How to Recognize and Avoid Online Scams: A Step-by-Step Tutorial
According to the FBI's 2024 Elder Fraud Report, Americans over 60 reported $4.8 billion in losses from cybercrime—an 83% increase from the previous year. The good news? Most scams follow predictable patterns. Once you learn these patterns, you'll be able to spot and avoid fraud attempts with confidence.
The Numbers Don't Lie
Understanding How Scammers Operate
Scammers use psychology, not technology, to trick you. They exploit basic human responses: fear, urgency, trust, and greed. Recognizing these psychological tactics is your first line of defense.
1. Creating Urgency
"Your account will be closed in 24 hours!" This pressure tactic forces you to act before thinking. Legitimate companies give you time to respond.
2. Impersonating Authority
Posing as banks, government agencies, or tech companies. They count on you trusting these institutions without verification.
3. Exploiting Emotions
Fear ("You owe taxes"), sympathy ("Grandma, I need bail money"), or excitement ("You won a prize!").
4. Requesting Unusual Payment
Gift cards, wire transfers, cryptocurrency—methods that can't be reversed. No legitimate business operates this way.
Step 1: Identifying Phishing Emails
Phishing emails are fake messages designed to steal your passwords, financial information, or identity. Here's how to spot them systematically.
Check the Sender's Email Address
Real companies use their official domain. Compare these examples:
support@amazon.com amazon-support@gmail.com alerts@bankofamerica.com bankofamerica-verify@outlook.com Inspect Links Before Clicking
On a computer: Hover your mouse over any link without clicking. The real destination appears at the bottom of your browser.
On a phone/tablet: Press and hold the link. A preview will show where it actually leads.
Look for Language Clues
Professional companies proofread their communications. Watch for:
- Generic greetings like "Dear Customer" (real companies use your name)
- Grammar mistakes or awkward phrasing
- Urgent threats about account closure
- Requests for passwords or Social Security numbers
What to Do If You're Unsure
- Don't click any links in the suspicious email
- Open a new browser window
- Type the company's official website address yourself
- Log into your account directly to check for legitimate alerts
- Call the company using a phone number from their official website
Step 2: Handling Suspicious Phone Calls
Phone scams have become more sophisticated with AI voice cloning technology. The top scams reported in 2025 include AI-powered calls that mimic family members' voices.
Government Impersonation
The Call: "This is the IRS. You owe back taxes and will be arrested if you don't pay immediately."
The Truth: The IRS never calls without first mailing letters. They don't threaten arrest or demand immediate payment.
Tech Support Scams
The Call: "Your computer has been infected with a virus. We detected it and need to fix it right away."
The Truth: Microsoft, Apple, and legitimate tech companies never make unsolicited calls about viruses.
Grandparent Scams (AI-Enhanced)
The Call: A voice that sounds like your grandchild says, "Grandma, I'm in trouble. I need money right away. Don't tell Mom and Dad."
The Truth: Scammers now use AI to clone voices from social media videos, making the call sound incredibly realistic.
Pro Tip: Create a Family Code Word
Establish a secret word or phrase with family members that can be used to verify emergency calls. Scammers won't know this code.
Step 3: Verifying Website Security
Before entering personal information on any website, verify its legitimacy. Here's a systematic approach.
Check for HTTPS
Look for "https://" and a padlock icon in your browser's address bar. The "s" stands for secure. However, scammers can also use HTTPS, so this alone isn't enough.
Verify the Domain Name
Scammers create lookalike domains. "paypa1.com" (with a number 1) isn't "paypal.com." Be extra careful with domains that add words like "secure-" or "-verify."
Look for Contact Information
Legitimate businesses display phone numbers, physical addresses, and support email addresses. Scam sites often lack these details or provide fake information.
Check Website Age
Visit whois.domaintools.com to check when a domain was registered. Scam sites are often very new (days or weeks old).
Review Privacy Policy and Terms
While tedious, legitimate companies have detailed legal documents. Scam sites often have vague, copied, or missing privacy policies.
Step 4: Recognizing Investment and Romance Scams
According to the FTC's 2024-2025 report, older adults lost more money to investment scams than any other fraud type, with many scammers targeting victims on social media.
