Common Scams

Banking Scams

The most common banking scams include:

• Overpayment scams -  Someone sends you a check, instructs you to deposit it in your bank account, and wire part of the money back to them. But the check was fake, so you’ll have to pay your bank the amount of the check, plus you’ll lose any money you wired.

• Unsolicited check fraud - A scammer sends you a check for no reason. If you cash it, you may be authorizing the purchase of items or signing up for a loan you didn’t ask for.

• Automatic withdrawals - A scam company sets up automatic withdrawals from your bank account to qualify for a free trial or to collect a prize.

• Phishing - You receive an email message that asks you to verify your bank account or debit card number.

Prize scammers try to get your money or personal information through fake lotteries, sweepstakes, or other contests. Many claim that you’ve won a prize but must pay a fee to collect it. Others require you to provide personal information to enter a “contest.” These scams may reach you by postal mail, email, phone call, robocall, or text message.

Telephone scammers try to steal your money or personal information. Scams may come through phone calls from real people, robocalls, or text messages. Callers often make false promises, such as opportunities to buy products, invest your money, or receive free product trials. They may also offer you money through free grants and lotteries. Some scammers may call with threats of jail or lawsuits if you don’t pay them.

Ticket selling scams happen when a scammer uses tickets as bait to steal your money. The scammer usually sells fake tickets, or you pay for a ticket, but never receive it. They are common when tickets for popular concerts, plays, and sporting events sell out.

Government grant scammers try to get your money by guaranteeing you a grant for costs like college or home repairs. They ask for your checking account information. With it, they say they will "deposit the grant money into your account" or withdraw a “one-time processing fee.” In reality, government grants are rarely awarded to individuals. They usually go to state and local governments, universities, and other organizations. The money is awarded to help pay for research and projects that will benefit the public.

Some scammers take advantage of the public’s generosity. They especially take advantage of tragedies and disasters.

Pyramid schemes are scams that need a constant flow of new participants to keep them going. They are marketed as multi-level marketing programs or other types of legitimate businesses. They use new recruits’ "investments" to pay “profits” to those participating longer.

Pyramid schemes collapse when they can't recruit enough new participants to pay earlier investors. These scams always fail—it’s mathematically guaranteed.