Common scams to avoid

How it works

Smishing is the term for text message scams (often from entities claiming to be a bank or federal organization), hoping to steal data and private information.

Example: You receive a text that says, “Your bank account has been locked. Click here to verify your identity.” The link leads to a fake banking site that captures your login info.

Vishing attacks are phone calls from scammers asking for a user’s information that they can then use to access bank accounts or other private data. These scammers may pretend to be a government entity or a bank in the interests of gaining the user’s confidence.

Example: A caller claims to be from the IRS, saying you owe back taxes and must provide your bank account number to avoid legal action. The IRS never contacts people this way, but the scammer uses fear to manipulate you.

How it works

This scam begins with the consumer receiving a fax, letter, or email from someone with a very confidential business proposal. The letter states that an individual, worth millions of dollars, has died without a will.

The writer is trying to keep the money from reverting to a corrupt government and requests assistance from the consumer. The victim is asked to provide an account number where the money can be transferred, and in exchange for this "service," the victim will make a profit.

A check is sent to the victim for deposit into their bank account. Then the victim is instructed to send funds back to the originator of the letter via wire, money orders, or money transfer agency in increments under $10,000, and keep the "extra" money in their account.

Shortly after the money is wired, the deposited check is returned as counterfeit to the victim’s account, no winnings are ever received and the victim is responsible for the entire amount of the check.

How it works

Many innocent older adults are falling victim to financial exploitation and robbed of their life savings every day. Financial exploitation against the elderly is defined as any illegal or improper use of an elder’s funds, property or assets. Examples of elder financial exploitation include:

Unauthorized account access. Stealing personal information to make withdrawals or open new accounts in the elder’s name.

Lottery or sweepstakes scams. Convincing the elder they’ve won a prize and must pay fees or taxes to claim it.

Abuse of legal authority. Misusing powers of attorney, conservatorships, or guardianships to control or drain the elder’s finances.

Pressure to make financial gifts or changes. Coercing the elder into giving away money, changing wills, or signing over property.

Fake charities or investment schemes. Soliciting donations or investments that are never used for their stated purpose.

How it works

Scammers will pose as gambling entities to gain access to your identity and savings. In this scam, consumers receive a phone call, email, or a letter stating that they have won a large sum of money in a lottery. The winner is told that a check will be sent to them to cover part of the taxes they'll owe. They are then instructed to deposit the check into their account, withdraw a specified amount within a few days, and send the funds via wire or money transfer agency to the lottery office. The letter promises the sender that once the funds are received, the remaining prize money will be forwarded to the winner.

Shortly after the money is wired, the deposited check is returned as counterfeit to the consumer's account and no winnings are ever received.

How it works

Scammers often target individuals through social media or dating platforms, posing as someone interested in a romantic relationship.

Here's how the scam typically unfolds:

Initial contact. You receive a message from a stranger expressing romantic interest.

Building trust. Over time, the scammer builds emotional connection through frequent communication and affection—often using a tactic called lovebombing, where they overwhelm you with attention to gain trust quickly.

Requests for money. Once trust is established, they begin asking for financial help or investments, promising to repay you.

Sudden disappearance. After receiving money, the scammer cuts off all contact.

Secondary scam. In some cases, they may reappear pretending to be a law enforcement agent offering to help recover your funds—only to demand more money or personal data.

How it works

Employment scams can be compelling, promoting convenience. They can use "recruiters" and onboarding processes that mimic legit human resources operations. Below are two examples of this type of threat.

In one version of this scam a "business", located outside of the United States, offers an open position to process checks from their U.S. customers. The job applicant is to deposit the checks into their account and wire 90% to the “employer” keeping the remaining 10%. The wires may go to various foreign countries. The check turns out to be counterfeit and the "employee" is responsible to their bank for the entire amount.

In another instance, a business claims it needs goods located in the United States. The applicant is asked to ship them to an address overseas at their own expense. The shipping fee will be reimbursed (with a counterfeit check). The items to be shipped are usually stolen or purchased with a stolen credit card.