15 Fraud Prevention Tips To Keep Your Money Safe

Americans lose a whopping $148.2 billion a year to online scams, according to the Consumer Federation of America. This breaks down to a little over $1,000 per U.S. household.

The bad news is, bad actors have grown quite savvy when it comes to financial fraud and other scams. Fortunately, there are ways to protect yourself from them.

These are the top fraud prevention tips to keep your finances safe.

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Key Takeaways

• Scams are a massive, growing threat. Americans lost an estimated $148.2 billion to online scams in 2025 — about $1,009 per household.

• Imposter scams are the most common type. People reported losing $3.5 billion to them in 2025, nearly triple the 2020 figure, so verify any "bank" or "agency" contact through an official channel.

• Social media is a scammer's favorite hunting ground. Facebook, Instagram and WhatsApp top the list, and nearly 60% of romance-scam victims say it started on social media.

Summary generated by AI, verified by MoneyLion editors

1. Verify Information To Avoid Imposters

The FTC estimates people lost an estimated $3.5 billion to imposter scams last year. This is almost three times higher than it was in 2020, making this the most common type of fraud out there.

Bad actors may claim they’re with a government agency, like the FDIC. They communicate through email, phone calls, letters, texts, social media and even faxed messages. Usually, these messages will ask you to do something like “confirm” or “update” confidential personal financial info, like bank account numbers.

Fraud prevention tip: Verify who’s contacting you before clicking any links or sharing personal info of any kind. To do this, contact them through an official means. Say, for example, someone contacts you from a specific agency. Find their official number and call it to see who picks up.

2. Watch Out for Romance Scammers

Romance scams are when someone creates a fake online profile to engage with their victims and try to swindle them out of money. They’re common on dating sites, but they’re most prevalent on social media. In fact, 60% of people who’ve reported losing money to romance scams said it began on social media.

Fraud prevention tip: Romance scammers try to develop an online relationship. Once they’ve earned your trust, they typically ask for money or a gift card. Never send anything to someone you’ve never met before or don’t truly know.

3. Be Wary of Potential Identity Theft

Some bad actors will try to steal your identity to commit fraud. Sometimes, all they need is your full legal name and another identifying detail like your Social Security or credit card number. They might also have other details, like your phone number or physical address.

With this info, they can do things like apply for credit cards or open other accounts in your name. They can even rent an apartment or receive government benefits or tax refunds. This can severely damage your financial and credit health. It can also take months or years to untangle this kind of fraud.

Fraud prevention tip: Regularly check your banking and credit card accounts. Set up real-time alerts with your banks for any transactions that occur. Also, get a free weekly copy of your credit report from Annualcreditreport.com to ensure everything looks right.

4. Be Careful When Filling Out Information Online

You might need to provide information online, like if you’re applying for a line of credit or personal loan. The same goes for making an online purchase. But be cautious with what you’re sharing and with which entity. It might not be legit.

Fraud prevention tip: Verify if the website you’re on is secure. It should have “HTTPS” as part of the URL. Carefully read the URL to make sure there aren’t any strange characters in it. If even a single letter is off, it could be a fraudulent site.

5. Avoid Sending Private Information Through Text and Emails

Fraudsters will sometimes operate primarily through email or text. They will contact you through suspicious or unknown addresses/numbers. They’ll also generally include a link you’re meant to click on. Don’t do it.

Fraud prevention tip: Only communicate through secure channels. Never click on suspicious links or sign into your accounts from those links. If you get a strange email or text message, mark it as spam or block the sender.

6. Strengthen the Security of Your Account Logins

Between 63% and 77.8% of people who are targeted by bank account fraud end up losing money. Depending on when you catch it, and how much was initially in your account, losses could be in the hundreds or thousands of dollars.

That’s why it’s so important to secure your accounts. Many financial institutions do offer fraud protection, but getting your money back is still a stressful process. It’s also not guaranteed.

Fraud prevention tip: Choose a strong, unique password for every online account so if one account gets hacked they’re not all vulnerable. Also, enable multi-factor authentication on your accounts to secure your information.

7. Don’t Save Credit and Debit Card Info Online

Saving your payment information online is convenient, but it also makes your accounts more vulnerable to fraud. It might make sense to save your info for things like subscriptions or utility bills. But even then, there’s a risk.

Fraud prevention tip: Only save your credit or debit card information for secured, automatic payments. Remove any payment info for past accounts, or ones that aren’t active anymore.

8. Lock Your Bank Accounts

PYMNTS reported that just 53% of scam victims recovered their stolen bank account money. The longer you wait to report the theft, though, the lower your chances of getting back what was lost.

Fraud prevention tip: If you suspect someone has access to your credit or debit cards, contact your bank and ask them to temporarily lock your account. This will prevent anyone from making purchases, including yourself. It can also protect your money while you’re figuring out your next steps.

9. Freeze Your Credit

The 2025 Consumer Impact Report found that over 20% of identity theft victims lose more than $100,000. Roughly 10% lose a whopping $1 million.

Freezing your credit can help protect you from identity theft. A freeze prevents anyone from opening new credit accounts in your name. It’s free and doesn’t impact your credit score. You will need to contact all three credit reporting bureaus to do this.

Fraud prevention tip: Be aware of any data breaches involving your personal information. Check your accounts regularly and don’t hesitate to place a freeze on your credit the moment you see something suspicious. You can unfreeze your accounts at any time.

