7 Tips to Stay Safe While Online Shopping
December is National Identity Theft Prevention and Awareness Month which especially important as we head into a holiday season. Online retail...
4 min read
Kamel LoveJoy
:
Jul 1, 2025 5:00:00 AM
You work hard for your money, and it’s important to protect it from the growing number of identity theft and financial scams out there. Fraudsters are constantly coming up with new ways to steal your money, but by staying informed, you can learn how to avoid scams and keep your finances safe. Here’s a look at common financial scams and how you can spot and avoid them.
A common scam involves receiving a check for more than expected, and the scammer asks you to send back the extra amount. Whether it’s through a fake job offer or a prize you never entered, these scams can leave you in financial trouble.
How to avoid it:
Don’t accept checks for more than the agreed amount.
Never send money back after receiving a check.
Use trusted online payment services to buy or sell products, and always verify who you're dealing with before accepting payments.
With the rise of cryptocurrency, financial fraud related to digital currency has also increased. One popular scam, called “pig butchering,” involves a scammer gaining your trust through social media and then convincing you to invest in a fake crypto fund.
How to avoid it:
Never respond to unsolicited texts or messages offering investments.
Protect your money by doing thorough research before committing to any crypto investments.
Check the legitimacy of any app or website by looking for security features and correct URLs.
Mortgage closing fraud happens when scammers impersonate real estate agents or loan officers to steal your down payment or closing costs. They often contact you through fake emails or texts during your home purchase process.
How to avoid it:
Always independently verify payment requests by contacting your real estate agent or loan officer directly.
Understand the closing process and how to avoid scams by discussing payment methods in advance.
Scammers sometimes call pretending to be debt collectors, trying to get you to pay for a debt that isn’t yours. They might use threats or intimidation to get you to act quickly.
How to avoid it:
Don’t share personal information until you can verify the legitimacy of the debt.
Ask the caller for their name and contact details, and follow up directly with the collection agency.
Look out for high-pressure tactics or refusal to provide written proof of the debt.
Press play for Cesar’s quick tips to keep your identity safe.
Phishing scams happen when fraudsters impersonate banks, merchants, or other trusted companies to steal your personal information. They’ll often ask you to click a link or download an attachment that can compromise your account details.
How to avoid it:
Be careful when clicking on links or opening attachments in unsolicited emails or texts.
How to spot scams: Check the sender’s email and ensure the website is legitimate.
If you're ever unsure, contact the company directly to confirm the message.
Ransomware is a type of malicious software that locks you out of your computer or phone until you pay a ransom. It often spreads when you click on an infected link or email attachment.
How to avoid it:
Avoid clicking on links or downloading attachments from unknown senders.
Keep your antivirus software up-to-date to scan for harmful programs.
Never use USB drives or external devices from sources you don’t trust.
Scammers often pretend to be from legitimate organizations, like government agencies or charities, and ask for money or personal information. These financial scams can be very convincing.
How to avoid it:
Don’t respond immediately to requests for money or personal information.
Call the organization directly using official contact details to verify the request.
Remember, reputable organizations won’t ask for money over the phone or email.
This scam involves fraudsters pretending to be a grandchild or relative in need of urgent money. They may contact you late at night, hoping to confuse you into sending cash.
How to avoid it:
Always contact the person directly to verify any requests for money.
Don’t feel pressured to act quickly—protect your money by taking your time to verify details.
Be extra cautious of late-night calls or unfamiliar numbers.
Sweetheart scams happen when someone builds a romantic relationship with you online and eventually asks for money. These scams usually take place over a long period and can leave you financially devastated.
How to avoid it:
Never send money to someone you haven’t met in person, even if you’ve been talking for a while.
How to spot scams: Watch out for people who profess love too quickly, especially if you met them online.
Be cautious if they have a sudden "emergency" and ask you for money.
In employment scams, fraudsters post fake job offers online and, after hiring you, ask you to deposit a fake paycheck and wire part of the money elsewhere.
How to avoid it:
Double-check job listings on the official website of the company.
Be cautious of job offers that don’t require an interview or contract.
Don’t accept offers asking you to send money or deposit checks.
By staying informed about common financial scams and following these simple tips, you can avoid falling victim to fraudsters:
Stay vigilant: Always be cautious of unsolicited offers or requests for your personal information.
Trust your instincts: If something feels off, take a moment to verify before acting.
Verify everything: Research any offer or request to make sure it’s legitimate before providing money or details.
By being proactive and educating yourself on how to avoid scams, you can protect your financial future. Don’t let scammers take advantage of you—visit First Alliance Credit Union and learn how to stay one step ahead and keep your finances safe!
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