The Federal Trade Commission outlines common signs of scams and specific steps individuals can take to protect their money and information. The agency provides procedures for attempting to recover lost funds and securing personal accounts if a scam occurs.
Identifying a scam
Scammers frequently pretend to contact individuals on behalf of the government, such as the FTC, the Social Security Administration, or the IRS. They might also make up an official-sounding name or impersonate a familiar business or charity. The FTC notes that scammers use technology to alter the name and phone number on caller ID screens, making them appear legitimate.
Fraudsters often claim there is a problem, such as owing money or having a family emergency, or they lie about a prize that requires a fee to claim. They pressure targets to act immediately, sometimes threatening arrest, lawsuits, or deportation. Scammers also insist on specific payment methods, including cryptocurrency, wire transfers, payment apps, or gift cards.
Avoiding scams
To avoid scams, the FTC advises individuals to block unwanted calls and filter text messages. Consumers should never provide personal or financial information, such as bank account or Social Security numbers, during an unexpected request. Honest organizations will not call, text, or email to ask for this information.
If an individual receives a message from a known company, the agency recommends contacting the business through a trustworthy website rather than clicking links or calling a provided number. The FTC also warns consumers to resist pressure to act immediately, as honest businesses allow time to make decisions. Furthermore, the agency emphasizes that individuals should stop and discuss the situation with a trusted friend or family member before taking action.
Recovering lost funds
If an individual has already paid a scammer, the FTC recommends immediately contacting the company used to send the money to ask for a reversal and refund. For bank transfers, debit cards, or credit cards, victims should contact their bank or card issuer. Federal law provides protections for unauthorized credit and debit card use.
When scams involve wire transfer companies like Western Union or MoneyGram, or payment apps such as Venmo and PayPal, users should report the fraud directly to those services. If payment was made with a gift card, the agency advises contacting the card issuer immediately and keeping the physical card and receipt. For cash sent through the U.S. mail, individuals can contact the U.S. Postal Inspection Service to potentially intercept the package for a fee.
The FTC notes that cryptocurrency payments lack the legal protections of credit and debit cards, making it difficult to retrieve funds. However, victims should still contact the cryptocurrency exchange or ATM operator to request a reversal.
Protecting personal information and devices
Scammers use phishing emails and text messages to trick people into sharing information, which they can use to steal identities or open credit accounts. If an individual provides their Social Security number to a scammer, the FTC directs them to visit IdentityTheft.gov to report it and receive a recovery plan. If a scammer obtains an account username and password, the user should create a new, strong password and enable two-factor authentication.
When scammers gain access to a phone or computer, they may install harmful software. The FTC instructs individuals to update their security software, run a scan, and delete anything identified as a problem. Users should also change their passwords and turn on two-factor authentication to secure their accounts.
Reporting scams to the government
The FTC asks individuals to report scammers through its dedicated fraud reporting website. The agency states that it uses these reports to build cases against scammers, spot trends, and educate the public. The FTC notes that it will never threaten individuals, demand money transfers for protection, or instruct people to withdraw cash or buy gold.