Learn about the different types of fraud, the current trends and techniques criminals are using, and ways you can help avoid becoming a victim of fraud.
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Types of Fraud and Scams
Staying educated about current scams can help you avoid becoming a victim. The FTC’s Scam Alerts web page and the FBI’s Common Fraud Schemes web page are excellent resources for information about the latest scams.
There are a variety of types of scams always going around; we’ve outlined several below. For tips on how to avoid being a victim of scams, frauds or identity theft, check out our Best Practices section.
Common Types of Fraud and Scams
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Phishing - Phishing is a technique that uses deceptive emails, pop-up messages, text messages, or messages via social media designed to trick you into providing personal information to scammers. The messages often appear to be from legitimate businesses and may contain urgent statements to get you to act quickly and click on a link, open an attachment, provide account information, or change your password.
Don’t click that link or open that attachment! Doing so will direct you to a phony website or install malicious software on your computer– and any information you provide could be used to fraudulently access your accounts, make purchases, steal your identity, or more.
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Malware - Malware, or "malicious software", generally refers to any program that intentionally harms your computer and is typically installed without your consent. Viruses, worms, Trojan horses, and spyware are all examples of this invasive software. Malware can get into your computer by doing something as simple as clicking on an ad, going to a website or even unknowingly downloading a document. The malware "industry" has blossomed so much that some malware actually poses as anti-malware software so use extra caution when researching or purchasing anti-malware software.Your best defense is to keep your browser, operating system, and applications up to date, and to run updated anti-malware software.
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Telemarketing Scams - Telemarketing calls aren't just an annoyance, they're a common method scammers use to con you out of money or personal information.Phone scammers are great at pitching convincing stories – and they’ll tell you just about anything to get you to trust them. Common telemarketing scams include:
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IRS Scams - Especially common during tax time, scammers pose as an employee of the IRS demanding payment for hundreds or thousands of dollars in taxes. They often make threats, such as arrest if payments aren't made promptly.
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Sweepstakes Scams - It's probably a scam if a caller claims you've won a sweepstakes, prize or lottery and then asks you to pay money up front for taxes, fees, shipping and handling, etc.
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Other Scams include: Offers to lower your credit card rate or a free or low cost travel packages
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Nigerian scams – Nigerian scams begin with a letter or email offering you a large share of money if you can help the sender transfer money out of their country. In order to receive your share of the money offered, you are asked to pay advance fees or provide your bank account details to help the scammers get their money transferred. Once you pay the requested fees, the scammers often come up with reasons for additional, more expensive fees.
End result? They get your money, your bank account information, or both, and they never send the large share of money they promised. If they have your bank account information, they can impersonate you in order to drain your account or get you locked out of your own account.
Identity Theft
Identity theft happens when someone steals your personal information - such as your Social Security number, driver's licenses, account numbers, etc. - and uses that information to fraudulently make purchases, open accounts, apply for credit, pay bills or more, in your name. Not only can it cause significant damage to your credit, it can cost a great deal of time and money to resolve.
How do I know if you've been a victim of identity theft?
Stolen information can be used in a variety of ways. Possible signs that you identity may have been compromised include:
- Unauthorized charges on your credit card or bank accounts
- Unfamiliar accounts on your credit report
- Receiving bills for for credit cards you did not apply for
- No longer receiving bills or statements you should be receiving (sometimes fraudsters have enough information to change the address on your accounts)
- Having credit or debit card transaction declined or checks refused or returned knowing you should have sufficient funds in your account
- Having credit or loan applications declined knowing you have an acceptable credit score
Ways to protect yourself against identity theft
There are a number things you can do to reduce the risk of becoming a victim of identity theft. Exercising caution with regards to your personal information will greatly reduce your risk. Our Best Practices section provides many tips to safeguard yourself from identity theft.
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Please Note: All information on our security center resource pages is provided as a convenience to customers and non-customers alike.