How to Identify a Scam and Stay Safe Online

Online scams can happen to anyone. But 18- to 59-year-olds are 34% more likely than older adults to report losing money to a scam—like investment scams or fake money scams.

Getting scammed can hurt your accounts and your credit score. It can even affect your mental health.

That’s why it’s important to learn how to identify a scam before it happens. Knowing the signs can help you outsmart scams and keep your money safe.

Let’s review how to spot a scam, ways to avoid being scammed online, and the steps you can take to report scammers.

It’s not always easy to recognize scams online. There are tons of scams out there. And scammers continue to get more creative.

But there are general signs and common tactics scammers use to try to get your money or information. Think unusual requests for personal or account info, pressure to act quickly, or offers that sound too good to be true—like free money.

Be aware of these common tactics and learn how to identify a scam.

It sounds too good to be true

Online scammers often make promises or offers that sound too good to be true. These offers include free money in the form of cash, gift cards, expensive gifts, or fake giveaways.

The catch? Scammers want something in return. They may ask for money, personal info like your birthday or SSN, or account details like your password. And once you give them what they want, the scammer ghosts you.

If someone contacts you via social media, email, or phone promising an amazing deal, use caution to avoid being scammed online. If it sounds too good to be true, it probably is.

You don’t know who’s contacting you

Just because someone knows how to reach you doesn’t mean you can trust them. If you get a call, email, or text from someone you don’t know, it could be a scam.

Scammers can get your contact information from many sources, including online contests, surveys, social media, and even the mail you throw out. Some might pull your information from public government records (like Census data or property records). 

Online scammers may pretend to work for an organization you know, such as the IRS, USPS, or FTC. Others might say they’re from a debt collection agency or attorney’s office. Their goal is to scare you into giving them money or sharing personal details they could use to hack you or steal your identity.

You can avoid scams and help keep your data safe by confirming the person contacting you is who they say they are. Check that the number or email address matches the company-provided info. If you’re on the phone, hang up and look up the number. 

If you suspect a scam, trust your instinct and don’t respond.  

It’s an urgent request

Scammers often pressure you to act quickly or use scare tactics to trick you into providing personal information or money. They want you to respond before you have time to question them or confirm what they say is real.

Common examples of this type of scam include:

• Limited-time offer: The scammer says you must send money or provide personal info to receive a prize or reward. They’ll say things like, “If you don’t act now, you could lose your opportunity.”
• Account hack: The scammer pretends to be a customer support rep, claiming someone hacked your account or stole your data. They’ll say you must provide personal or financial information verifying your account to resolve the problem.
• Owed payment: Again pretending to be someone official, the scammer says you owe money or are past due on an account. They’ll try to convince you that you might face legal action if you don’t transfer money to a specified account immediately.
• Family emergency: The scammer says there’s an emergency in the family, and you need to send money right away. They’ll claim the situation will get worse if you don’t.

These “urgent” requests are usually full of empty threats or promises. They typically work because people don’t have time to stop and think about what’s happening. Don’t fall for their pressure tactics—if it feels weird, hang up. You can call the company they claim to be using the official phone number on their website or your last bill.  

You’re asked to share personal information

Scammers will also try to trick you into sharing personal info so they can gain access to your money.

This includes your Social Security number, bank account information, usernames and passwords, PINs, and birthday, to name a few. It might also include information used in online security questions—like your mother’s maiden name or the name of your first pet.

Once a scammer has this information, they can use it to:

• Open bank accounts or apply for credit cards or loans under your name.
• Access your accounts and spend your money. 
• Pretend to be you when contacting your cell phone company, bank, or other companies to gather more information about you.

All this could cost you money or hurt your credit score. Remember, real companies won’t ask for sensitive information through email or unexpected calls. Always be careful about where and how you share your details to avoid being scammed online.

It requires an unusual payment

Scammers are creative with how they go after your money.

If someone asks you to pay in a way that seems odd or unfamiliar, that’s usually a red flag. Scammers often want payments that are hard to trace, like wire transfers or even gift cards. They might even walk you through how to send them the payment step by step. 

Here’s how to spot a scam like this:

• They ask you to send money to a strange or unfamiliar account.
• They tell you to purchase and send a gift card (or the gift card number and PIN).
• They request that you make a payment through an unfamiliar app.

Think twice before responding to payment requests that don’t feel right, because they could be scams. Only send payments to people you know and trust.

Knowing how to identify a scam like these can help keep you safe online. But there are still other ways to avoid scams and protect your accounts.

Here are some more tips for how to avoid being scammed online:

• Don’t open suspicious emails or texts. If you don’t recognize the phone number or email address, delete it or report it as “spam” without opening it. Double check the email address matches the website URL of the site ([email protected]). Scammers like to use slight changes to make fake accounts seem real ([email protected]). 
• Avoid clicking on links and attachments. If you did open the suspicious email or text message, don’t reply or open any links or attachments.
• Confirm who’s contacting you. If you don’t know the person contacting you, double check their contact details with their company to make sure they match. If the caller ID seems right but a phone call feels weird, hang up. Google the company’s official phone number and call them to confirm they’re trying to reach you.
• Check for misspellings. If an email or text message has strange grammar or misspellings, it could be a scam. Report it and delete the message.
• Don’t respond to urgent requests. If someone is pressuring you to act quickly, stop and double-check their claims are real before sending money or personally identifying information.
• Be careful about sharing personal or financial information. Whenever someone asks you to share personal info, confirm the person asking is who they say they are. Only provide information to those you trust.
• Confirm any transactions. If someone contacts you about “money you owe” or an “account hack,” check your account to make sure it’s real before taking action.

You can also keep your money safe by using the security features available to you in your banking apps. For example, on Cash App you can avoid potential scams by following these tips:  

• Secure your account with strong passwords. Remembering your password may not be easy, but it’s better to have a complex password than something easy to figure out. Use an online password manager to keep your passwords secure. Or write them down somewhere safe.
• Pay attention to account alerts. Cash App can notify you by text or email after every transaction so you can confirm it. You’ll also get real-time alerts when a new device logs into your Cash App account or if someone makes changes to things like your phone number, email address, PIN, or Security Lock settings. These alerts can help prevent fraud and keep your data safe.
• Turn on Security Lock. Turn on the Security Lock feature in Cash App to require a Face ID or a PIN to unlock the app and move money.

Protecting yourself against online scammers begins with knowing how to identify a scam. Their tactics stand out when you know what the signs are.

Remember to watch out for:

• Offers that sound too good to be true
• People, phone numbers, and email addresses you don't know or recognize
• Urgent requests
• Being asked to share personal info
• Requests for unusual payments

Stay skeptical, and don’t share personal information unless you can verify the request is legit. If a conversation feels weird, stop replying or hang up. 

At Cash App, we take extra steps to safeguard your info with security features like encryption, fraud detection technology, real-time transaction alerts, and Security Lock settings that require your passcode, Touch ID, or Face ID for every transaction. 

Scammers’ tactics are getting more sophisticated, and it’s not always possible to avoid them. If you do get scammed, immediately report what happened to the proper authorities. And check out our tips for what to do if you get scammed for more info on next steps.