Employment and Impersonation Scams

Scams are constantly evolving, and unfortunately, some of the most convincing ones involve either how you pay or where you invest.

We want to help you stay alert to two common types of fraud: payment scams and investment scams. A few minutes of awareness can go a long way in protecting your finances.

What are these scams?

Payment scams often involve someone urging you to send money in an unusual way, make a purchase with the promise of compensation, or use bank account information provided by someone else to make a payment. These scams are designed to create confusion and move money quickly before you have time to pause and verify.

Investment scams typically begin with an unexpected “opportunity” that promises high returns, fast profits, or a chance to get rich quickly. The pitch may sound exciting and exclusive, but the goal is usually to pressure you into handing over money before you’ve had time to ask questions or do your homework.

How can you spot them?

Be cautious if you notice any of these warning signs:

• You are being pressured to act quickly
• The offer sounds too good to be true
• Someone asks you to use a payment method you do not normally use or understand
  • This can include gift cards, wire transfers, payment apps, or cryptocy
• You are promised high or guaranteed returns with little or no risk
• The person wants you to keep the transaction private or avoid talking to your advisor, bank, or family members

How can you avoid them?

A few simple habits can help protect you:

• Slow down and do not let anyone rush you
• Be skeptical of offers involving guaranteed returns or quick wealth
• Never send money using unfamiliar payment methods just because someone tells you to
• Do not accept bank account information from someone else and use it to make a payment on their behalf
• Verify investment opportunities independently before acting

When in doubt, pause and talk with a trusted professional before sending money or investing.

What should you do if you think you’ve been scammed?

If you believe you may have responded to a scam:

• Stop communicating with the person immediately
• Contact your bank, credit card company, or payment provider right away
• Change passwords if personal or financial information may have been shared
• Keep records of texts, emails, receipts, and account activity
• Report the incident to the appropriate authorities

You can also explore the AARP Scam-Tracking Map to see scam activity and reports from around the country.

Scammers rely on urgency, emotion, and confusion. The best defense is often the simplest one: pause before you pay, and ask questions before you invest.