Scam Awareness Guide: Identify and Avoid Common Fraud Schemes

Published: December 13, 2024 • By CitronFraud Team

Scam awareness is your most powerful tool against fraud. By understanding how scammers operate and recognizing their tactics, you can protect yourself and your loved ones from falling victim to their schemes.

The Psychology Behind Scams

Scammers exploit basic human emotions and cognitive biases to manipulate their victims:

Common Fraud Schemes Explained

The Grandparent Scam

A caller pretends to be a grandchild in trouble, often claiming to be in jail or involved in an accident. They urgently request money and beg the grandparent not to tell anyone. Always verify by calling the grandchild directly at their known number.

The Utility Shut-Off Scam

Scammers call claiming to be from your utility company, threatening immediate service disconnection unless you make a payment over the phone. Legitimate utility companies provide written notice before disconnection and never demand payment via gift cards.

The Fake Check Scam

You receive a check for more than the expected amount and are asked to deposit it and wire back the difference. The check eventually bounces, and you lose the money you sent. Banks may make funds available before fully verifying a check, creating a window for this scam to work.

The Employment Scam

Fake job postings promise high pay for minimal work. They may ask for personal information for a fake background check, request payment for training materials, or send you fraudulent checks as part of a reshipment scheme.

How to Verify Legitimacy

  1. Look up the organization's official contact information independently — do not use numbers or links provided by the potential scammer
  2. Check with the Better Business Bureau (BBB) for complaints
  3. Search online for the company name plus words like "scam" or "fraud"
  4. Ask for everything in writing and take time to review before responding
  5. Consult with a trusted friend, family member, or professional before making financial decisions under pressure

Teaching Others About Scam Awareness

Share your knowledge with vulnerable populations, particularly elderly family members, teens new to online interactions, and recent immigrants who may be unfamiliar with local scam tactics. Open conversations about scams reduce shame and make it easier for people to ask for help when targeted.

Remember: legitimate organizations will never pressure you for immediate payment, request unusual payment methods, or ask you to keep the transaction a secret. When in doubt, hang up, step back, and verify independently.

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