1. Cryptocurrency Scams

Even if you know your Bitcoin from your Ether, keeping current with the latest cryptocurrencies is challenging. Scammers know the average person finds the topic confusing, so it's hardly surprising that cryptocurrencies feature in many financial cons.

How criminals use crypto to hoodwink people out of their money varies. However, the Federal Trade Commission (FTC) recommends staying alert to the following red flags:

• Companies or organizations demanding payment in cryptocurrency and refusing traditional forms of payment
• Individuals offering crypto investment advice or asking for cryptocurrency payments on dating websites
• Advertisements, phone calls or private messages offering "risk-free" cryptocurrency investments or claiming unrealistically high rates of return
• Offers of free cryptocurrency
• Companies offering vague "investment opportunities" with limited information on how they plan to manage your money

Bear in mind that some crypto scammers impersonate legitimate businesses and government agencies. However, it's important to know that no genuine organization will ask you to send payments in cryptocurrency. Never click on links in unexpected messages or emails, even if you recognize the company's name.

2. Debt Collection Fraud

Debt collection fraud is another common technique scammers use to cheat people out of their money. In this type of scam, criminals may contact you by phone, email or other means and demand payment to settle a debt.

Sometimes, the debt is entirely fabricated. Alternatively, they may ask you to repay a canceled or forgiven debt. Scammers using this technique are often threatening or coercive, making resisting their tactics very stressful.

Fortunately, there are a few ways to spot this financial scam. A legitimate debt collector will never threaten or intimidate you into making a payment. Debt collection fraudsters often threaten their victims with jail if they don't pay, but the truth is you won't be imprisoned for owing money. 

A scammer may appear to know surprisingly little about you. A genuine collection agency should know information such as your address and date of birth, so anyone asking for this information is likely a scammer. Furthermore, a real debt collector should be happy to share their full name and information about their company. If they won't, they're probably not genuine.

Spotting a debt collection scam can be challenging if you don't know what you owe. Regularly checking your credit report and knowing the exact balance of any genuine debt can help you determine the validity of any unexpected contact.

3. Phishing Scams

During a phishing scam, a fraudster will send you an email, a text message or another form of communication asking you to provide sensitive information. They'll usually pose as a legitimate organization, such as your bank, to trick you into sharing information you wouldn't usually provide. For example, they may ask for your bank account or debit card information.

Scammers can use this information to set up fake accounts in your name or access your existing financial accounts. Therefore, providing the information they ask for can put you at risk of financial loss and identity theft.

Communications from fraudsters can look surprisingly similar to genuine correspondence from your bank or another institution. To help you tell the difference, the FTC recommends looking for the following warning signs:

• Generic greetings, especially if the sender doesn't address you by name
• Messages saying your account is suspended or on hold due to a payment issue
• Messages asking you to click on a link to provide up-to-date payment information

A real bank, insurance company or other financial entity will never ask you to click on a link to update your billing information. Clicking on these links can infect your device with malware, so you should never open them. If in doubt, contact the organization using the contact details on the official website (not those provided in the suspicious correspondence) to verify whether the communication is genuine.

What to Do If You Suspect a Financial Scam

If you receive a suspicious message and think it could be a scam, reporting it can help bring the fraudster to justice. You can locate the correct agency to report the scam by completing the agency finder questionnaire on the usa.gov website.

If you already responded to a fraudulent message, there are things you can do to protect yourself. Your bank may help you get your money back if you paid a scammer with a debit or credit card or if you believe a fraudster has access to your bank account.

If you give a scammer your personal information, you may be at risk of identity theft. Report the incident at IdentityTheft.gov. This service provides a free recovery plan to help you avoid the negative impacts of identity theft.

Installing security software on all your devices helps protect you against malware in malicious emails, texts and instant messages. It's also wise to use strong passwords for your online accounts and change them regularly to keep scammers out.

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