Americans reported record fraud losses last year. The FTC says consumers filed 3 million fraud reports in 2025 and reported $15.9 billion in losses. The FBI's Internet Crime Complaint Center logged 1,008,597 complaints and $20.877 billion in reported losses over the same year.
Those are two separate counting systems, so don't add them together. Both point the same direction. The numbers keep climbing.
Here's the good news. Almost every scam leans on the same small set of tricks. Learn the ten red flags below, plus a bonus one, and you will spot most scams before they cost you a dollar. Then read the section on AI, because it makes every one of these tricks more convincing. Read this with your partner. Scammers love a household where one person handles the money alone and nobody double checks.
1. They Rush You
Scammers need you to act before you think. "Your account will be closed in one hour." "There's a warrant out for your arrest." "This deal ends tonight." The FTC lists pressure to act immediately as one of its four core signs of a scam.
Real institutions give you time. If a call or text makes your heart race and demands a decision right now, stop. The urgency is the tell.
2. They Want an Odd Payment Method
Gift cards. Wire transfers. Cryptocurrency. A payment app to someone you've never met. Cash handed to a courier. These methods share one trait. Once the money leaves, you can't pull it back.
The FTC is blunt about this: "Never pay someone who insists that you can only pay with cryptocurrency, a wire transfer service like Western Union or MoneyGram, a payment app, or a gift card." On gift cards it goes further: "No real business or government agency will ever tell you to buy a gift card to pay them."
The payment method tells you more than the story does. A real bill can go on a card. A scam needs money you can't claw back.
3. They Contacted You First
You didn't call them. They called you. Or they texted, emailed, or messaged you on social media. Most scams start with contact you never asked for.
The FTC reports text messages were the top reported contact method in 2025. Social media led every contact method in dollars lost, with over $2 billion in reported losses in fiscal year 2025. A message out of nowhere about a package, a refund, a prize, or a problem with your account deserves suspicion by default.
4. The Return Sounds Too Good to Be True
Guaranteed returns. No risk. Double your money in 90 days. A friend of a friend found a crypto platform paying 3 percent a week, and you can get in too.
This red flag drives the biggest reported losses. The FTC says consumers reported losing over $7.9 billion to investment scams in 2025, more than any other type of fraud. The FBI reports cryptocurrency investment fraud was the largest source of reported losses it tracked, at $7.2 billion.
Real investments carry risk and disclose their fees. Anyone who promises high returns with no downside is selling you a story.
5. They Ask for Codes, Passwords, or Account Numbers
A one time code sent to your phone is a key to your account. A scammer who already has your password needs the code to get in. So they call, pose as your bank's fraud team, and ask you to "verify" by reading it back to them.
Don't. Treat any caller who asks for a code as a thief. The FTC says honest organizations won't call, email, or text to ask for your Social Security, bank account, or credit card numbers.
The same rule covers remote access. If a caller wants you to install an app so they can "fix" your computer or "secure" your account, hang up. The FBI logged $2.13 billion in reported tech and customer support scam losses in 2025.
6. They Claim to Be Your Bank, the IRS, or the Police
Impersonation works because it borrows trust you already have. The caller says they're from your bank, Medicare, the IRS, Amazon, or the sheriff's office. Caller ID shows the right name. The email has the right logo.
Imposter scams were the most reported fraud of 2025. The FTC received over 1 million reports about them, with over $3.5 billion in reported losses. The FBI separately logged nearly $798 million in reported losses to government impersonation scams.
Hang up and call the agency or company yourself, using a number you find on your own. Remember the FTC's line from above. No real government agency will tell you to pay with a gift card.
7. They Tell You to Keep It Secret
"Don't tell the bank teller what this is for." "Don't mention this to your spouse. It will spoil the surprise." "This opportunity is invite only."
Secrecy is how a scammer cuts you off from the people who would spot the problem. This is where couples have a real advantage. If someone tells you not to talk to your partner about money, talk to your partner right away.
Practical Move
Agree on a household rule. Any request to move money, whether it arrives by phone, text, email, or social media, gets a 24 hour pause and a conversation with your partner before anyone pays. Write the rule down. Follow it even when the message looks real.
8. The Link or Sender Is a Little Off
Spoofed messages look close to real. The sender is "support@paypa1.com." The link reads "secure-yourbank-login.co." The text says your package is on hold and points to a site you've never used.
Check the full address, not the display name. On a phone, press and hold a link to preview it before you tap. Better yet, skip the link. Open your bank's app or type in the web address you already know.
Phone numbers get spoofed too. Caller ID showing your bank's name proves nothing.
9. They Pull on Your Emotions
Romance scammers build a relationship over weeks or months. Then a crisis hits. A medical bill. A customs fee. A plane ticket so they can finally meet you. Other scams use fear instead of affection: a grandchild in jail, a loved one in an accident.
The FBI logged $929 million in reported romance and confidence fraud losses in 2025. The FTC's rule is simple: "Never send money or gifts to a sweetheart you haven't met in person."
Strong emotion shuts down careful thinking. Scammers know this. When a message leaves you scared, flattered, or heartbroken, treat the feeling as a reason to slow down.
10. They Won't Let You Verify
Tell the caller you'll hang up and call back on the number from the company's website. Watch what happens. A scammer will say there's no time, the line will be busy, or you'll lose your spot. Some will ask you to stay on the phone while you drive to the bank.
A real company is fine with you hanging up and calling the official number. A real friend is fine with a video call. Anyone who fights verification has told you everything you need to know.
