40 Common Money Scams and How To Avoid Them
American consumers lost more than $12 billion to fraud and scams in 2025.
Financial scams are everywhere these days, and unfortunately, they’re not always easy to identify. On top of that, some experts report that phishing and online scams are getting more sophisticated, thanks to technological advancements such as AI.
Although authorities work hard to prevent scams, scammers work just as hard to evade the law. It’s up to the everyday consumer to identify a potential scam and save themselves from a financial loss.
As you look to protect your finances in 2026, here is a primer of the most common money scams.
Also See: 7 Ways You're Accidentally Committing Tax Fraud
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Email Scams
Phishing — a type of attack in which a scammer contacts you pretending to be someone else — can occur over social media, text or phone calls, but email is one of the most common platforms. An estimated 1.2% of all emails sent globally are from impersonation accounts. Here are a few popular email scams to help you know what to look for.
‘Your invoice is due’
False invoice emails usually contain an unclear description of services. They may ask you to send money to a PayPal, Cash App or Zelle account.
Stay safe: Call the company you’re expecting an invoice from and ask if it emailed you.
‘Your email account will be upgraded’
If you receive an email claiming that your Gmail or Outlook account will be deactivated if you don’t upgrade, it’s most likely phishing.
Stay safe: Make sure that email really came from your email provider by comparing the domains.
‘I’m a Nigerian prince’
The “Nigerian prince” scam is one of the oldest since the internet was invented. A wealthy individual claims they can’t access their money for some reason and asks you to pay them a small amount, which they will return with generous interest.
Stay safe: Never send money to someone you don’t know. Click “report phishing” as soon as you receive this type of email.
‘Your PayPal account will be closed’
If you use PayPal, you may receive an email claiming that your account has been inactive and needs to be upgraded to prevent closure. This is a tricky one, because PayPal does send messages to account owners who have been inactive — it will ask you to log in to keep your account but will not ask you to pay a fee.
Stay safe: Compare the message to other emails you’ve received from PayPal. When in doubt, contact PayPal’s customer service to verify the email.
‘Someone signed into your account’
If you get an email claiming that your banking, social media or email account has been hacked, it could be a phishing scheme. The scammer is trying to get your login information.
Stay safe: Verify that the email is actually from that company before you click any links.
‘Please open this important attachment’
Scammers use attachments to download malware to your device, which gives them access to your financial information and other data.
Stay safe: Never open an attachment unless you are 100% sure it’s legitimate.
‘Your payment is overdue’
Did you really miss a payment, or is that a scammer after your bank account information?
Stay safe: Check your accounts to see if you actually missed a payment. Call the institution to verify.
Emergency Scams
Emergency scams play on your worst fears, asking for money to solve an urgent problem. These scams might occur through email or text but are commonly phone calls. If you get a call from or about a loved one claiming there has been an emergency, try not to panic. Call the police right away if you encounter any of these scams.
‘It’s me, please help’
Scammers may call, text or message you claiming to be a family member in trouble. They can even impersonate your loved one’s voice.
Stay safe: Call the person’s real phone number. If they don’t pick up, call someone else who knows the person and ask what’s going on.
‘Your family member is in the hospital’
If you receive a call asking to pay for a family member in the hospital, don’t send money. Hospitals never ask for direct payment over the phone.
Stay safe: Call the family member. Call or visit the hospital the scammer claims to represent.
‘Your family member is in jail’
Similarly, the police won’t contact you for direct payment when a loved one is arrested.
Stay safe: Call the family member. Call your local police department.
‘I’m stuck in another country’
If a loved one seemingly messages you claiming they are stuck in another country and need payment, they may be a scammer.
Stay safe: Contact the person and anyone else who knows them to see if they’re traveling.
Tech Support Scams
The FTC warns that tech support scammers can force you to buy unnecessary software, download malware to your device, gain your credit card information or steal your personal data. To avoid these scams, consider visiting a tech support professional in person. Research reputable companies and verify a professional’s credentials before you trust anyone with your device.
‘Call tech support now’
Received a message that you need to call tech support? It’s probably a scam. Real tech support professionals will not reach out to you with urgent requests.
Stay safe: Call your company or provider’s real tech support line, not the number in the message.
‘Your computer is at risk’
Pop-ups claiming that your computer is at risk could be a sign of malware. They may contain links to bogus subscriptions or payment scams.
Stay safe: Don’t click the pop-up. Research the alleged issue to learn more.
‘Virus detected’
Again, pop-ups should never be trusted unless they come from a legitimate program you use every day. Don’t click that link.
Stay safe: Call or visit a real tech support provider.
‘Your account is vulnerable’
Social media companies, banks and email providers all have their own antivirus software. You don’t need a subscription to keep your account safe.
Stay safe: Do not trust these messages unless they come from a legitimate provider, like MacAfee.
‘Download our antivirus software’
Disguising malware as antivirus software is one of the oldest tricks in the book.
Stay safe: If you want to use antivirus software, do your research and find a safe, well-reviewed provider.
Home Repair Scams
With homeownership comes a whole new risk: home improvement scams. These take advantage of homeowners by providing low-quality or even harmful work for a high upfront cost.
Like with tech support companies, it’s crucial to do your homework and find a credentialed home repair professional you can trust. Here are a few examples of common home improvement scams.
‘Get a free home inspection’
Many contractors start with a free inspection, but they won’t come to you. Companies advertising a “free” home inspection out of the blue might be out to steal your belongings or force you into paying under false pretenses.
Stay safe: Don’t trust contractors who offer a free inspection unless you contact them first.
‘We noticed this problem with your house’
When someone knocks on your door claiming they can fix your roof, siding or windows, don’t trust them.
