The money essentials / 04
Scam awareness,
made understandable.
Learn the scams that cost people the most, spot the warning signs they share, and know exactly what to do if a message feels wrong.
01 / Know the scams
Scammers sell urgency, not products.
Most scams work by getting you to act before you check: a stranger you come to trust, a warning that scares you, or a return that seems too good to miss. A short pause and an independent check can help you spot a scam before acting.
Reported losses for 2025. Many scams are never reported, so the real totals are likely higher.
Fake investment platforms.
A friendly stranger builds trust over weeks, then shows you “profits” on a trading app or website that imitates a real one. Early withdrawals may work. When you try to take out more, surprise “taxes” or “fees” appear. The FBI calls this cryptocurrency investment fraud; it is often nicknamed “pig butchering.”
Impostors: your bank, the government, a company.
A call, text or email says your account is compromised, you owe money, or your identity was stolen, and you must move money to keep it “safe.” Imposter scams were the most reported fraud in 2025, with $3.5 billion lost.
Hot tips on social media.
Promoters hype a little-known stock or coin in chats and posts so the price jumps, then sell to the people who bought in. When the hype stops, the price can collapse. This is called a pump-and-dump.
Phishing texts and emails.
Fake delivery notices, refund offers or “suspicious activity” alerts send you to a website that looks real. Anything you type there, like a password or card number, goes to the scammer.
Recovery scams.
After a loss, “law firms,” “investigators” or even fake FBI profiles offer to recover your money for a fee. The FBI says its IC3 never charges to recover funds and never contacts people through social media.
How does a fake investment platform keep people hooked?
By letting the account show growing balances and allowing a small early withdrawal, the scam feels proven. The FBI describes the full pattern, from first contact to the “fees” trap, in its cryptocurrency investment fraud guide ↗.
Can scammers fake a phone number or a company’s name?
Yes. Caller ID, text sender names and email display names can all be faked, so a familiar number or logo is not proof. Hang up and contact the company using a number you find yourself, such as the one on the back of your card.
Why would a scammer tell me to move my money to a “safe account”?
Because once you move it, the money is theirs. Real banks and government agencies do not ask you to transfer your savings to a new account to protect it.
Learn more: FTC data on imposter scams ↗ · SEC alert on social-media stock tips ↗
02 / Spot the red flags
The same warning signs show up again and again.
Scams change their stories, but not their tactics. If a message has even one of these signs, slow down and check it independently before you click, pay or share anything.
Scam or verify first?
Fictional messages · for practice
Choose a message to see its red flags and the safest next step:
“Bank alert: Did you make a $849 purchase at an electronics store? Reply YES or NO. To speak to our fraud team, call 1-800-555-0142.”
Verify it yourself
Red flags in this message
- It creates urgency with a large, unexpected charge.
- It gives you a phone number to call instead of the one you already trust.
What to do
Some banks do send real fraud alerts like this, so the safe move is to verify, not panic. Don’t call the number in the text. Call the number on the back of your card or open your bank’s app yourself.
“Our AI trading bot earns 3% a day, guaranteed. Join our private WhatsApp group now, only 5 spots left tonight.”
Scam
Red flags in this message
- A guaranteed return, and 3% a day is impossible to sustain.
- Pressure: “only 5 spots left tonight.”
- A move to a private chat.
What to do
Don’t join or send money. If you want to check a person or firm, search Investor.gov or FINRA BrokerCheck, and report the pitch at ReportFraud.ftc.gov.
“This is a federal agency. You owe back taxes and a warrant will be issued today unless you pay $2,000 in gift cards. Do not tell anyone.”
Scam
Red flags in this message
- Payment by gift card. No real government agency asks for this.
- A threat and a same-day deadline.
- “Do not tell anyone.”
What to do
Hang up. Look up the agency’s official contact details yourself. If you already bought gift cards, contact the gift card company right away and report it to the FTC.
“We are a law firm working with federal investigators. We located your lost crypto and can return it after a $1,500 processing fee.”
Scam
Red flags in this message
- It targets someone who already lost money.
- An upfront fee to get your money back.
- A claimed link to law enforcement.
What to do
Don’t pay. The FBI says its IC3 never charges to recover funds. Report the offer at ic3.gov, the FBI’s only official site for these reports.
Phone numbers and details are made up. When in doubt, contact the organization using contact details you find yourself.
Is a website safe if it shows a padlock?
Not necessarily. The padlock means your connection to the site is encrypted. It does not mean the site belongs to who it claims to be. Scam sites can have one too.
What if the person seems to know a lot about me?
Details like your name, address or the last digits of a card can come from data breaches or social media. Knowing them does not make someone legitimate.
What does a real investment professional have to show me?
Brokers and advisers are generally registered, and you can check them for free. The SEC’s five red flags of investment fraud ↗ include unregistered sellers and promises of high returns with little risk.
Learn more: FTC: only scammers ask for gift cards ↗ · FTC: spotting scam texts ↗
03 / Protect and report
Pause, verify, then report.
“If a message makes me feel rushed or scared, I stop. I contact the company myself, using contact details I already trust.”
Stop and verify on your own.
Don’t use the phone number, link or app in the message. Call the number on your card or statement, type the official web address yourself, or talk to someone you trust first.
Check who you’re dealing with.
Look up investment professionals on Investor.gov or FINRA BrokerCheck before sending money. Search the company’s name with words like “scam” or “complaint.”
If money already moved, act fast.
Contact your bank or the payment company right away and ask whether the payment can be stopped or reversed. Stop sending money, change passwords you shared, and be wary of anyone who offers to recover your loss for a fee.
Report it.
Reports help investigators connect cases and warn others. Use the official sites below; you can report to more than one.
Scam texts: forward them to 7726 (SPAM) so your carrier can block similar messages.
What if I already paid with a gift card?
Contact the company that issued the card right away, tell them it was used in a scam, and ask for a refund. Keep the card and receipt. Then report it to the FTC. FTC gift card advice ↗
Will reporting get my money back?
Not always, and no one can promise that it will. Reports still matter: they help investigators track scammers and warn others. Be cautious of anyone who guarantees recovery or asks for a fee to get your money back.
Is there help for older investors?
The FINRA Securities Helpline for Seniors, 844-574-3577 (weekdays, 9 a.m. to 5 p.m. Eastern), helps older investors with questions and concerns about brokerage accounts and investments. FINRA helpline ↗