Though there are different types of scams, the objective is the same: to convince victims to send money or enable access to their financial accounts. If you take part in a scam, you could lose more than just the funds in your account. It’s illegal to knowingly take part in a scam and doing so can result in large fines and criminal charges.
Scammers often use sophisticated tactics to commit fraud that make it hard to cancel or reverse the transaction. Common ways they convince you to send money include:
Wire transfer: Scammers may request wire transfers as part of a real estate scam or business payment scam. Because wire transfers are an immediate form of payment, they are typically irreversible.
Digital payment: Scammers may convince you to send the funds through online banking using Zelle® or ExpressSend®, or another payment service like Venmo or CashApp. If scammers obtain your online credentials, they can also transfer your money themselves.
Check or account deposit: Scammers may send you a fake check or make a deposit into your account. Once the money is deposited, you are asked to send all or a part of it back. After you send the money, you find out that the check bounced, or the deposit is fraudulent.
Note: You are responsible for the full amount of the check you deposited and associated check fees if it bounces. It may typically take up to 10 business days for a check to be discovered as fraudulent and returned to your bank. (This varies by state and can take up to a few years.)
Debit or credit card: After obtaining your debit or credit card number through a scam or data breach, scammers may use it to make unauthorized purchases. You can help stop that by setting up alerts within your online banking profile to help you track your transactions and spot unusual account activity.
Gift and prepaid card: Scammers may ask you to pay them using a gift or prepaid card in exchange for a service they provide, such as tech support. This is a popular payment method because gift cards are like cash. If you are ever asked to pay or donate in the form of a gift card or prepaid card, it may be a scam.
Cryptocurrency: Cryptocurrency is digital money that is not backed by the U.S. government, and once sent, is irreversible. As part of a job or investment scam, you may be asked to make a payment using cryptocurrency, such as Bitcoin or Ether. Scammers may also make purchases using your bank account information on cryptocurrency platforms, such as Coinbase.
Here’s what you can do.
- Be wary of get-rich-quick schemes. If an offer seems too good to be true, it probably is.
- Avoid sending money or giving your account information to anyone you don’t know or a company you can’t verify as a legitimate. If you send money as part of a scam, you may not be able to get it back.
- Beware of scammers impersonating a tech support company, fraud department, or government agency through a phone call or pop-up message on your computer. Do not provide your account information or access code, and do not give them control to your computer.
- Be wary of an unexpected request for payment for a product, service, or fee through any form of communication (email, phone call, social media, etc.) Do your research and don’t be afraid to end communication with the person making the request.
- Don’t send money back to someone who has provided a check or overpayment for goods or services.
- Be suspicious if someone requests your account information or assistance with a financial transaction, such as cashing a check on their behalf or transferring money for them.
- Card Cracking - You see a post about making easy money. Scammers ask for your debit card and PIN or mobile banking username and password to deposit a fake check into your account. They may ask you to report your card lost or stolen or that your credentials have been compromised in order to seek reimbursement from the bank. ln exchange, scammers may promise you a portion of the funds you deposit.
- Friend or Family Member Imposter - You receive a call or email from someone that appears to be legitimate because the scammer has some specific information about you, such as your name and details about your friends and family, Using this method, scammers can trick you into believing they are a friend or family member, claiming to need money for an emergency, such as posting ball, paying a hospital bill, or being detained at an airport. Scammers may pressure you to send money immediately through an online wire or other payment service, such as Zelle.
- Lottery or sweepstakes - You receive a phone call, email, or letter stating you have won a lottery or sweepstakes. Scammers require you to pay a fee to receive the prize to avoid taxes or additional fees, or may even threaten to report you to the IRS or police if you don't make the requested payment.
- Online Dating – Scammers use online dating sites, social networks. and chat rooms to meet potential victims. They create fake profiles to build online relationships and eventually request you to send money due to hardship.
- Ransomware – You unknowingly download a type of malicious software to your computer. This software is designed to block access to your operating system and all the information stored on your PC until you pay a sum of money to an online criminal.
