Financial Scams and Fraud: Protect Yourself and Your Money
Written by LendingPoint Editorial Team
No one wants to lose money to a financial scam or fraud. In 2024, the Federal Trade Commission received about 2.6 million fraud reports, with consumers reporting more than $12.5 billion in losses, a 25% increase from the prior year.1
Keep yourself and your money safe using the resources below and know what to do if you’re a victim of a financial scam.
Most Common Scams
According to the FTC, the most reported scams in 2024 were:
Imposter scams
Scammers pretend to be someone you trust, like a government agency, bank, tech support, or a family member, and pressure you to send money or share personal information.
Online shopping scams
Fraud involving fake online stores, ads, or sellers that take a payment but never deliver the promised product or send counterfeit or incorrect items.
Business and job opportunity scams
Scams that promise easy income, remote jobs, or business opportunities. Victims are often asked to pay upfront fees, buy starter kits, or provide sensitive information.
Investment-related scams
Fraudulent offers promising high or guaranteed returns, often involving cryptocurrency, forex, or fake investment platforms. These scams accounted for the largest total losses in 2024.
Internet services scams
Scams tied to online services such as tech support, email, or internet accounts, where fraudsters claim there’s a problem and ask for payment or access to your device or accounts.
How To Protect Yourself
Signs It’s Likely a Scam
1) Urgent pressure or threats
Scammers often try to rush you. They may say you must act immediately to avoid:
- Account suspension
- Arrest or legal action
- Loss of a deal or prize
2) Requests for unusual payment methods
Be cautious if you’re asked to pay using:
- Account suspension
- Arrest or legal action
- Loss of a deal or prize
These methods are hard to trace and difficult to reverse.
3) Requests for personal or financial information
Scammers may ask for:
- Social Security numbers
- Online banking or card details
- Login credentials or verification codes
Legitimate companies rarely request sensitive information through email, text, or unsolicited calls.
4) “Too good to be true” offers
Watch for promises like:
- Guaranteed loan approval
- Huge investment returns with no risk
- Easy, high-paying remote jobs
- Prizes you didn’t enter to win
5) Messages from someone pretending to be a trusted source
Imposter scams are the most commonly reported. Be cautious if someone claims to be:
- A government agency
- Your bank or lender
- Tech support
- A delivery service
- A friend or family member in trouble
6) Unexpected requests for money or account access
Red flags include:
- A “relative” asking for emergency funds
- A company claiming there’s a problem with your account
- Tech support saying your computer is infected
7) Poor spelling, odd links, or unfamiliar email addresses
Many scam messages:
- Contain grammar or spelling errors
- Use look-alike web addresses
- Come from email domains that don’t match the company
8) You’re asked to keep it secret
Scammers may say:
- “Don’t tell your bank or family.”
- “This is a special or confidential offer.”
Secrecy is a major red flag.
Scam and Fraud Resources
To learn more about common scams and how to protect yourself, visit:
What to do if you have been a victim or how to report a scam:
FTC What to Do If You Were Scammed
LendingPoint will never contact you requesting money via a gift card, prepaid card or cash reload card, wire transfer, or a money transfer app as a condition for getting a personal loan.
Frequently Asked Questions About Financial Scams
What are the most common financial scams?
Common financial scams include impostor scams, online shopping scams, business and job opportunity scams, investment-related scams, and internet services scams.
What are the biggest warning signs that something is a scam?
Common warning signs include urgent pressure or threats, requests for unusual payment methods, requests for personal or financial information, “too good to be true” promises, messages from someone pretending to be a trusted source, unexpected requests for money or account access, suspicious links or unfamiliar email addresses, and demands for secrecy.
Why do scammers ask for gift cards, cryptocurrency, or wire transfers?
Scammers often request payment methods like gift cards, cryptocurrency, wire transfers, or payment apps to unknown recipients because these payments can be difficult to trace and are often hard to reverse.
Will legitimate companies ask for my Social Security number or login codes over email or text?
Be cautious. Scammers frequently ask for Social Security numbers, banking details, login credentials, or verification codes. Legitimate companies generally do not request sensitive information through unsolicited emails, texts, or calls.
What should I do if I think I was scammed?
If you believe you were scammed, act quickly: stop sending money or information, secure your accounts, and report the incident. You can find guidance and reporting options through the FTC’s “What to Do If You Were Scammed” and “Report Fraud” resources.
Where can I learn more about scams and fraud prevention?
Helpful resources include the Federal Trade Commission’s scam information pages and the FBI’s scam and safety guidance.
What is an impostor scam?
An impostor scam is when a fraudster pretends to be someone you trust, such as a government agency, bank, tech support, delivery service, or even a friend or family member, and pressures you to send money or share personal information.
Will LendingPoint ask for gift cards or wire transfers to get a personal loan?
No. LendingPoint will never contact you requesting money via a gift card, prepaid card, cash reload card, wire transfer, or a money transfer app as a condition for getting a personal loan.
Sources:
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or security advice. Fraud trends and statistics are based on publicly available sources and may change. No prevention strategy guarantees protection against scams. LendingPoint will never request payment via gift cards, wire transfers, cryptocurrency, or money transfer apps as a condition of obtaining a loan. If you suspect fraud or impersonation, contact LendingPoint directly using the information on our website.
