🛡️ Protect Yourself: Recognizing and Avoiding Common Scams and Fraud

Fraudsters are constantly coming up with new ways to separate people from their money, personal information, and peace of mind. Understanding how these scams work is the first step to staying safe.

If something sounds too good to be true — it probably is.

💼 Business and Investment Fraud

Scammers often promise big returns or easy money. They may target individuals through business proposals or investment opportunities that sound legitimate at first glance.

Common scams include:

• Advance fee schemes
• Nigerian letter or 419 schemes
• Ponzi and pyramid schemes
• Telemarketing fraud

👉 Tip: Always be skeptical of any offer that guarantees large profits with little risk or effort.

❤️ Charity and Disaster Fraud

In times of crisis, fraudsters exploit people’s goodwill. After high-profile disasters, fake charities often appear online, through social media posts, crowdfunding sites, or even phone calls.

Before you donate:

• Research the organization.
• Avoid clicking on suspicious links or responding to unsolicited messages.
• Give directly through official websites.

💰 Cryptocurrency Job Scams

As cryptocurrency grows in popularity, scammers have adapted. Some pose as recruiters for legitimate companies, convincing victims to deposit their own money to “complete tasks” or “verify accounts.” These jobs are fake, and the deposits are never recovered.

🚫 If a job requires you to send money first — it’s a scam.

👵 Scams Targeting Older Adults

Elder citizens are frequent targets of financial fraud. Criminals may pretend to be loved ones, government officials, or caregivers.

Here are some common tactics to watch out for:

• Romance scams: Fraudsters pose as romantic partners to gain trust and money.
• Tech support scams: Scammers offer to “fix” fake computer issues, gaining access to devices and sensitive information.
• Grandparent scams: Criminals pretend to be a relative in urgent financial need.
• Government impersonation scams: Victims are threatened with arrest unless they pay fines or fees.
• Sweepstakes and lottery scams: Fraudsters claim you’ve won a prize but demand a payment to release it.
• Home repair scams: Scammers collect payment for services they never perform.
• TV/radio scams: Fake ads for legitimate services like credit repair or reverse mortgages.
• Family/caregiver scams: Relatives or acquaintances take advantage of the elderly for personal gain.

🔍 More Scams to Watch Out For

1. Debt Collection or Debt Relief Scams

Scammers pose as debt collectors or relief agencies, promising to erase or reduce your debt — often for a hefty upfront fee.

Tip: Legitimate debt relief companies never demand payment before providing service.

2. Rental and Real Estate Scams

Fake rental listings appear online, often with prices that seem “too good.” Victims send deposits or application fees for properties that don’t exist or that the scammer doesn’t own.

Tip: Always verify listings, meet landlords in person, and never wire money to strangers.

3. Impersonation & Government Agency Scams

Scammers pose as IRS, Social Security, or law enforcement officials, claiming you owe money or are under investigation. They create urgency through threats of arrest or frozen accounts.

Tip: Real agencies will never demand payment over the phone or via gift cards or wire transfer.

4. Fake Product or Online Marketplace Scams

Fraudsters post fake listings for electronics, tickets, or luxury goods, collect payment, and deliver nothing — or counterfeit items.

Tip: Buy only from verified sellers and use secure payment methods that offer fraud protection.

5. “Pig-Butchering” Crypto & Romance Investment Scams

Scammers build long-term relationships with victims, often online, then persuade them to invest in fraudulent cryptocurrency schemes.

Tip: Be wary of anyone you meet online who offers investment opportunities or asks for financial help.

6. Phishing, Smishing, and Cyber Fraud

Fraudsters use emails, texts, or phone calls to trick you into clicking malicious links or giving up personal information.

Tip: Never click on suspicious links or attachments. Always verify the sender’s identity through official channels.

🧠 Protect Yourself

• Recognize scam attempts and stop communicating immediately.
• Create a family password — a shared phrase only your loved ones know.
• Research names, phone numbers, and email addresses before engaging.
• Take your time. Scammers rely on fear and urgency.
• Report threats. Call the police if you or a loved one is in danger.
• Be skeptical of unsolicited calls, emails, or door-to-door offers.
• Never send money or personal info to unverified people or businesses.
• Keep your software updated with reputable antivirus and firewalls.
• Disconnect from the internet if you get a pop-up or locked screen.
• Avoid downloading attachments from unknown sources.
• Protect your accounts if you suspect fraud — contact your bank and monitor for unusual activity.

📞 Learn More or Report Fraud

If you suspect you’ve been targeted by a scam or want to learn more about protecting your finances, visit:

• Minnesota Department of Commerce – Money & Finance
• File a Consumer Complaint

For additional information on common scams, visit the FBI’s official guide

Watch our podcast on scams and fraud!