12 Common Phone and Internet Scams (and How to Avoid Them)

Scammers are becoming more sophisticated each year, and their schemes are costing victims billions. According to recent data, the average victim loses around $450, with the total annual cost of scams in the U.S. surpassing $10 billion.

Staying informed is your first line of defense. Here’s a guide to some of the most common phone and internet scams—and how to spot them before it’s too late.

1. Remote Tech Support Scams

How it works: Scammers pose as technicians from reputable software companies. They call or email, claiming your computer is infected and offer to fix it remotely. After fake diagnostics, they install malware and demand payment—often via gift cards, wire transfers, or payment apps.

Red flags:

• Unsolicited calls claiming your computer is at risk

• Requests for remote access

• Demands for unusual payment methods

Remember: Legitimate tech companies will never contact you this way.

2. Counterfeit Goods & Services

Fraudsters mimic popular brands by copying logos and using URLs that closely resemble real websites. They offer products at unbeatable prices—but never deliver.

Tip: Double-check the website address and look for small, suspicious differences. If it seems too good to be true, it probably is.

3. Check-Cashing Scams

You’ll receive a heartfelt email from someone claiming they need help cashing a check—and offering a reward. After you deposit the check and hand over the cash, the check bounces, and you’re left covering the loss.

Rule: Never cash checks for strangers, no matter how convincing their story.

4. Fake Pet Adoption Scams

Fraudsters create fake pet adoption websites offering rare breeds at low prices. They ask for “insurance” and shipping fees—usually via wire transfer. The pet never arrives because it doesn’t exist.

Solution: Adopt locally from verified shelters or pet stores. Never wire money for unseen animals.

5. Grant Scams

Posing as government officials, scammers promise “free grants” in exchange for a small processing fee. They often target people in financial distress and use the opportunity to steal personal information.

Note: No legitimate government agency will ask for a fee to release grant funds.

6. Fake Debt Collection Scams

Scammers impersonate collection agencies, pressuring victims into immediate payment. They may threaten lawsuits, wage garnishment, or liens—and sometimes use real details about your credit history.

Protect yourself:

• Contact the original creditor to verify the debt.

• Don’t engage with suspicious collectors.

• Report the fraud to authorities.

7. Rental Property Scams

Scammers use appealing property photos and too-good-to-be-true prices to lure renters. Once you’re interested, they ask for a deposit via wire transfer. The rental doesn’t exist.

Rule of thumb: Never send money for rentals you haven’t seen in person.

8. Fake Loan Offers

Scammers promise easy, low-interest loans. To proceed, you must pay an upfront “security” fee and provide your banking details. The loan never arrives, and your information may be misused.

Advice: Legitimate lenders never require payment before loan approval or disbursement.

9. Timeshare Resale Scams

Victims are told they can sell their timeshare at a profit—but must first pay fees (broker, legal, appraisal). These contracts may be fake or legally binding with unfavorable terms.

Action: Consult a qualified attorney before signing any resale agreements.

10. Work-from-Home Scams

Scammers advertise remote jobs (especially in shipping or customer service) with professional-looking sites and application processes. After you’re “hired,” you’re sent packages and fake checks. When the check bounces, you’re on the hook for the money.

Red flags:

• Overpayments

• Requests to forward money

• Lack of verifiable company info

11. Social Security Impersonation Scams

You’ll get a call claiming your Social Security number has been compromised and deactivated. The caller will ask for your full number and may threaten arrest if you don’t comply.

Reminder: The SSA or IRS will never demand personal information over the phone or issue threats.

12. Lottery or Prize Scams

You’re contacted about winning a lottery or sweepstake—often one you never entered. Before claiming your “winnings,” you’re asked to pay a fee via wire transfer.

Bottom line: If someone asks for money before giving you money, it’s almost certainly a scam.

How to Stay Safe:

• Avoid giving out personal info over the phone, email, or text unless you initiated the contact.

• Be suspicious of any payment requests via wire transfer, gift cards, or prepaid debit cards.

• Research unfamiliar companies and offers before taking action.

Final Word

Scammers are more persuasive than ever, but knowledge is your greatest defense. Stay vigilant, educate others, and report suspicious activity. Being cautious today can save you (and your loved ones) from serious financial and emotional harm tomorrow.