Avoiding Scams: Frequently Asked Questions
Scammers target people of every age and income, and they keep changing their methods. Knowing the warning signs is your best defense. Here are answers to common questions.
What are the most common scams?
Frequent ones include impersonation of government agencies, banks or tech support; phishing emails and texts that imitate real companies; fake invoices aimed at businesses; romance and investment scams; and requests for payment by gift card, wire or cryptocurrency. Fake charity appeals often surge after disasters.
How can I recognize a scam?
- You are pressured to act immediately.
- You are asked to pay with gift cards, wire transfers or cryptocurrency.
- Someone demands secrecy or threatens arrest or lawsuits.
- You are asked for your Social Security number, passwords or one-time codes.
- An offer promises guaranteed high returns or something free that requires an upfront payment.
Will the IRS call or email me demanding payment?
The IRS generally begins contact by mail, and it does not demand payment by gift card or threaten immediate arrest. If you get such a call, hang up. If you are unsure whether a notice is real, do not use contact details in the message. Look up the agency yourself and call, or ask us. The IRS lists current scams at irs.gov.
What should I do with a suspicious email or text?
Do not click links or open attachments. Verify the sender by contacting the company through a number or website you already trust. Delete the message, and report it to your email provider. Phishing that mimics the IRS can be reported to the IRS.
How do I protect my accounts?
Use unique, long passwords and a password manager, turn on multi-factor authentication, keep software updated and review statements regularly. Consider freezing your credit with the credit bureaus, which is free and prevents new accounts from being opened in your name.
What about investment scams?
Be wary of unsolicited offers and promises of high returns with little risk. Verify the seller and the product before sending money. Investor.gov provides tools to check whether a person or firm is registered.
What if I have been scammed?
Act fast. Contact your bank or card issuer, change your passwords, place a fraud alert or freeze on your credit, and report the incident to the Federal Trade Commission and local police. If your tax information was stolen, tell us promptly and see our IRS problem resolution services.
If you are unsure about a message or a request, contact us before you respond.
This article is general information, not tax, legal or investment advice for your specific situation.