Types of Financial Fraud
Understanding these common scams is the first step in protecting yourself
Ponzi & Pyramid Schemes
Fraudsters promise high returns with little or no risk, using money from new investors to pay earlier ones until the scheme collapses.
Warning Signs:
- Guaranteed high returns with no risk
- Complex or secretive strategies
- Pressure to recruit others
- Difficulty withdrawing funds
Online Dating Fraud
Scammers create fake profiles on dating sites, develop relationships, then fabricate emergencies to request money from victims.
Warning Signs:
- Quick declarations of love
- Refusal to meet in person/video chat
- Sudden emergencies requiring money
- Requests for gift cards or wire transfers
Email & Text Scams
Fraudulent messages impersonate legitimate organizations to trick victims into revealing sensitive information or downloading malware.
Warning Signs:
- Urgent requests to verify accounts
- Suspicious sender email addresses
- Poor grammar and spelling
- Requests for login credentials
Fake Computer Warnings
Scammers claim to be from well-known tech companies, warning about fake computer problems to gain remote access or payment.
Warning Signs:
- Unsolicited calls about computer issues
- Pop-up warnings with phone numbers
- Requests for remote access
- Demands for payment in gift cards
Fake Crypto Investments
Scammers promote fake cryptocurrency investments, manipulate markets, or create fraudulent exchanges to steal digital assets.
Warning Signs:
- Guaranteed high returns
- Celebrity endorsements (often fake)
- Pressure to invest quickly
- Difficulty withdrawing funds
Personal Information Theft
Thieves steal personal information to open accounts, make purchases, or commit other fraud in the victim's name.
Warning Signs:
- Unauthorized accounts or charges
- Denied credit unexpectedly
- Missing mail or statements
- IRS notices about duplicate returns