Hang up, look up the number yourself, and call back. This one habit beats most of these scams.
Bonus 11. They Claim to Be Famous, or Connected to Someone Famous
The message comes from a movie star, a country singer, a billionaire founder, or a famous investor. Or it comes from their "manager," their "assistant," or their "foundation." Sometimes the famous name sits on an ad instead, with a well known TV investor promoting a crypto platform or a miracle supplement.
The FTC warns scammers "are now posing as celebrities on social media" and "asking fans to send money for all kinds of supposed reasons." It also warns "Scammers are using fake celebrity and influencer testimonials and endorsements," and "The technology to make fake endorsement videos is improving all the time."
A famous person has no reason to message you for money, gift cards, or a fee to claim a prize. Search the celebrity's name along with the product or company name before you trust an endorsement. The FTC's advice fits here too: "Slow down. Before you send money, talk with someone you trust."
How AI Makes Every Fake Easier
Artificial intelligence lets a scammer fake an email, a document, or a voice in minutes. The FBI's 2025 report logged 22,364 complaints tied to AI, with $893 million in reported losses. Here's what you're up against.
Fake Emails and Texts
Sloppy spelling used to give scams away. Not anymore. The FBI warned in December 2024 that criminals use AI translation tools "to limit grammatical or spelling errors," and that they create messages "faster allowing them to reach a wider audience with believable content."
A polished email with your name, your bank's logo, and perfect grammar proves nothing. Judge the message by what it asks you to do, not by how it looks.
Fake Documents
The same FBI warning says criminals use AI to "generate fraudulent identification documents, such as fake driver's licenses or credentials (law enforcement, government, or banking)." A badge photo from a "federal agent" or a copy of a "bank officer's" ID is easy to make.
Treat any document sent to you as unverified. This includes an invoice, a letter on official letterhead, or a screenshot of a payment. Confirm it with the issuer, using contact details you find yourself.
Fake Voices and Video
This one hits hardest. The FTC warns a scammer needs only a short audio clip of your family member's voice, which they can pull from content posted online, plus a voice cloning program. The FBI says criminals use cloned audio "to impersonate a close relative in a crisis situation, asking for immediate financial assistance or demanding a ransom."
Video is next. The FBI says criminals create videos "for real time video chats with alleged company executives, law enforcement, or other authority figures." In May 2025 the FBI also warned of AI generated voice messages posing as senior US officials. Its own words: "AI-generated content has advanced to the point that it is often difficult to identify."
Practical Move
Pick a family code word tonight. The FBI recommends you "create a secret word or phrase with your family to verify their identity." If a call sounds like your son, your mother, or your boss and the caller wants money, ask for the word. Then hang up and call back on a number you already have. The FTC puts it plainly: "Don't trust the voice."
What to Do If You Think It's a Scam
Stop. Don't pay, don't click, and don't share any code.
Contact the real company. Use the number on your card, your statement, or the official website.
Call your bank right away if money already left. The FBI's advice is direct: "If you discover a fraudulent transfer, time is of the essence. Immediately, contact your financial institution and request a recall of the funds."
Report it. File with the FTC at ReportFraud.ftc.gov and with the FBI at ic3.gov. The FBI asks victims to file "regardless of the amount lost."
Lock down your accounts. Change passwords and turn on two step sign in for any account you think was exposed.
Tell the people you love. Start with your partner. Then check on older parents and relatives. The FBI reports people 60 and over reported losing $7.7 billion to internet crime in 2025.
Build a Household That's Hard to Scam
Scammers win when one person makes a fast decision alone. They lose when a household has clear rules and talks about money often.
If you already hold a weekly money date, add one standing question. Did anything strange show up this week? A weird text. A call from "the bank." A pitch from a friend about a new investment.
The conversation takes two minutes. It can save your savings. If money conversations in your house are hard to start, working with a couples financial coach can help you build the habit together.
Common Questions About Spotting Scams
What is the most common sign of a scam?
Pressure to act now paired with a demand for an unusual payment, such as a gift card, wire transfer, or cryptocurrency. The FTC lists pressure to act immediately and being told to pay in a specific way among its four core signs of a scam.
Should I ever read a one time code to someone who calls me?
No. The code exists to prove you are the one signing in. Treat any caller who asks for it as a scammer, hang up, and call the number on the back of your card.
Can I get my money back after paying a scammer?
Sometimes, if you move fast. Call your bank or payment provider right away and ask them to stop or recall the payment. Then report the scam to the FTC and to the FBI's Internet Crime Complaint Center. Gift cards and cryptocurrency are much harder to recover.
Can scammers really clone someone's voice?
Yes. The FTC warns a scammer needs only a short audio clip of a family member's voice, often pulled from content posted online, and a voice cloning program. Agree on a family code word, and if a call asks for money, hang up and call the person back on a number you know is theirs.
Where do I report a scam?
Report it to the FTC at ReportFraud.ftc.gov and to the FBI at ic3.gov. Also tell your bank and the platform where the scammer reached you.
Sources: FTC, press release on 2025 fraud data and testimony to the Joint Economic Committee, March 25, 2026. FTC consumer advice: How To Avoid a Scam, Gift Card Scams and Romance Scams. FTC consumer alerts: Scammers use AI to enhance their family emergency schemes, Did a celebrity really endorse THAT? and Scammers impersonate celebrities on social media. FBI, 2025 IC3 Internet Crime Report and public service announcements on criminal use of generative AI (December 2024) and impersonation of senior US officials (May 2025).
