Common Mistakes to Avoid
Using the same password for several accounts
Sharing one-time verification codes
Clicking links in unexpected messages
Trusting the name displayed on caller ID
Sending money before confirming someone's identity
Paying a stranger with gift cards or cryptocurrency
Depositing a check and immediately sending money back
Posting too much personal information publicly
Ignoring small, unfamiliar charges
Delaying action because of embarrassment
Assuming younger or technology-savvy people cannot be fooled
Believing money shown in your account means a deposited check has cleared permanently
Remember: A bank may initially make deposited funds available, but the check can still be discovered as fraudulent later. You may then be responsible for the money you spent or returned.
Simple Safety Checklist
Before responding to an unexpected request, ask:
If something does not feel right, stop. You can always investigate before responding.
Recommended Next Steps
Turn on multifactor authentication for your email and financial accounts.
Replace any passwords you have reused.
Set up transaction alerts through your bank and credit card companies.
Review your recent account activity.
Check your credit reports at AnnualCreditReport.com.
Review the privacy settings on your social media accounts.
Update your phone, computer, and applications.
Discuss common scams with family members.
Save official bank and credit card telephone numbers in your contacts.
Change affected passwords immediately.
Contact the appropriate financial institutions.
Consider freezing your credit.
Visit IdentityTheft.gov for a personalized recovery plan.
Continue monitoring your accounts and credit.
Trustworthy Resources
Federal Trade Commission — Scams
Information about current scams and how to recognize them.
IdentityTheft.gov
Official recovery plans, reporting tools, forms, and sample letters for identity-theft victims.
ReportFraud.ftc.gov
Report scams, fraud, and dishonest business practices to the FTC.
FTC — What to Do if You Were Scammed
Immediate steps based on the information or payment involved.
FTC — Credit Freezes and Fraud Alerts
Explains the differences between freezes and fraud alerts.
AnnualCreditReport.com
The federally authorized website for obtaining free credit reports.
CISA — Recognize and Report Phishing
Practical guidance for identifying suspicious messages.
CISA — Multifactor Authentication
Instructions for adding an extra layer of account protection.
Key Choice
When a message creates fear, excitement, or urgency, choose to pause and verify it independently. A few careful minutes can protect your identity, money, and future.