5 Ways to Outsmart an Online Scammer and Protect Your Savings

Online scammers are working full-time to get your hard-earned savings, but their playbook is surprisingly simple. Learning to spot the five common psychological tricks they use is the best way to outsmart them and keep your money safe.

It feels like every day we hear about a new online scam. These schemes are getting more sophisticated, and frankly, it’s their full-time job to try and trick us.

In 2023 alone, older adults lost nearly $62 billion to fraud, with the average victim losing almost $34,000.

But you don’t have to live in fear. Scammers tend to use the same psychological tricks over and over again. Once you learn their playbook, you can spot them from a mile away and keep your hard-earned money safe.

Here are five common red flags to watch for.

1. They Create a Sense of Urgency

Scammers don’t want you to have time to think. They will rush you into making a decision by saying an offer is for a "limited time only" or that you must pay immediately to avoid terrible consequences.

You might get a text about a loan application that says, "This is the last step," or an email about a tech support subscription that requires you to call within 24 hours to dispute a charge.

How to protect yourself: Slow down. Legitimate companies and government agencies won't pressure you to act instantly. If something feels rushed, take a moment to pause and think it through.

2. They Pretend to Be Someone You Trust

This is one of the most common tactics. Scammers will pose as an authority figure you’d normally trust, like the IRS, your bank, or a well-known company like Amazon or Geek Squad.

They might call pretending to be from tech support, claiming your computer has a virus. They can even "spoof" a caller ID to make it look like the call is from a familiar organization.

How to protect yourself: Hang up. If you think the call or message might be real, contact the company or agency yourself using a phone number from their official website—not the one provided by the potential scammer.

As one expert advises, “When in doubt, pause, ask questions, and locate the officially listed number... Hang up or disconnect with the chat session and call a trusted number before sending any funds.”

3. They Trigger a Strong Emotion

Scammers try to get you to act out of fear or excitement. They might scare you with a fake pop-up warning that your computer has been hacked or that your name is linked to serious crimes like drug trafficking.

On the other hand, they might try to excite you with a text saying you’re pre-approved for a $10,000 loan you never applied for. Their goal is to get you so flustered that you act impulsively.

How to protect yourself: Talk to someone you trust. Before you do anything, tell a friend or family member what’s happening. Just talking it through can help you realize it’s a scam.

4. They Ask for Unusual Payment Methods

If someone demands that you pay them with gift cards, a wire transfer, cryptocurrency, or a payment app, you can be almost certain it’s a scam.

Scammers prefer these methods because they are like sending cash—once the money is gone, it’s nearly impossible to get back. No legitimate company or government agency will ever tell you to withdraw cash or buy gold to "protect" your money.

How to protect yourself: Never pay anyone who insists on these forms of payment. It’s a giant red flag.

5. They Ask You to Click a Link to "Verify" Information

Many scams start with a simple text or email that looks official, often claiming to be from the IRS or a state tax office about your refund. The message will ask you to click a link to "verify your identity" or "claim your money."

This is a phishing scam designed to steal your Social Security number, bank details, or other personal information.

How to protect yourself: Don't click the link. The real IRS won't reach out by text or email to get your information. To check on a real refund, go directly to the official government website yourself.

If you suspect you've been scammed, report it to your bank immediately. You can also help protect your community by reporting the incident to the Federal Trade Commission at ReportFraud.ftc.gov.

We have to battle the "culture of silence around frauds and scams" and make it okay to ask for help.