What should first-timers know about financial scams and identity theft in the US?

By FastBuySale Newsroom · 5 Nov 2026 · 57m ago

Scam basics: how do I recognise a scam?

Financial scams and identity theft in the US follow patterns you can learn to spot. The short answer from the Federal Trade Commission (FTC): scammers pretend to be from an organization you know, say there is a problem or a prize, pressure you to act immediately, and tell you to pay in a specific way such as cryptocurrency, a wire transfer, a payment app or a gift card. If you see those signs, stop, do not pay, and check the story yourself using contact details you look up independently.

Identity theft is different: someone uses your personal information, such as your Social Security number or account details, to open accounts, make charges, file a tax return or get medical care in your name. If it happens, the FTC's IdentityTheft.gov is the federal government's one-stop resource for victims. It creates an FTC Identity Theft Report and a personal recovery plan.

What are the four signs of a scam? The FTC lists them as: 1) Scammers PRETEND to be from an organization you know, often a government agency such as the FTC, Social Security Administration, IRS or Medicare, or a business such as a utility, tech company or charity. 2) They say there is a PROBLEM or a PRIZE: you owe money, a family member has an emergency, your computer has a virus, or you won a lottery but must pay a fee. 3) They PRESSURE you to act immediately, sometimes telling you not to hang up, or threatening arrest, a lawsuit, loss of a licence or deportation. 4) They tell you to PAY in a specific way.

Can I trust caller ID? Not on its own. The FTC warns that scammers use technology to change the phone number that appears on caller ID, so the name and number you see might not be real.

What other warning signs does the CFPB list? Watch out if someone claims to be from the government, a financial institution, a business or someone you know and asks you to send money; asks you to pay money or taxes upfront to receive a prize or gift; asks for access to your ATM cards, bank accounts, credit cards, crypto wallet or investment accounts; or creates urgency, for example saying a deal will not last.

What about messages that look like they come from my bank? The FTC says that even if you think an email or text from a company you do business with is real, it is still best not to click its links. Contact the company through a website you know is trustworthy, or look up its number yourself. Do not call a number the message gave you or the number on your caller ID.

Do honest organizations ask for my details by phone or text? The FTC says honest organizations will not call, email or text to ask for your personal information, like your Social Security, bank account or credit card numbers, in a request you did not expect.

Payments: why do scammers want gift cards, wires and crypto?

Which payment methods are red flags? The FTC says never pay someone who insists you can only pay with cryptocurrency, a wire transfer service like Western Union or MoneyGram, a payment app, or a gift card. Federal guidance shared by the New Hampshire Banking Department adds cash to that list and explains why: once you pay these ways, it is hard to track and hard to get your money back.

Is a gift card request always a scam? The FTC is blunt: only scammers will tell you to buy a gift card and give them the numbers off the back. No real business or government agency will ever tell you to buy a gift card to pay them. The card number and PIN let the scammer take the money even if you still hold the card.

How do gift card scams usually play out? The FTC describes scammers who say it is urgent, tell you exactly which card to buy and at which store, sometimes send you to several stores so cashiers will not get suspicious, and may stay on the phone while you load money. If that happens, hang up.

What is the fake check trick? Some scammers send a check, often for more than expected, and ask you to deposit it and send back the difference. The FTC says never deposit a check and send money back to someone; the check will turn out to be fake and you will be out that money. Sellers using online marketplaces should be especially alert to overpayment offers.

I paid with a gift card. What now? The FTC says report it to the gift card company right away, no matter how long ago it happened, and ask for your money back, keeping the card and store receipt. Some companies may refund you, so it is worth asking.

Worked example: a caller claiming to be from a government agency says you owe a $900 fine and must pay today with three $300 gift cards bought at different stores. Every element matches the FTC's warning signs: impersonation, a problem, pressure and a specific payment method. The right move is to hang up and contact the agency directly using details you find yourself.

Identity theft: how do I know my information was stolen?

What can a thief do with my information? According to IdentityTheft.gov, identity thieves can drain your bank account, run up charges on your credit cards, open new utility accounts, get medical treatment on your health insurance, or file a tax refund in your name and get your refund. In extreme cases a thief may give your name to police during an arrest.

What are the warning signs? IdentityTheft.gov lists: withdrawals from your bank account you cannot explain; bills or other mail that stop arriving; merchants refusing your checks; debt collectors calling about debts that are not yours; unfamiliar accounts or charges on your credit report; medical bills for services you did not use; a health plan rejecting a legitimate claim because records show you reached your limit, or refusing cover for a condition you do not have; IRS notices that more than one tax return was filed in your name or that you have income from an employer you do not work for; and notice that your information was exposed in a data breach.

How often should I check my credit? Regular reviews help you spot unfamiliar accounts early. Our guide explains what a report contains and how to read it.

Does a strange charge always mean identity theft? Not always, but it is worth checking. Compare each statement line against your receipts, and if you are already carrying card balances, the shows how long a balance takes to clear.

Recovery: what should I do if it happens to me?

Step 1: Call the companies where you know fraud occurred. IdentityTheft.gov says call the fraud department, explain that someone stole your identity, ask them to close or freeze the accounts so no one can add new charges without your agreement, and change logins, passwords and PINs.

Step 2: Place a fraud alert and get your credit reports. A fraud alert is free and lasts one year. Contact one of the three credit bureaus and that company must tell the other two. With an alert on your file, a business must verify your identity before issuing new credit in your name. You can renew it after a year. Review your reports and note any account or transaction you do not recognize. For stronger protection, see

Step 3: Report identity theft to the FTC. Complete the online form at IdentityTheft.gov or call 1-877-438-4338. Based on what you enter, the site creates your Identity Theft Report and recovery plan. The report proves to businesses that someone stole your identity and guarantees you certain rights. If you create an account, the site walks you through each step and pre-fills forms and letters. If you do not, print and save the report and plan right away, because you cannot access them after leaving the page.

Should I go to the police? You may choose to file a report with your local police department. IdentityTheft.gov suggests bringing a copy of your FTC Identity Theft Report, a government-issued photo ID, proof of address such as a mortgage statement, lease or utility bill, and any other proof such as bills or IRS notices. Ask for a copy of the police report.

What comes next? With your FTC report, call the fraud department of each business where an account was opened in your name, ask it to close the account, and ask for a letter confirming the account is not yours, you are not liable, and it was removed from your credit report. Keep that letter.

Can scammers pretend to be the FTC itself? Yes. IdentityTheft.gov warns that scammers impersonate the FTC, claiming your information was used to open accounts. The FTC will never threaten you, tell you to transfer money to protect it, or tell you to withdraw cash or buy gold and hand it to someone.

Prevention habits: block unwanted calls and filter texts, resist pressure, and stop and talk to someone you trust before acting, as the FTC advises. If you send money overseas, read and compare legitimate borrowing offers with the rather than trusting unsolicited loan pitches. More calculators are at

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