It’s a sad reality that not everyone is trustworthy, and there will always be people looking to trick others. Anyone can fall victim to fraud, but you can take preventative steps to keep yourself safer.

This post walks through the most common types of fraud, how they work, and how to protect yourself.

Common types of fraud and scams

The concept of scams is nothing new, but the scams themselves change all the time. Fraudsters use clever ways to persuade people into thinking their lies are true. Here are several common types of fraud and scams to look out for. 

Identity theft

What is identity theft? 

Identity theft happens when someone impersonates you, often to access your financial accounts.  

Personal information like your Social Security number and birthdate might be stolen through data breaches, malware, or leaked data. If someone has access to your information, they might use it to take your money, open up credit cards in your name, file tax returns, or apply for insurance.

How can you prevent identity theft? 

Don’t share personal data with anyone unless you need to, especially if an unknown number calls to verify your personal information. Set up banking alerts, use two-factor authentication to secure your bank and email accounts, and regularly monitor your credit report for suspicious activity.

Phishing

What is phishing? 

Fraudsters use phishing to trick people into providing personal information. You may receive a link that goes to a fake website or downloads malicious software (malware). Malware on your phone or computer could leak sensitive information.  

Text: When phishing scammers reach out over text, it’s often to convince you that you need to act urgently on something. Ironically, these scams often warn that your personal information has been compromised.  

Email: Common email phishing attempts include a lie that you’ve missed a payment, need to update an account, or have won a free prize. The website address will likely mention a reputable institution. In reality, it’s a fake website that steals your banking information or prompts you to transfer money.

Social media: In some cases, clicking a link sent on social media may wind up giving them access to your account. Scammers will then demand a fee to hand your accounts back over. 

How can you prevent phishing scams? 

Don’t click on suspicious links – signs like generic “Hi Dear” greetings, odd grammar, and urgency are all red flags. Installing malware protection can also help prevent phishing attempts from crossing your path. 

Spear phishing

What is spear phishing? 

Spear phishing is a type of personalized phishing that fakes messages from seemingly legitimate sources. Email messages may appear to be from your employer and include a link that downloads malware onto your computer. 

How can you prevent spear phishing? 

To protect yourself against spear phishing scams, double check where suspicious messages come from. For instance, the email address may contain your boss’s name but not be the right email address. Don’t open email attachments or click on links unless you’re 100% sure they’re legitimate.  

Credit card fraud

What is credit card fraud? 

You’re a victim of credit card fraud if someone steals and uses your credit card information to buy things. It’s still one of the most common types of scams, according to the Federal Trade Commission (FTC). 

How can you prevent credit card fraud? 

To protect yourself against credit card fraud, examine your statements regularly to catch any purchases you didn’t make. You can also set up account alerts to flag large purchases. 

Romance scams

What are romance scams? 

Scammers pretend to be romantically interested in people online and convince them to send money. Romance scams can go on for years and lead to large losses. Typically, you can’t get the money back because the funds were transferred willingly. 

How can you prevent romance scams? 

The best way to prevent romance scams is to be cautious about romance that only happens online. Even if you meet them in person, romantic partners don’t need to know your financial details.

Fake check scams

What are fake check scams? 

Fake check scams occur when a fraudster sends you a check, but also asks you to send them money back. The check will bounce and leave you empty-handed. This type of fraud often happens during prize scams and job opportunity scams, which you can read about below.

How can you prevent fake check scams? 

In a fake check scam, the fraudster may ask you to send them money back with gift cards, money order, or cryptocurrency transfers. Never comply.

Prize scams

What are prize scams? 

Prize scams are a sneaky way for fraudsters to find out your personal information after pretending that you’ve won a sweepstakes or high-value item. This communication may happen via phone call, text, email, or snail mail. Once they get you to bite, you’ll need to provide personal information or make a payment before you can get your prize.  

How can you prevent prize scams?

Be wary of any type of communication that says you’ve won something but you’ll have to pay a fee in order to claim it. You also shouldn’t give personal information like your bank account number or credit card number in order to claim a prize. 

Job opportunity scams

What are job opportunity scams? 

Job opportunity scammers post jobs on legitimate platforms, so they can be tough to spot. Someone impersonating an employer may promise a job but ask you to first spend money or provide personal information. They may give you a fake check before asking you to purchase equipment or merchandise.

How can you prevent job opportunity scams? 

Look up the company the job is associated with. Try typing “scam” or “fraud” with the company name and check the results. Also, call the company using the phone number listed on its official website, not the job listing, to ask about the job.

Debt collection scams

What are debt collection scams? 

Debt collection scams are when someone calls or emails you, saying you have an unpaid bill. They’ll often threaten legal action or say you could be jailed if you don’t pay up.

How can you prevent debt collection scams? 

Keep tabs on your debt so you can verify whether someone is calling about real debt. Double check your credit report to account for all debts. 

15 ways to protect yourself from fraud

It may seem like scammers never sleep. Thankfully, you can take steps to protect yourself so you don’t have to always actively be on guard. 

1. Use a password manager

A password manager stores your passwords securely, so you don’t have to remember them on your own. That way, you can pick more complex passwords that are harder to hack, without worrying you’ll forget them. 

2. Consider Credit Lock (via Experian)

Lenders that provide credit cards and loans need to see your credit report. To prevent identity theft, freeze access to your credit report for free with a credit lock. With this extra layer of security, scammers will have difficulty opening a new credit card or taking out a loan without your permission.      

3. Be wary of email attachments

Attachments might not be what they claim to be. Don’t click on them unless you’re expecting them and you’re absolutely sure where they came from.

4. Don’t click on links

If you don’t know who the sender is or notice that a web address seems unusual, don’t click the link! It may download malware onto your computer. 

5. Two-factor authentication

Passwords can be hacked. Have websites send you a text or email to confirm you’re the one logging into your account.

6. Shred private documents

Documents you no longer need may contain sensitive personal information, like your Social Security or bank account numbers. Don’t just throw them out — shred them and spread the pieces across different loads of trash. 

7. Set up alerts

Create alerts for activity that could be suspicious, like large purchases or changes to passwords and personal information. 

8. Secure personal information

Keep paper and electronic documentation secure and don’t share access. 

9. Use identity theft protection services

Identity theft protection companies can monitor your credit, alert you of suspicious activity, and possibly help recover lost money. If your data has been exposed in a data breach, you may be eligible for free identity theft monitoring.

10. Call to verify

If a person claims to be affiliated with a certain company, look up the company independently. Make sure the number you were given matches the one online, and call to verify the information you were given.

11. Use private WiFi

Bad actors can access your computer or cell phone if you join public WiFi. If you’re doing anything at all that involves personal information, don’t join the public WiFi to do it. 

12. Monitor your credit report

Checking your credit report regularly will help you find out if unauthorized accounts have been opened. You can access free weekly credit reports online from Equifax, Experian, and TransUnion.  

13. Update your contact information

Make sure your bank and government agencies like Social Security have the right contact information. Banks can get a hold of you if they notice suspicious activity, and you don’t want statements sent to the wrong address. 

14. Question everything

Don’t give in to pressure tactics to give information right away. Ask for a callback number, do independent research, and think carefully before taking actions that reveal your personal information to a third party. 

15. Follow fraud trends

Follow the Federal Trade Commission’s reports on the latest scamming trends so you know what to look out for.