What are some classic warning signs of possible fraud and scams? | Consumer Financial Protection Bureau (2024)

FAQs

What are some classic warning signs of possible fraud and scams? | Consumer Financial Protection Bureau? ›

Asking for access to your money-such as your ATM cards, bank accounts, credit cards, cryptocurrency wallet keys or access codes, or investment accounts. Pressuring you to "act now" or else the deal will go away, or trying hard to give you a "great deal" without time to answer your questions.

Contacted unexpectedly by phone, email, text, direct message or pop-up with a request for personal information or money. Bank of America will never text, email, call, or visit you at your home asking for personal or account information. Remember, never click a link or download an attachment from someone you don't know.

Scammers are always looking to separate you from your money in business transactions. If it sounds too good to be true, it is. Common scams include advance fee schemes, Nigerian letter or 419 schemes, Ponzi schemes, pyramid schemes, and telemarketing fraud schemes.

Early fraud warnings are notices generated to flag payments that are suspected to be fraudulent. An early fraud warning is created when a cardholder lodges a claim of fraud with their issuing bank and occurs before an official chargeback.

Unsolicited offers: Don't respond to unsolicited cold calls, emails, junk mail, late-night commercials or infomercials, or social media posts that are either overly attractive or fear-inducing. These are all common tactics scammers use to entice you to engage.

A fake cashier's check is sent, which the scammer asks the recipient to cash and then wire back the funds to cover the taxes and fees. Scammers might go to an online auction or classified listing site and offer to buy an item for sale, pay for a service in advance, or rent an apartment.

 Many large cash transactions when not expected.  Payments for unspecified services, or payments for services that appear excessive in relation to the services provided.  The forming of companies or trusts with no apparent commercial or other purpose.  Long delays in the production of company or trust accounts.

You might be dealing with an online scammer if they request sensitive personal information, money, or insist on speaking on a chat app of their choice. You might be dealing with an online scammer if they request sensitive personal information, money, or insist on speaking on a chat app of their choice.

Which is the most common way frauds are identified? ›

One of the most successful ways to identify fraud in businesses is to use an anonymous tip line (or website or hotline). According to the Association of Certified Fraud Examiners (ACF), tips are by far the most prevalent technique of first fraud detection (40 percent of instances).

Scammers often come up with various reasons, such as emergencies, medical expenses, or travel costs. Never send money to someone you've only met online.

The most common warning signs include: Accounting anomalies, such as growing revenues without a corresponding growth in cash flows. Consistent sales growth while competitors are struggling. A significant surge in a company's performance within the final reporting period of a fiscal year.

Asking for access to your money-such as your ATM cards, bank accounts, credit cards, cryptocurrency wallet keys or access codes, or investment accounts. Pressuring you to "act now" or else the deal will go away, or trying hard to give you a "great deal" without time to answer your questions.

Missing documents

When the frequency of occurrence becomes too often, it may be a sign of ongoing fraud within the organization. Missing documents that are fraud red flags include registration of motor vehicles, lists of sales and purchases, checkbooks, and inventory reports.

Did I get an email with a subject line that is irrelevant or does not match the message content? Is the email out of the ordinary, or does it have bad grammar or spelling errors? Is the email asking me to look at a compromising or embarrassing picture of myself or someone I know?