How to Spot and Avoid Scams
Scams are one of the fastest-growing types of fraud, and they’re costing Americans billions of dollars each year. According to the Federal Trade Commission, imposter scams were the most reported fraud in 2021, with losses exceeding $2.6 billion. These scams often begin with an unexpected phone call, email, text message, or social media contact from someone pretending to be a trusted person or organization. The goal is almost always the same: to trick you into sending money or sharing personal information.
Scammers use a variety of disguises. Some pretend to be a romantic partner online, creating a fake relationship to gain your trust before asking for money. Others pose as government officials from the IRS, Medicare, or FBI, warning you of serious consequences if you don’t act immediately. A common scheme involves someone claiming to be a family member or friend in distress who urgently needs financial help. Imposters also create fake charities to tug at your heartstrings, pretend to be from well-known companies or your bank, or call offering “technical support” for problems that don’t exist.
There are some clear warning signs you can watch out for. If you receive an unsolicited call or email claiming you owe money and will face arrest, account freezes, or penalties if you don’t pay right away, it’s almost certainly a scam. Another red flag is being told you’ve won a prize or qualify for a grant but must pay a fee upfront. Tech support scams are also common—fraudsters may claim to be from Microsoft or another company saying your computer has a virus, or that a subscription is about to renew unless you provide payment details. And if someone contacts you out of the blue saying they’re a relative in an emergency and need cash, take a pause—it could be an impersonator.
Protecting yourself comes down to staying cautious and verifying information independently. Don’t rely on caller ID, since scammers can spoof legitimate phone numbers. Instead, if you think a company or government agency is really trying to reach you, use the contact information from official websites, billing statements, or account documents. Never give out sensitive personal or financial information over the phone or by email unless you’re absolutely sure who you’re dealing with. If a stranger—or even someone you’ve only interacted with online—asks for money, that should be a major warning sign. And remember, tech companies like Apple or Microsoft will not call you unexpectedly about computer issues.
If you believe you’ve been targeted, report the scam right away. You can file a complaint with the Federal Trade Commission or with the FBI’s Internet Crime Complaint Center at www.ic3.gov. By reporting, you’re not only protecting yourself but also helping others avoid falling victim. Finally, keep educating yourself. Fraud tactics evolve quickly, but resources like the SchwabSafe Learning Center and government consumer protection sites can help you stay ahead of the latest threats.
Quick Red Flags to Watch Out For
Pressure to act immediately — threats of arrest, frozen accounts, or missed benefits.
Upfront payment requests — especially via gift cards, wire transfers, or cryptocurrency.
Unsolicited tech support calls — no legitimate company will call you out of the blue to fix your computer.
“Too good to be true” offers — prizes, grants, or investments that require a fee to claim.
Emotional manipulation — sudden pleas for help from a “friend” or “relative” you can’t independently verify.
