Last updated March 2026
The world is filled with shady characters. Con artists and disreputable companies will do whatever it takes to steal your money and identity. And they’re using increasingly so phisticated methods to scam you. AI allows criminals worldwide to create convincing fake websites, emails, texts, audio, and video to make their cons more polished and personalized.
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 2024 Consumer Sentinel Report warns that investment scams, romance scams, crypto scams, and imposter scams are driving much of the increase.
Based on my 45 years of consumer reporting and talking with thousands of people about how they were scammed, here are 10 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. Don’t take anything at face value. 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 be looking 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.
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 is often 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. Do so 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. 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.
4. Don’t wire money to strangers.
No legitimate transaction involves receiving a check or money order for more than the amount required, with instructions to deposit it and wire back the extra amount. The money may appear in your bank account, but weeks later, when the check or money order is found to be bogus, you’ll be required to pay back the bank the amount you withdrew and wired to the scammers. Remember: You are ultimately responsible for any checks or money orders you deposit.
5. Guard your private information.
Armed with your bank account number and login information, a con artist can drain your account. Phone bandits often pose as bank employees who say they need your personally identifiable information (PII) to resolve a problem with your account. Don’t do it! Those who need your sensitive PII already have it. They would never call you or send you an email asking for it.
Your Social Security number is also 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 financial and medical records. So, guard that number and only give it out to someone you know and trust.
6. 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. In recent years, it 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, trust your gut and hang up. The longer a con artist can engage you on the phone, the more likely you are to do what they want.
7. 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, the rules are so restrictive that it’s impossible to get a refund. I’ve seen cases where merely opening the package voids the offer. If you’re allowed to return the product, you may be required to pay the shipping costs.
8. 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 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. They’re required to remove that charge from your bill while they investigate. Not so with a debit card. The money has been withdrawn from your account, and resolving the dispute could take weeks.
Some people tell me they’re afraid of using a credit card for phone or online purchases. But that’s just what a credit card is 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 you can shop online, through the mail, or over the phone.
9. Government agencies never demand payment via phone, text, or email.
If there’s a problem with your account, Medicare, the IRS, and Social Security will send you mail, and they’ll never demand instant payment via phone, text, or email. Only scammers threaten consequences if you don’t pay immediately, and the government won’t ask you to pay via gift card, wire transfer, or cryptocurrency.
10. 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. We’re all vulnerable. 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 and check it out. Talk to a friend or family member, call the AARP Fraud Watch Network (you don’t have to be an AARP member to use this service), or contact your local Better Business Bureau office.
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.