Investment Scams
- Promises of unusually high returns with "no risk"
- Pressure to invest immediately before the "opportunity closes"
- Complex strategies you don't fully understand
- Difficulty withdrawing your money once invested
- Unregistered investment advisors (check FINRA BrokerCheck)
Romance Scams
- Quick progression from meeting online to declarations of love
- Excuses for why they can't meet in person or video chat
- Sudden emergencies requiring financial help
- Requests to move conversation off the dating site
- Stories of being overseas (military, oil rig, humanitarian work)
Reality Check
If someone you've never met in person asks for money, gift cards, or investment advice, it's a scam. Period. Real romantic interests don't request financial assistance from strangers.
Step 5: Building Your Defense System
Prevention is easier than recovery. Implement these protective measures:
Use Password Managers
Tools like Bitwarden (free) or 1Password create and store strong, unique passwords for each account. You only need to remember one master password.
Enable Two-Factor Authentication
Add an extra layer of security requiring a code from your phone in addition to your password. Enable this on email, banking, and social media accounts.
Monitor Your Credit
Get free credit reports at AnnualCreditReport.com (official government-authorized site). Review them for unauthorized accounts or inquiries.
Freeze Your Credit
A credit freeze prevents scammers from opening new accounts in your name. It's free and reversible. Contact Equifax, Experian, and TransUnion to freeze your credit.
Register on Do Not Call List
Visit DoNotCall.gov to reduce legitimate telemarketing calls, making it easier to identify suspicious calls.
Use Call Blocking Apps
Apps like Nomorobo, Truecaller, or your phone carrier's spam blocking service can filter known scam numbers.
Step 6: What to Do If You've Been Scammed
Time is critical. Follow these steps immediately:
Contact Your Financial Institutions
Call your bank and credit card companies to freeze accounts and dispute charges. Many banks can reverse fraudulent transactions if caught quickly.
Change All Passwords
Update passwords for email, banking, social media, and any account where you used the same password. Start with email—it's often the key to resetting other accounts.
File Official Reports
- Report to FTC at ReportFraud.ftc.gov
- Report to FBI's Internet Crime Complaint Center
- File a police report (needed for identity theft recovery)
- Report to your state attorney general
Place Fraud Alerts
Contact one of the three credit bureaus to place a fraud alert on your credit report. They'll notify the other two. This makes it harder for scammers to open accounts in your name.
Monitor for Identity Theft
Check your credit reports monthly for the next year. Watch for unauthorized accounts, inquiries, or address changes. Consider identity theft protection services.
Get Help and Support
AARP Fraud Watch Network Helpline: 877-908-3360 (free resource for all, not just AARP members)
FTC Hotline: 1-877-FTC-HELP
These helplines can verify if something is a scam and guide you through recovery steps. You're not alone—trained specialists are available to help.
Step 7: Sharing Knowledge with Family
According to the FTC's Pass It On campaign, talking about scams with family and friends is one of the most effective prevention methods.
How to Start the Conversation
Share your experiences without shame. Try these approaches:
- "I got the strangest call today claiming to be from Social Security. Have you heard about this scam?"
- "I read that scammers are using AI to clone voices now. Maybe we should set up a family code word?"
- "I signed up for credit monitoring. Do you check your credit reports regularly?"
For Adult Children: Have conversations with your parents about scams without being condescending. Focus on how sophisticated modern scams have become—anyone can be fooled. Emphasize that you're sharing information because you care, not because you doubt their abilities.
Key Takeaways
Contact companies directly using official phone numbers or websites—never use contact information from suspicious messages.
Urgency is a scammer's tool. Legitimate businesses give you time to think. Take a breath and verify.
Gift cards, wire transfers, and cryptocurrency are not legitimate payment methods for businesses or government agencies.
Never share passwords, Social Security numbers, or financial details in response to unexpected contacts.
If something feels wrong, it probably is. Hang up, delete, or close the window. You can always verify later.
Reporting helps protect others. Visit consumer.ftc.gov to file reports.
Remember: Knowledge is your strongest defense. Share what you've learned, stay skeptical of unsolicited contacts, and verify before you trust. You have the tools to protect yourself—use them confidently.