Four signs it's a scam, and what to do next
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Most scams don't look like scams at first. They look like a call from your bank, a text about a package or a message saying you won something. The details change. The pattern underneath them changes much less.
Talk about it at home: jump to the Kitchen Table Talk
The Federal Trade Commission (FTC), which calls itself "the nation's consumer protection agency," lists four signs that a contact is a scam. Learn the four signs and you don't need to know every new trick.
Scams are common. The FTC says "nearly one in three fraud reports were about imposter scams" in 2025, and that "about $16 billion was reported lost in 2025, the highest on record."
Sign 1: They pretend to be from an organization you know
The first sign is a familiar name. The FTC says "Scammers often pretend to be contacting you on behalf of the government." Others claim to be a business you know, like your utility company, a tech company or a charity.
A real-looking phone number doesn't settle it. The FTC explains that scammers can change the number that shows up on caller ID: "So the name and number you see might not be real."
The FTC also says what it will never do: "The FTC will never threaten you, say you must transfer your money to 'protect it,' or tell you to withdraw cash or buy gold and give it to someone."
Our advice: if a message claims to be from a company or agency, don't use the phone number or link it gives you. Contact them yourself, using a number from your card, a statement or a website you already know.
Do this now: Save the customer service numbers for your bank and card company in your phone, copied from the back of your card or a statement.
Sign 2: There's a problem or a prize
The second sign is a story built to get a reaction. The problem might be that you owe money, that someone in your family is in trouble or that something is wrong with your computer. The FTC notes that "Some scammers say there's a problem with one of your accounts and that you need to verify some information."
The prize story works the other way. The FTC says "Others will lie and say you won money in a lottery or sweepstakes but have to pay a fee to get it."
Our rule of thumb: a prize that costs money to collect isn't a prize. And as the FTC asks on its gift card page, "And did you even enter to win that prize?"
Our rule of thumb: a promise of big, sure profits on an investment is a close cousin of the prize story. Our lesson on why guaranteed returns are a warning label covers those pitches.
Do this now: Think of the last message that said something was wrong with an account. Could you have checked it by logging in on your own?
Sign 3: Pressure to act right now
The third sign is a clock. The FTC says "Scammers want you to act before you have time to think." On a call, the FTC says, "they might tell you not to hang up so you can't check out their story." The pressure can come as a threat, like arrest, a lawsuit or a lost license.
The FTC's answer is time: "Honest businesses will give you time to make a decision."
Our advice: pick one calm line ahead of time, so you don't have to think of one under pressure. For example: "I'll call back using the number I have."
Do this now: Write your call-back line in your phone's notes and say it out loud once.
Sign 4: They tell you to pay in a specific way
The fourth sign is the payment method. As the FTC puts it, "Scammers ask you to pay in ways that make it hard to track them down." The FTC's advice is direct: "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. And never deposit a check and send money back to someone."
That last point is the fake check. The FTC describes it this way: "Some will send you a check (that will later turn out to be fake), then tell you to deposit it and send them money." The FTC's gift card page puts it plainly: "That check will be fake and you'll be out all that money."
On gift cards, the FTC is clear: "Gift cards are for gifts. Only gifts. Not for payments."
Do this now: If anyone asks you to pay with a gift card, crypto, a wire or a payment app, treat that as your cue to stop and check.
What to do: stop, talk, report
Stop. Don't reply, click a link or pay. If you think the message might be real, the FTC says to "contact them using a website you know is trustworthy. Or look up their phone number."
Talk to someone you trust. The FTC suggests telling a friend, a family member or a neighbor what happened before you do anything else. It says "Talking about it could help you realize it's a scam."
Report it. Tell the FTC at ReportFraud.ftc.gov, even if you didn't lose money. The site says "Your report is shared with over 2,000 law enforcers." It also says: "We can't resolve your individual report, but we use reports to investigate and bring cases against fraud, scams, and bad business practices."
Do this now: Save ReportFraud.ftc.gov in your phone's bookmarks.
If you already paid
Move quickly, and don't be embarrassed. The FTC says "If you paid a scammer, your money might be gone already. But it's always worth asking the company you used to send the money if there's a way to get it back."
Contact whoever moved the money right away: your bank or credit union, your credit card issuer, the payment app, the wire transfer company, the gift card company or the crypto exchange. Tell them a scammer tricked you, and ask them to reverse the payment and refund your money. The FTC notes that "Cryptocurrency payments don't have the same legal protections as credit and debit cards do, so it can be hard to get your money back."
Do this now: Next to your bank's number in your phone, add a note: "If I ever pay a scammer, call this first."
Teach it this week
Big idea: Most money scams share four signs: a familiar name, a problem or prize, pressure to act now, and a specific way to pay.
Teacher background: The FTC lists these four signs on its page How To Avoid a Scam, date checked: Oct 22, 2026. It says "Scammers want you to act before you have time to think."
10-minute classroom version
- Hook (2 min): Ask: "Has anyone gotten a text or call that felt off? What made it feel off?"
- Explain (3 min): Write the four signs on the board: pretend, problem or prize, pressure, pay.
- Practice (4 min): In pairs, read three made-up messages, for example: "Your account is locked. Reply with your PIN in 10 minutes or it will be closed." Students circle each sign they find.
- Exit ticket (1 min): Write the one sign you think is easiest to miss.
Kitchen Table Talk
- Has anyone in our family gotten a message that turned out to be a scam?
- Which of the four signs would be hardest for you to notice?
- Who would you call first if something felt off?
- What is one thing we would never send to someone who contacted us?
Do it together: On paper, write one made-up scam message together and label each of the four signs in it, with no real names, numbers or account details.
One family action: Agree on one person each of you will call before paying anyone who contacted you first.
Education only, not financial, legal or tax advice. Not a registered investment adviser.
Sources
- FTC: How To Avoid a Scam, page dated July 2023, date checked: Oct 22, 2026
- FTC: What To Do if You Were Scammed, page dated June 2026, date checked: Oct 22, 2026
- FTC: ReportFraud.ftc.gov, no page date shown, date checked: Oct 22, 2026
- FTC press release: FTC Data Show People Reported Losing $3.5 Billion to Imposter Scams in 2025, June 15, 2026, date checked: Oct 22, 2026
- FTC: Avoiding and Reporting Gift Card Scams, page dated July 2023, date checked: Oct 22, 2026