# How to spot and avoid money scams

> Scammers rush you and ask for gift cards, wires, payment apps or crypto. Stop, verify on your own, and report to ReportFraud.ftc.gov.

Source: https://www.walletprep.com/learn/avoid-money-scams/ · Updated 2026-10-01 · Protect yourself

Most scams follow the same script: someone creates urgency, then asks you to pay in a way that is hard to undo, like gift cards, a wire, a payment app or crypto. If you spot the pressure and the payment method, you can stop almost any scam before money leaves your account.

## Key facts
- **The payment method is the biggest red flag.** Scammers ask for gift cards, wire transfers, cryptocurrency or payment app transfers because they are fast and hard to reverse. A real business or government agency won't insist on them.
- **Pressure is part of the script.** A deadline, a threat, a prize or a request to keep it quiet are all ways to stop you from thinking it through or asking someone.
- **Fake checks take time to bounce.** Banks often make deposited money available within days, but finding out a check is fake can take weeks. You owe the bank whatever you spent or sent.
- **Report every scam.** Report scams to the FTC at ReportFraud.ftc.gov. Reports help law enforcement find patterns and warn others, even when the money can't be recovered.

## The common scams
Impostor scams: someone pretends to be your bank, the government, a utility, a tech support team or a relative in trouble. They say there is a problem with your account or an urgent bill, and they need you to pay or share a code right now.
Fake job and fake check scams: a job or online sale sends you a check for more than it should, then asks you to send back the extra. Payment app scams: a stranger sends money by mistake and asks you to return it, or a seller takes payment and never ships.
Romance scams: a new online partner builds trust for weeks, then needs money for an emergency, travel or a fee. Crypto investment scams: someone, often met online, shows you big gains on a platform they control and urges you to put in more.

## The red flags they share
Watch for pressure to act now, a request to keep it quiet, a message asking you to verify your account through a link, and anyone who asks for gift cards, a wire, crypto or a payment app transfer. Promises of large, sure returns are a warning sign too.
A message can look real and still be fake. Caller ID, logos and email addresses can all be faked. Check by contacting the company or person yourself, using a number or website you already trust.

## What to do if you paid a scammer
Contact the company you used to pay as soon as you can. Call your bank or credit card company and ask them to reverse the charge or stop the transfer. For gift cards, call the card company and keep the card and receipt. For a payment app or a crypto exchange, report it in the app and ask to reverse it.
If you shared a password, change it. If you gave out your Social Security number or bank details, go to IdentityTheft.gov for a recovery plan. Watch for recovery scams: people who promise to get your money back for a fee are scammers too.

## Where to report it
Report the scam to the FTC at ReportFraud.ftc.gov. You can also tell your state attorney general, and report the account or profile to the website, app or platform where you met the scammer.
Reporting is worth doing even if your loss was small or you didn't pay. Shame keeps many people quiet, but scammers are skilled at fooling careful people.

## A worked example: a fake check from a new job
Sam takes a remote job found online. The employer mails a $2,450 check for office supplies, tells him to keep $450 as pay, and send $2,000 to their supplier.

- Check deposited: $2,450
- Sent to the supplier: −$2,000
- Looks like Sam kept: = $450
- Check bounces, bank takes it back: −$2,450
- Sam's loss: = -$2,000

1. The money shows up in Sam's account within days, so he sends $2,000 by payment app.
2. Weeks later the bank finds the check is fake and removes the full $2,450.
3. Sam ends at $450 − $2,450 = −$2,000. The $2,000 he sent was his own money, and the supplier was the scammer.

## Common mistakes
- **Trusting caller ID or a logo.** Scammers can fake the name and number that show on your phone and copy a company's emails. Hang up and contact the company yourself.
- **Sending money back after a deposit.** A real employer or buyer won't overpay and ask for the difference back. Wait for your bank to confirm a check has truly cleared, and ask the bank if you aren't sure.
- **Waiting to report.** The faster you contact your bank or the payment company, the better your chance of stopping a transfer. Call the same day, then report to the FTC.

## Questions people ask
### Can I get my money back after a scam?
Sometimes. Your chances depend on how you paid and how fast you act. Credit card charges can be disputed. Wires, gift cards, payment app transfers and crypto are harder, but call right away and ask anyway.

### How do I know if a text from my bank is real?
Don't tap the link or call the number in the text. Open your bank's app or call the number on the back of your card. Your bank won't ask you for your password or a one-time code.

### What if I gave a scammer my personal information?
Change any passwords you shared and turn on two-step login. If you gave out your Social Security number, visit IdentityTheft.gov and think about placing a credit freeze.

### Is it a scam if someone sends me money by mistake on a payment app?
It may be. Don't send it back yourself. Contact the payment app and let it reverse the payment, since the original payment may have come from a stolen account.

## Do this today
Agree on a family code word to use if anyone calls claiming to be a relative in trouble. Then save your bank's real phone number in your contacts and bookmark ReportFraud.ftc.gov.

## Sources
- [FTC: What to do if you were scammed](https://consumer.ftc.gov/articles/what-do-if-you-were-scammed)
- [FTC: How to avoid a scam](https://consumer.ftc.gov/articles/how-avoid-scam)
- [FTC: How to spot, avoid and report fake check scams](https://consumer.ftc.gov/articles/how-spot-avoid-and-report-fake-check-scams)
- [FTC: Job scams](https://consumer.ftc.gov/articles/job-scams)
- [FTC: What to know about romance scams](https://consumer.ftc.gov/articles/what-know-about-romance-scams)
- [FTC: What to know about cryptocurrency and scams](https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-scams)
- [FTC: Mobile payment apps and how to avoid a scam](https://consumer.ftc.gov/articles/mobile-payment-apps-how-avoid-scam-when-you-use-one)
- [FTC: ReportFraud.ftc.gov](https://reportfraud.ftc.gov/)

_General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act._