10. Place a Fraud Alert

A fraud alert can protect your accounts by notifying you the moment something goes wrong. There are three main types and how long they last:

• Initial fraud alert (1 year): Tells businesses to contact you before opening any new credit accounts in your name

• Extended fraud alert (7 years): Same as the initial fraud alert, but also tells the credit bureaus to remove you from marketing lists

• Active duty fraud alert (1 year): Similar to the initial fraud alert, but for active duty service members

Fraud prevention tip: Place an initial fraud alert by contacting one of the three credit bureaus. If you’ve experienced identity theft in the past, and you’ve filed a police report, set up an extended fraud alert.

11. Don’t Make Odd Types of Payments

Another common scam is when someone asks you to send them money through something like a gift card, payment app or wire transfer. Gift card scams are particularly common. With this, the scammer will ask you to purchase a gift card and then give them the numbers on the back of the card.

Fraud prevention tip: Don’t respond to anyone who requests payment through a gift card or other payment app. Keep copies of your gift cards and store receipts, too. You can use them to report gift card scams or potentially get your money back.

12. Avoid Requests for Urgent Payment

Urgency is a common marketing tactic designed to get you to make a purchase before it’s “too late.” Unfortunately, many scammers also use this tactic to try to pressure you into giving them money or personal information before you can verify anything.

For example, they might say you need to log into your account or send payment right now to avoid getting charged fees. Or they might say you qualify for a low interest rate or great discount, but only if you click on a link within the next few minutes.

Fraud prevention tip: If you’re unsure about the authenticity of a claim, contact your service provider or bank through an official channel. Know that legitimate agencies also won’t use these scare tactics.

13. Watch Out for Mail Fraud

Online fraud isn’t the only type out there. Mail fraud is when you receive an official-looking document, usually one that promises something. In exchange, you need to send money or personal info.

Some types of mail fraud are more threatening. For example, you might receive a letter that seems to be from your bank. On the front, it says something like “FINAL NOTICE.” Attached is something that looks like a refund check.

Fraud prevention tip: This type of mail is most likely a scam. Cross-reference any mail you receive with the official source. Check for official details, like an actual signature from the sender. Don’t act until you’ve done your research.

14. Be Cautious of AI Scams

AI-related scams are more prevalent than ever. Some of the most common ones are:

• Fake social media profiles used to trick people out of their money

• Fraudulent websites for cryptocurrency and other investments

• AI-powered chatbots on unsecured sites designed to get you to click malicious links

• Fraudulent IDs for impersonation or identity fraud

• AI-generated photos to make you think you’re talking to a real person

• AI images of natural disasters or other conflicts designed to get you to donate money

• Voice cloning (often short clips of someone you trust asking for money)

Fraud prevention tip: Pay close attention to anything that seems off in images, audio or video. Verify anything you can, like supposed natural disasters. Create a safe word with your family for identity verification.

15. Be Careful Who You Engage with on Social Media

Social media platforms are a prime spot for bad actors. According to the CFA, the main platforms associated with scams are Facebook (57%), Instagram (22%) and WhatsApp (8%). Along with this, 81% of all online scam attempts occur on platforms with a direct messaging feature.

Fraud prevention tip: Never share personally identifying info on social media, not even in direct messages. Try to only engage with people you actually know. Don’t send money to anyone you’ve met on these platforms unless you can verify their legitimacy.

The Bottom Line 

Fraud can happen to anyone. If you believe it’s happened to you, don’t wait. The sooner you report it, the better your chances of recovering your money or protecting your identity. You can file a report with ReportFraud.ftc.gov or IdentityTheft.gov.

FAQ 

What’s the most effective way to prevent fraud?

Regularly updating your passwords and keeping sensitive information off the internet can help keep your finances (and credit) safe from scammers. Other options include setting up multi-factor authentication and monitoring your accounts through real-time notifications.

Is two-factor authentication effective?

Having two-factor authentication is better than only using a password. When you only have a password, all a scammer needs is that and your username. Set up other security measures, like a one-time passcode via text message or an authenticator app.

How often should you change your passwords?

Update your passwords once every three months or whenever you’re concerned about online fraud or theft.

When should I review my credit report?

Check your credit reports once a year to make sure everything is accurate. Also, check for suspicious or duplicate accounts. If you find anything that doesn’t look right, report it right away.

Are some people more susceptible to fraud?

An estimated 73% of U.S. adults have experienced an online scam, according to Pew Research Center. Anyone can be a victim of fraud, at any age. By age, those who report being targeted by a scam are: ages 18-29 (73%), ages 30-49 (77%), ages 50-64 (76%) and ages 65+ (66%).

Key Terms

• Imposter scam — Fraud in which someone poses as your bank, a government agency or a trusted business to trick you into sending money or sharing information.

• Phishing — Scam emails, texts or calls with malicious links designed to steal your login details or personal data.

• Romance scam — A con built on a fake online relationship, usually ending in a request for money or gift cards, most often starting on social media.

• Credit freeze — A free restriction that blocks new accounts from being opened in your name until you lift it; it doesn't affect your credit score.

• Fraud alert — A notice on your credit file telling creditors to verify your identity before extending credit; the initial alert lasts one year and an extended alert lasts seven.

• Multi-factor authentication (MFA) — A login method requiring two or more verification steps, so a stolen password alone isn't enough.

• HTTPS — The secure, encrypted version of a web connection; the "S" signals encryption, though it no longer guarantees a site is legitimate.

• Voice cloning — An AI technique that mimics a trusted person's voice, often used to fake an urgent request for money.

Sources

• Consumer Federation of America — The Scam Economy: The True Cost of Online Scams

• Federal Trade Commission — People Reported Losing $3.5 Billion to Imposter Scams in 2025

• FTC — Reported Losses to Scams on Social Media Eight Times Higher Than in 2020

• Pew Research Center — Online Scams and Attacks in America Today

Summary generated by AI, verified by MoneyLion editors