Money scams that target newcomers, and how to avoid them
In short: scammers often pretend to be the government, your bank, an employer or a relative in trouble, and push you to pay right now by gift card, wire, payment app or crypto. Real agencies don't demand payment that way. Stop, check with someone you trust, and contact the organization using a number you find yourself. Report scams at ReportFraud.ftc.gov.
Warning signs
- Someone contacts you unexpectedly and says there is a problem or a prize.
- They want you to act immediately and not tell anyone.
- They ask you to pay by gift card, wire transfer, payment app, cryptocurrency or cash.
- They ask for one-time passcodes, PINs, passwords or your Social Security number.
Common scams
- Government impersonators: a caller says you owe taxes, broke a law or have a problem with your status or documents, and threatens arrest. Government agencies don't demand payment by gift card, wire or crypto, and won't threaten you on the phone.
- Bank impersonators: a text or call says your account is locked and asks you to "move your money to a safe account" or read back a code. Your bank will never ask you to do that.
- Fake checks: you are sent a check for more than you are owed and asked to return the difference. The check bounces later and you owe the bank. See How to write, deposit and cash a check.
- Job scams: a job that asks you to pay for training or equipment, or to receive and forward money or packages. Moving money for strangers can make you part of a crime.
- Family emergency scams: a message from a "relative" at home or here who urgently needs money. Call them on the number you already have.
- Romance and investment scams: someone you met online builds trust over weeks, then asks for money or pushes a "guaranteed" investment, often in crypto.
- Fake transfer agents and rate offers: unlicensed sellers who promise a better exchange rate for sending money home. Use a licensed bank, credit union or money transfer company.
How to protect yourself
- Slow down. Honest organizations give you time.
- Hang up or don't reply, then contact the organization using the number on your card, statement or its official website.
- Talk to someone you trust before you pay.
- Never pay with gift cards for a bill or debt. Gift cards are for gifts.
If you have already paid
- Contact the company you used to pay (your bank, card issuer, payment app, gift card company or transfer company) straight away and ask them to stop or reverse it.
- Report it at ReportFraud.ftc.gov, and to your local police if you lost a lot of money.
- If your personal details were shared, consider a free credit freeze (see Credit reports and credit scores).
- Be wary of anyone who then offers to "recover" your money for a fee: that is often a second scam.
Handy tools
- Remittance cost comparer: compare two transfer options by how much arrives.
General information, not financial advice. Rules, fees and rates change and depend on your situation. Check with your bank, the provider or a qualified professional before you decide.