Stay safe: Ask for the person’s credentials. Get a second opinion on the “issue” they point out.
‘No contract needed’
Every legitimate contractor will use a contract. “No contract needed” means they plan on overcharging or underdelivering.
Stay safe: Only work with teams that provide a construction contract.
Street Scams
Financial fraud has been around since long before the internet. Although online scams and cyber-crimes are more prevalent today, old-school street scams haven’t gone anywhere.These cons are common in tourist areas, especially overseas. They often target travelers who are unfamiliar with the area or customs. Whether you’re abroad or in your hometown, keep an eye out for these common street scams.
‘This is for you’
In this scam, someone hands you a small trinket — such as a a flower or handmade bracelet — pretending it’s free, then demands payment once you take it.
Stay safe: Don’t accept any gifts from strangers. If you do and they demand payment, hand the item back or put it down and walk away.
‘No change’
If you pay a street vendor with a large bill, they may claim they have no change and refuse to give it back.
Stay safe: Stick with trusted vendors and pay in exact change whenever possible.
‘I can help with that’
A kind stranger might offer to watch your bike while you’re in the store or show you around the city. Then they’ll demand payment — or steal your belongings.
Stay safe: Don’t accept unsolicited help.
‘This bill is counterfeit’
If a vendor tells you your bill is counterfeit, they could just be after more money.
Stay safe: Ask for the bill back so you can pay by another method. If they refuse, walk away.
Social Media Scams
The FTC has referred to social media as the “golden goose for scammers.” People scrolling social media are already used to flashy messaging and exciting posts — it’s no surprise they’re vulnerable to scams. Keep an eye out for these common scams whenever you’re online.
‘We love your content!’
Someone sends you a flattering message and claims you would be perfect for their new opportunity — they may be looking for a payment.
Stay safe: Never send money or sensitive information to a stranger online.
‘Your account has been hacked’
When you receive a message claiming your social media account has been hacked, you might be dealing with a scammer.
Stay safe: Log into your account and check for suspicious activity. Never pay to prevent hackers.
‘Take this quiz’
Online quizzes can be fun, but they’re also an easy way to steal your information — like answers to your security questions.
Stay safe: Don’t take any quizzes you see on social media.
‘Join this contest’
Enter to win? More like enter to lose your money.
Stay safe: Never pay to enter a contest, whether it’s advertised on social media or through email.
‘Hey handsome/beautiful’
Romance scammers, or “catfishers,” will try to take your money through a false relationship.
Stay safe: Use other platforms to make sure the person you’re talking to is who they say they are.
Employment Scams
Looking for a job? If you’re not careful, you could end up falling victim to a scam. Employment scams target vulnerable people looking for work. These scams might involve an advance fee or an illegitimate business offer. Look out for these common ploys.
‘I have an incredible opportunity for you’
When someone approaches you with a seemingly incredible job offer, you should be cautious. If it sounds too good to be true, it probably is.
Stay safe: Ask them about the company or organization and do your research.
‘We’ll help you get hired’
While career advice can be helpful, watch out for scams that involve paying for “expert interview tips” or “early application opportunities.”
Stay safe: Stick with certified, well-reviewed career counseling services.
‘Subscribe for more job listings’
Some job search sites are legitimate, while others require high fees for unreliable listings.
Stay safe: Use highly trusted job search platforms, like Indeed and LinkedIn.
‘We need to check your credit’
A prospective employer might look into your credit history, but they won’t perform a hard check on your credit.
Stay safe: You should only provide your Social Security number upon your hiring, after a legitimate in-person job interview.
Debt Repayment Scams
Lower-income households are especially vulnerable to money scams — and that includes people in debt. If you’re working on repaying your loans, be careful to avoid scams that promise a better deal or threaten you with fines. Check out these examples.
‘Your account is (suddenly) past due’
Received a sudden, unexpected phone call that your account is extremely overdue? Don’t panic. It’s probably a scam.
Stay safe: Call your lender or check your account balance online. Never pay a caller directly.
‘Refinance your loan with us’
While loan refinancing is legitimate, take caution with unrealistic or pushy offers.
Stay safe: Only refinance your loan with your current lender or another established institution.
‘Your relative left you a debt’
Like the mysterious inheritance, that mysterious debt probably isn’t real.
Stay safe: Never pay a strange caller or messenger.
‘You must pay us right now’
Is your lender suddenly pressing you to pay your full balance immediately? Check again — that’s not your lender.
Stay safe: Stick with your repayment plan and report any impersonators.
Government Impersonation Scams
Like emergency scammers, government impersonators play on your fears to get a quick payment. You might be inclined to believe someone who claims to be a government official, especially if they’re using intimidation tactics. However, remember to take a breath and think logically. Real government officials aren’t looking for handouts.
These common government impersonation scams are designed to scare you out of your money.
‘This is the IRS’
When the “IRS” calls you demanding an urgent payment, hang up. If the IRS needs to contact you, it’ll send several notices in the mail first.
Stay safe: Ignore or report these calls.
‘You’ve been selected for jury duty’
Jury duty is real — paying to hold your place or signing up with your bank account information is not.
Stay safe: Real juror summons come in the mail or through personal delivery. Ignore any summons you receive through a text, email or phone call.
‘There is a problem with your Social Security account’
Social Security scams commonly target retired Americans. If you’ve received a notification claiming there is something wrong with your Social Security account, it may be a scam.
Stay safe: Never provide your Social Security information online, unless it’s through ssa.gov.
‘Your Medicare coverage has been suspended’
Your health insurance has suddenly been suspended, and you must pay now! Don’t panic — this is a scam.
Stay safe: Call Medicare directly at 1-800-MEDICARE.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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