Tips to avoid common money scams

People often associate the phrase "phishing scams" with emails that seem legit at first, but upon closer examination, are a little suspicious. Maybe the tone feels unnecessarily urgent or the email contains a link to a fake website. The sender is usually impersonating a business or person and is trying to trick you into revealing personal information.

While these traditional phishing scams are still common, they've gotten much easier to avoid with spam filters. For that reason, many scammers have moved on to different types of money scams that involve calling and texting, sometimes from "spoofed" phone numbers that seem familiar.

Read on to learn more about some of the most common types of bank scams, how to recognize the warning signs and how you can avoid becoming a victim.

Phishing scams

In addition to emails, phishing scams present themselves in the form of smishing (SMS phishing) and vishing (voice phishing).

If you feel like you've gotten more and more spam calls over the past few years, you're not alone. Americans receive about 4 billion robocalls each month, according to a 2022 FCC report (Opens in new window).^{See note1} I believe this number. I feel like my phone is a big contributor to this number as it is constantly ringing.

These scams often target seniors, immigrants, people with disabilities and student loan borrowers.

How to avoid smishing, vishing and phishing scams

When it comes to avoiding phishing scams, the key is learning how to recognize them in the first place. Here's what to watch for.

• Ignore text messages from numbers you don't recognize, especially if they contain links or request funds or other personal information.
• Delete or ignore social media messages from people you don't know.
• Avoid giving personal information or financial account information over the phone, especially to someone who calls you unexpectedly. The IRS and Social Security Administration have better ways of reaching you if they actually need to.
• Learn more about how to recognize and avoid these types of scams from the Federal Trade Commission's (FTC) consumer advice on phone scams.^{See note1}
• Read more from the FTC on how to recognize and report spam text messages.^{See note1}
• Review the Federal Communications Commission's (FCC) advice on how to stop these unwanted calls and texts.^{See note1}

Venmo, PayPal, Zelle® and Cash App scams

If you've ever known anyone who was the victim of a Publisher's Clearing House scam, you're familiar with this grift. Someone, usually an elderly person, got a phone call or a letter saying they won big — but before they receive a check, they've got to pay taxes and fees upfront.

Scams like these have gotten even easier to pull off as an increasing number of people use payment apps like Venmo, Zelle® and Cash App. What's especially dangerous about these scams is that they rely on your willingness to transfer money, which can make it harder to recover than in cases of outright fraud.

Impostor scams

Impostor scams can be similar to phishing scams, but instead of seeking your personal information, fraudsters ask you to send them money directly.

In these cases, scammers often impersonate family members, friends, financial institutions, legitimate companies or government agencies like the IRS or Social Security Administration. They may give you an elaborate story to guilt you into sending money, or they could intimidate you with the threat of fines or even time in jail. Check out this article on how to avoid tax scams.

How to avoid impostor scams:

• If you get suspicious messages from people you know, contact them by phone or some other means to verify they sent you the messages. This is especially important if they ask for money or personal information.
• Don't send money to people you don't know personally or whose identity you can't verify in person, through mobile payment apps or any other means.

Craigslist, Facebook Marketplace and housing rental scams

There can be tricky scenarios if you've bought or sold items through online sites like Craigslist or Facebook Marketplace. Imagine this one, a sketchy seller promises to ship something or travel to meet you in person if you send money in advance. Then they remove the listing and you never hear from them again.

On the selling end, you might connect with a prospective buyer who convinces you to ship an item so they can try it out. Then they disappear when it's time to pay you.

Some scammers take photos and information from legitimate rental property listings and fraudulently repost them on other sites like Craigslist. They then gather personal information and sometimes collect deposits from people before taking the listing down.

How to avoid housing rental scams

Occasionally, scammers list rental properties on sites like Airbnb and Vrbo®. When prospective renters reach out to reserve the property, the scammers ask for a security deposit or advance payment through a different channel that's not approved by the company. It's uncommon that these types of scammers slip through the companies' vetting processes, but it does happen.

After these fraudsters have accepted your deposit, you're left with little recourse because you willingly sent the money without knowing the platform wasn't allowed under the organization's policy.

Both Vrbo® and Airbnb offer advice on how to tell if a property owner is legitimate. Before using these services, familiarize yourself with their policies and recommendations. Learn more on the following websites.

• Vrbo®
  • How do I determine that a property and owner are legitimate? (Opens in new window)^{See note1}
  • Avoid phishing, smishing and vishing scams (Opens in new window)^{See note1}
• Airbnb
  • Avoiding fraud, scams and abuse (Opens in new window)^{See note1}

  Adhering to a few best practices will help keep you financially secure whether you're looking for a rental property or shopping online:

  • Be wary of listings that seem too good to be true.
  • Watch out for sellers or hosts with no history and reviews that don't seem genuine. If reviews are overwhelmingly positive and contain little substance — or if they're repetitive and seem to have been written by the same person, they're likely fake.
  • If you're trying to book a rental through sites like Airbnb and Vrbo,® only correspond with hosts and make payments through their site or app. Don't give hosts any financial information, including credit card or account numbers, for any reason.
  • Don't ever send hosts money through mobile payment apps that have not been clearly communicated and agreed upon before booking. In almost all cases, you should only pay Airbnb and Vrbo® directly.
  • Don't ever sign a lease or make a deposit before you've been given the option to see a property yourself.

  Do banks refund scammed money?

  This is one of the most frequently asked questions when people realize they've been the victim of banking or phishing scams.

  The answer to whether banks refund scammed money is usually, "It depends." In cases where someone fraudulently accesses your account and transfers money without your consent, you typically are able to recover those funds if you contact your bank early enough. That's why it's important to monitor your statements regularly.

  If someone scams you into sending them money, it may be more difficult to get your money back. You should report it with both your bank and with the mobile payment service you used right away, but you may not be able to recover the money.

  How to help protect your bank account from fraud

  At USAA Bank, we employ sophisticated fraud detection processes that are even more effective when used in partnership with our members and bank customers.

  You can take these steps to help us protect your bank account from fraud:

  • Use two-factor authentication to add an extra layer of security when you log onto your accounts.
  • Change your passwords regularly and don't reuse the same passwords for different accounts.
  • Avoid logging onto sites that contain financial information over public Wi-Fi. If you find yourself needing to do this, use mobile data or a virtual private network (VPN) encryption.
  • Monitor your debit and credit card transactions regularly. Report suspicious charges to your bank's fraud department as soon as you notice them.
  • Sign up for mobile alerts so you'll be immediately notified of transactions you didn't authorize.
  • Check your credit reports for free at annualcreditreport.com (Opens in new window).^{See note1} Look for credit accounts and loans for which you didn't apply.
  • If you think you need additional protection, you may also benefit from personal cyber insurance.

  Anytime one of your accounts is compromised, or you realize you've sent money to a scammer, report it to the FTC (Opens in new window).^{See note1}

  Military members are a special target for scammers. Military members need to be extra vigilant, which is why we created this article that focuses on 10 common scams on service members.

  The USAA Advice Center provides general advice, tools and resources to guide your journey. Content may mention products, features or services that USAA Federal Savings Bank does not offer. The information contained is provided for informational purposes only and is not intended to represent any endorsement, expressed or implied, by USAA or any affiliates. All information provided is subject to change without notice.