Online scams are the number one cause of financial fraud worldwide. In 2023, the FTC received 2.6 million fraud reports with total losses exceeding $10 billion. Here's your comprehensive guide to recognizing and avoiding every major scam type.

Phishing — Fake Emails

Phishing emails impersonate trusted organizations — banks, Amazon, the IRS, PayPal, or your employer — to trick you into clicking malicious links or entering credentials on fake websites.

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Red flags: Urgency ("Act now or your account will be closed!"), generic greetings, mismatched sender email address, hover shows different URL than displayed link, requests for credentials or payment.

✓Never click email links — navigate directly to websites by typing the URL
✓Hover over links to see the actual URL before clicking
✓Check the sender's full email address (not just the display name)
✓When in doubt, log in to your account directly and check for notifications there

Smishing — Fake Text Messages

Smishing uses SMS or messaging apps to deliver scam messages. Common types include fake package delivery notifications, bank fraud alerts, prize notifications, and government benefit messages.

✓Never click links in unexpected text messages
✓Contact companies directly using numbers from their official website
✓Legitimate banks never ask for account numbers or passwords via text

Tech Support Fraud

You see a scary popup claiming your computer is infected. A "technician" calls offering help, gaining remote access to your computer and then demanding payment via gift cards or wire transfer.

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Critical fact: Microsoft, Apple, Google, and your ISP will never proactively call you about a computer problem. Browser popups cannot detect viruses. These are scams 100% of the time.

Romance Scams

Criminals create fake online personas and build emotional relationships over weeks or months. Once trust is established, they invent a crisis requiring money: medical emergency, travel costs, stuck abroad, investment opportunity. Average romance scam loss: $10,000.

Government Impersonation

Scammers pose as the IRS, Social Security Administration, Medicare, or law enforcement. They claim you owe money, your benefits are being cut, or you face arrest — demanding immediate payment via gift cards, wire transfer, or cryptocurrency.

✓The IRS always contacts via postal mail first — never a cold call
✓Government agencies never demand gift cards, wire transfers, or crypto
✓Hang up and call the agency directly using the number from their official .gov website

Lottery & Prize Scams

You receive notice that you've won a prize, lottery, or competition you never entered. To claim, you must pay "taxes," "processing fees," or "customs charges" upfront. There is no prize.

Online Shopping Scams

Fake online stores, often promoted through social media ads, take your payment and personal information then never deliver. Signs: prices too good to be true, no physical address, new domain, no reviews on independent sites.

The Golden Rules

🛑Any request for gift cards as payment is always a scam — no exceptions
🛑Artificial urgency ("Act in the next 30 minutes!") is a manipulation tactic
🛑If it sounds too good to be true, it is
✓When uncertain, talk to a trusted friend or family member before acting
✓Report scams to the FTC at reportfraud.ftc.gov
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