2. Fraud & Scams

How to recognize deception, avoid common traps, and protect your personal information and money.

Fraud and scams are attempts to trick people out of their money, identity, or personal information.
They can happen online, on the phone, through email, or even in person.

Understanding the warning signs helps students stay safe in a world where scams are increasingly common and sophisticated.

What Fraud and Scams Are

Fraud and scams involve:

• deception

• pressure or urgency

• false promises

• requests for sensitive information

• unearned trust

The goal of the scammer is simple: to gain access to money or personal data.

Anyone can be targeted — not just beginners.

Why People Fall for Scams

Scammers take advantage of:

• emotions (fear, excitement, urgency)

• trust in authority

• confusion or lack of information

• technology that looks legitimate

• social media influence

• pressure to act quickly

Understanding these tactics helps people respond calmly instead of reacting impulsively.

Common Types of Scams

1. Phishing (Email Scams)

Fake emails pretending to be from:

• banks

• government agencies

• delivery companies

• online stores

• schools

• tech companies

Red flags:

• poor grammar

• unusual requests

• links that look similar but slightly off

• “verify your account” or “your account is locked” messages

Never click suspicious links or give out personal information.

2. Text Message Scams (“Smishing”)

Examples include:

• fake delivery updates

• “urgent” bank messages

• prize winnings

• refund notifications

• messages with unfamiliar links

If you did not request the information, ignore or delete it.

3. Phone Scams

Scammers pretend to be:

• IRS agents

• police officers

• bank representatives

• tech support

• utility companies

They often use strong emotions: fear, urgency, or threats.

Legitimate organizations do not demand immediate payment or sensitive information by phone.

4. Online Marketplace Scams

Scams involving:

• fake buyers

• fake sellers

• payment reversals

• counterfeit goods

• people refusing to meet in person

Always meet in safe locations and never send money to strangers online.

5. Romance or Friendship Scams

Someone builds trust online and eventually asks for:

• money

• gift cards

• financial help

• personal information

Healthy relationships do not include financial pressure.

6. Job & Internship Scams

Common signs:

• being asked to pay for training

• offers that sound too good to be true

• poorly written job descriptions

• requests for bank information early

• remote jobs with vague responsibilities

Legitimate jobs pay you — you don’t pay them.

7. Investment Scams

These overlap with your Investing Red Flags module.

Warning signs:

• guaranteed returns

• “secret strategies”

• crypto token promotions

• influencer hype

• urgent opportunities

• no clear explanation

• high or hidden fees

If it sounds too good to be true, it is.

8. Identity Theft

Identity theft happens when someone uses your:

• name

• social security number

• credit card number

• bank information

• online accounts

to open accounts or make purchases without permission.

It can cause long-term financial and credit damage.

How to Protect Yourself

1. Protect Personal Information

Never share:

• Social Security number

• banking information

• passwords

• PIN numbers

• log-in codes

• school or financial documents

Unless you initiated the contact and trust the source.

2. Use Strong, Unique Passwords

Best practices:

• use long passwords

• mix letters, numbers, symbols

• avoid using the same password everywhere

• use two-factor authentication when available

Password strength is one of the simplest ways to reduce risk.

3. Slow Down When Something Seems Urgent

Scammers rely on speed and panic.

Pause and ask:

• “Did I expect this message?”

• “Is this a normal request?”

• “Can I verify this another way?”

Taking 10 seconds to think can prevent a major problem.

4. Verify Before Responding

If someone claims to be from a bank or company:

• hang up

• call the official number on the website

• ask to verify the request

Real organizations will not be offended by verification.

5. Avoid Suspicious Links and Attachments

If you don’t recognize the sender, do not open:

• links

• attachments

• downloads

They can install malware or steal login information.

6. Monitor Accounts Regularly

Check:

• bank statements

• credit card transactions

• credit reports (annually, free)

Catching fraud early makes it easier to resolve.

7. Recognize “Payment Red Flags”

Scammers often ask for:

• gift cards

• cryptocurrency

• wire transfers

• payment apps to strangers

Legitimate businesses do not use these methods for urgent payments.

What To Do If You Suspect a Scam

• stop all communication

• do not send money

• block the number or email

• change passwords

• contact your bank if financial information was shared

• monitor accounts for unusual activity

• report to a trusted adult, teacher, or authority figure

• file a report with relevant agencies (FTC, local police, bank fraud department)

Quick action reduces damage.

Why Fraud Awareness Matters

Learning about fraud and scams helps students:

• protect their identity

• avoid financial loss

• use technology safely

• recognize manipulative tactics

• make thoughtful decisions

• build lifelong digital awareness

The core message:

Scams work when people act quickly and emotionally.
They fail when people slow down, verify, and think critically.