Key Takeaways
Some common signs of an online scam include urgent pressure to act, unexpected messages, and offers that seem too good to be true.
Avoid scams by never sharing your passwords or one-time verification codes with anyone who contacts you.
Real agencies and legitimate companies will not demand gift cards, cryptocurrency, or upfront fees.
Report a scam quickly to limit the damage to your finances and help protect other people.
As con artists keep getting bolder, knowing how to protect yourself from online scammers is one of the smartest money habits you can build. Think of these tricksters as digital pickpockets who work through your inbox, texts, and favorite apps rather than in the street. This guide walks you through the warning signs of online scams, the most common schemes, and the simple steps you can take to keep your money safe.
1. Recognize the warning signs of a scam
Most cons tend to follow a familiar script, and the same signs show up across online scams, including phishing emails and texts. Watch for these red flags:
Urgent pressure to act now, before you have time to think or verify.
Requests for personal info, passwords, or one-time codes.
Demands for payment by gift card, wire transfer, or cryptocurrency.
Messages from senders you never contacted first.
Offers that seem too good to be true.
2. Watch out for fake government payment offers
Scammers love to pose as government agencies that supposedly owe you money. They often promise faster tax refunds, unemployment benefits, or grants for a small upfront fee. But no outside service can speed up a real government payment.
You’ll only ever receive a government payment from the agency itself, such as the IRS or the Department of Labor. A request for an upfront deposit or fee to release your benefits is a clear sign of a government impersonation scam. Unemployment benefits are handled at the state level through your state's Department of Labor.
Pro tip: A real agency will never ask you to pay a fee to receive money it already owes you.
3. Be careful with donations and lookalike sites
Some sites imitate political parties, advocacy groups, and charities to pocket your money. These charity scams often spike around elections and natural disasters. A little verification goes a long way before you donate:
Confirm that a real candidate or organization endorses the campaign.
Be suspicious of requests to pay by cryptocurrency or to another bank account.
Donate directly through the organization's own website or a trusted platform.
You can also research a nonprofit through Charity Navigator before you donate.
4. Trust your gut about shady apps
Your instincts make a great scam detector, especially with apps. If an app feels off, do not install it. A few habits keep your devices safer:
Only download apps from the App Store or Google Play.
Check the developer name, the other apps they've made, and the reviews.
Keep your phone and computer updated with the latest security fixes.
Chime® will never ask you to download remote-access apps, such as remote-entry tools, to help with an account issue.
5. Keep your passwords to yourself
Your passwords are the keys to your financial life, so guard them closely. Never give your personal info, username, or password in response to a message you didn't start. A legitimate financial institution, including Chime, will never ask for your username and password.
One-time codes and two-factor authentication codes deserve the same protection. Never share a code with anyone by phone, text, social media, or email. If a code arrives that you didn't request, report it right away.
Knowing how to create a strong password is half the battle. Here’s how to come up with a strong one:
Use a long mix of uppercase and lowercase letters, numbers, and symbols.
Avoid easily guessable personal info like birthdays or a pet's name.
Use a unique password for each account.
Consider using a password manager to store them safely.
6. Beware of tax preparer scams
A trustworthy tax professional makes filing easier, but not every preparer earns that trust. You often share sensitive documents and information during tax season, so make sure you vet anyone you’re considering hiring. Keep these guardrails in mind:
Never authorize a preparer to receive your tax refund into their own account.
Check referrals, reviews, and complaints on trustworthy platforms like the Better Business Bureau or Trustpilot.
Ask for a letter of engagement that spells out the scope and terms of the work.
7. Know the difference between identity theft and fraud
People often blur these terms, but the identity theft vs. fraud distinction matters. Identity theft is when a scammer steals personal information, such as your Social Security number, to open accounts, make purchases, or claim a refund. Financial fraud happens when someone illegally takes money or assets from you.
You have tools to fight back. You can request an IP PIN from the IRS to stop someone from filing a return with your Social Security number. If your identity is stolen, report it at IdentityTheft.gov to start a recovery plan.
What to do if you think you've been scammed
Discovering a scam is stressful, but quick action can help limit the damage. Work through these steps in order:
Change the passwords on any affected accounts.
Contact your financial institution about the suspicious activity.
Report identity theft at IdentityTheft.gov to get a recovery plan.
Report the scam to the FTC so other people can be warned.
Staying vigilant pays off
Scammers keep changing their tactics, but your good habits keep working. Slow down, verify before you click, and trust your gut when something feels off. Staying alert to newer scams helps you protect yourself from online scammers and keep your peace of mind.