Last updated April 2026
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The world is full of con artists who relentlessly seek to steal your money. And they’re now using AI to create convincing fake websites, emails, texts, audio, and video for their scams.
Fraud losses reported to the Federal Trade Commission (FTC) hit a record $12.5 billion in 2024, up 25 percent from the previous year. The FTC’s Consumer Sentinel Network Data Book 2024 reports that investment scams, romance scams, crypto scams, and imposter scams are driving much of the increase.
Based on our decades of consumer reporting and talking with thousands of people about how they were scammed, here are 12 strategies to reduce your chances of becoming a victim of fraud.
1. Be skeptical.
Question everything: Telemarketing calls, mail solicitations, email offers, unknown websites, social media posts, and all advertisements. Con artists can make their scams look and sound legitimate, using phony claims, bogus testimonials, and forged seals of approval.
With most rip-offs and scams, the warning signs are there, but you need to watch for them. Don’t let greed override common sense; otherwise, you may wind up giving your money or sensitive personal information to a con artist. Take your time, think things through, and check it out before you respond.
Trust your gut. According to a survey by the Better Business Bureau, most people who were targeted by a scammer, but didn’t take the bait, said it didn’t feel right, so they ended the engagement.
2. Don’t click on links in email or text messages.
Thieves prefer to hack the weakest link in a long security chain, and that link often is you. They’ll “phish” for your login credentials by sending you an email, text, instant message, or online pop-up that looks like it comes from your financial institution, credit card company, package-delivery service, or other trusted business. Click on one and you’ll land on a bogus website that looks legit, where you will be asked to log in to your account or provide payment info. Obey and you’ve let the thieves in.
Always access your online accounts, especially financial accounts, by typing the legitimate URL into the browser’s address bar, or by using a browser bookmark or the official app for that company or financial institution.
3. Open and read your postal mail.
Financial institutions and government agencies will send important notices via the U.S. Postal Service. If someone is attempting to drain your retirement account, you’ll likely get a letter about it, as well as email or text-message alerts, if you’ve signed up for those. If your personal information has been compromised in a data breach, you’ll learn about it in a letter mailed to you. Open and read your mail, even if you think it might be junk.
4. Use a credit card for online and mail-order purchases.
A credit card gives you better fraud protection than a debit card. Under the federal Fair Credit Billing Act, if you pay with a credit card and there’s a problem after the sale—you don’t receive the merchandise, get charged for something you didn’t order, the item is defective, or you’re unhappy with the service—you can dispute the charge with the credit card company. It must then remove that charge from your bill while investigating (you can dispute charges even after you’ve paid the bill). That’s not the way things work with debit cards; the money has already been withdrawn from your account, and resolving the dispute could take weeks.
Some people say they’re afraid of using credit cards for phone or online purchases. But that’s exactly what credit cards are designed for; if there’s a problem, the credit card company must handle it. This doesn’t mean you can be careless and buy from any website you stumble across, but credit cards are the safest way to pay.
5. Don’t pay via crypto, payment apps, gift cards, or wire transfers.
These types of payments are instant and irreversible and therefore preferred by scammers. Government agencies and legitimate businesses accept credit and debit cards; they don’t insist on payment via gift cards, payment apps, crypto, or wire transfers.
A common “work from home” scam involves sending a “new employee” a check or money order for more than the amount needed, with instructions to deposit the check or money order and wire back the extra amount. The money deposited may show up in your bank account, but weeks later, when the check or money order is found to be bogus, you’ll be forced to repay the bank the amount you withdrew and wired to the scammers. Remember: You are ultimately responsible for any checks or money orders you deposit.
6. Government agencies also never demand payment via phone, text, or email.
If there’s a problem with your account, Medicare, the IRS, Social Security, or other government agencies will mail you a letter; they will never demand instant payment via phone, text, or email. And only scammers threaten consequences if you don’t pay immediately via irreversible methods like gift cards, wire transfer, a payment app, or cryptocurrency. Government agencies don’t accept those payment methods.
7. Guard your private information.
Armed with your bank account number and login information, a con artist can drain your savings. Phone bandits often pose as bank employees who say they need your personally identifiable information, such as your Social Security number or PIN to resolve a problem with your account. Or they’ll ask you to provide them with the code you receive from your bank via text or email. Don’t do it!
Your Social Security number is especially dangerous in the wrong hands. A thief can use it to steal your money and identity. Social Security numbers are also used to access many medical records, so guard yours and share it only with those you know and trust—and those who need it.
8. Don’t trust caller ID.
Caller ID is no longer trustworthy; it can easily be spoofed to display any name and number the caller wants and has become a tool for deception. By spoofing a number, the criminal caller can make you think they’re with your bank or credit card company, the local police department, or a government agency. It’s a clever way to build trust and get you to let your guard down.
If the number isn’t familiar, let the call go to voicemail. Scammers will often hang up. By listening to the message at your convenience, it’s easier to determine whether the call is legit and warrants a callback. If you answer the phone and the call seems suspicious, then hang up! The longer a con artist can engage you on the phone, the more likely you are to do what they want.
9. Don’t be fooled by 'free trial' offers and money-back guarantees.
No-risk offers are confidence builders designed to encourage you to make a purchase without thoroughly evaluating the product or service. With most “free trial” offers, you need to provide a credit or debit card number to cover shipping, which often ends up costing more than the product is worth. Bad actors will use that payment information to automatically enroll you in an ongoing subscription, without your permission, which can be difficult to stop.
A money-back guarantee is only as good as the company that offers it. Sometimes, rules are so restrictive that it’s impossible to get a refund. We’ve seen cases where merely opening a box voids the offer. If you’re allowed to return the product, you may be required to pay the shipping costs.
10. Don’t pay to enter a contest or claim a prize.
It’s illegal to require a payment or purchase to enter a sweepstakes. That’s why legitimate contests include a “no purchase necessary” option. And don’t pay to claim a prize you supposedly won—especially from a contest you didn’t enter. Never give your credit card, debit card, or checking account routing number to pay a processing, shipping, or handling fee, or taxes owed.
11. Get it in writing.
Verbal promises don’t count. If a salesperson promises that a fitness center will add a pool next year, have that added to your gym contract before you sign. If a car dealership promises oil changes for life, have them write it up and sign it. In fact, most contracts specifically state that verbal promises are not binding. So read, understand, and agree to the terms before you sign.
12. Take your time.
Don’t let anyone rush you into buying something. It’s your money! Anyone offering a real bargain doesn’t need to use high-pressure sales tactics. If you’re told the deal is off if you walk out the door or hang up the phone, do just that.
Don’t say “yes” to unknown telemarketers, even those who claim to be calling for a charity or nonprofit group. If you want, ask them to send you more information. And don’t respond to calls, texts, letters, or emails that require an immediate response. That’s a big red flag.
Anyone can fall victim to a scam. Fraudsters know what buttons to push to get you off balance, exploit your emotions, and scare you into responding quickly without thinking.
Don’t let them take advantage of you. Before you do anything: Slow down, avoid going into panic mode, and check it out. Talk to a friend or family member, get advice from the AARP Fraud Watch Network helpline at 877-908-3360 (you don’t have to be an AARP member to use this service), or contact your local Better Business Bureau.
Contributing editor Herb Weisbaum (“The ConsumerMan”) is an Emmy award-winning broadcaster and one of America's top consumer experts. He has been protecting consumers for more than 40 years, having covered the consumer beat for CBS News, The Today Show, and NBCNews.com. You can also find him on Facebook, Blue Sky, X, Instagram, and at ConsumerMan.com.