Scammers are constantly finding new ways to target individuals, but many of their tactics follow familiar patterns. By understanding how these scams work, you can better protect your personal and financial information. Below are some of the most common scams—and what you can do to avoid them.
Lottery or Sweepstakes Scam
What it is:
Congratulations—you’ve just “won” a foreign lottery. You receive a letter along with a large-dollar check and instructions to deposit it into your personal account. However, you’re told to immediately wire a portion of the funds to a foreign bank account to cover taxes or administrative fees.
How to protect yourself:
Legitimate lotteries deduct taxes before issuing winnings, they don’t ask winners to pay fees upfront. It is also illegal to play foreign lotteries by mail or phone in the U.S. If you didn’t enter a lottery, you didn’t win.
Government Grant Scam
What it is:
You receive a phone call from someone claiming to represent a government agency, congratulating you on being awarded a free grant for something like paying your taxes on time. The caller asks for your checking account number so the funds can be deposited and a “one-time processing fee” withdrawn.
How to protect yourself:
Government grants are not awarded randomly—you must apply and go through a formal process. Never share your banking information with unsolicited callers, especially if you did not initiate the request.
Online Romance/Dating/Friendship Scam
What it is:
Someone you meet through an online dating or social platform quickly builds a relationship with you and moves communication off the platform. Over time, they share a story about financial hardship and ask for help, often involving cashing a check or wiring money.
How to protect yourself:
Be cautious of anyone who quickly asks to take conversations off a trusted platform. Never send money or share financial information with someone you haven’t met in person, especially if the request involves urgency or emotional pressure.
“Stranger in Need” Scam
What it is:
Someone you don’t know well—or have just met—claims they cannot cash a check and asks you to deposit it into your account and give them the cash. They may offer a small payment, such as $20, for your help.
How to protect yourself:
If the check turns out to be fraudulent, you are responsible for the full amount—even if you’ve already given the cash away. Always be cautious of anyone asking you to handle money on their behalf.
Work-From-Home / Work-out-of-the-Home Scam
What it is:
You respond to a job offer promising easy work and high pay. The “employer” sends you a check that includes your first paycheck and funds for supplies. You’re then instructed to deposit the check and send a portion of it elsewhere for “training” or certification costs.
How to protect yourself:
Legitimate employers do not send money in advance and ask employees to return a portion of it. Avoid any job that requires you to process checks or transfer funds using your personal account.
Mystery Shopping Scam
What it is:
You’re offered an opportunity to earn money as a mystery shopper. After signing up, you receive a package with instructions, evaluation forms, and a check. You’re told to deposit the check, withdraw funds, and wire money as part of your assignment to evaluate a money transfer service.
How to protect yourself:
Real mystery shopping companies do not require you to wire money or send funds back. If the job involves moving money, it’s likely a scam.
Overpayment Scam
What it is:
You’re selling an item online, and the buyer sends a check for more than the agreed price. They claim it was a mistake and ask you to deposit the check and wire back the difference.
How to protect yourself:
Fraudulent checks can look authentic but will eventually bounce. Never accept overpayments or agree to send money back to a buyer.
Service or Account Verification Scam
What it is:
You receive a phone call from someone claiming to be from a legitimate company. They say there’s an issue with your account and ask you to verify personal information such as your account number or birth date.
How to protect yourself:
Be especially cautious of calls you did not initiate. If something feels off, hang up and contact the company directly using a verified phone number from their website or your account statement.
Final Takeaway
Scammers rely on urgency, trust, and confusion to succeed. Taking a moment to pause, verify, and question unexpected requests can make all the difference. When in doubt, don’t send money, don’t share personal information, and reach out directly to a trusted source.
