Recognizing and Preventing Financial Fraud and Scams
Protect What You Have Built
Welcome back
How today works
From Session 2
Save for soon, invest for later · risk and return travel together · high return with no risk is a scam. Today we look at every kind of scam.
No judgment here
If it has happened to you or someone you love, you are in the right room. Nothing is recorded. You never have to share a story.
The series · five sessions
One path, five steps
- 1Emergency Savings & BudgetingBuild a safety net
- 2Saving & Investing for the FutureGrow assets
- You are here3Fraud & ScamsProtect money
- 4Consumer Rights in the U.S.Understand rights
- 5Retirement BasicsPlan for retirement
In every session we practice three questions
Opening question · private, not recorded
This year, did a call, text or message ask you for money or details in a way that felt wrong?
Almost every hand in this room could go up.
Scammers contact everyone. Being contacted is not a failure. Knowing what to do is the skill — and it takes one hour to learn.
That is normal now. Today you get a short test that works on all of them.
Once is enough to learn the pattern. You will recognise the next one faster.
Then you are already the person they will call for advice. Today prepares you.
Good — and “not noticed” is the point. The best scams do not feel wrong at first.
Honest. By the end of today, “not sure” becomes “let me check”.
Think about your own answer. You do not need to say it out loud.
Today’s goals
By the end of today, you can…
Spot the four red flags of a scam
Recognise the scams that target newcomers
Use “Stop · Check · Talk” before sending anything
Protect your accounts, phone and identity
Know what to do — and where to report — if it happens
A scam is a trick to take your money or your information. Fraud is the same thing in legal language. Both are crimes — done to you, not by you.
Part 1 · It is not about being smart
Why newcomers are targeted
New systems
You do not yet know how the tax office or immigration really contacts people.
Language
Official-sounding English is hard to judge. Scammers also speak your language.
Fear about status
Threats about immigration, police or deportation feel real — and make people pay fast.
Family far away
An “emergency” in another country is hard to check quickly.
Community trust
Scammers join your chat groups, your place of worship, your neighborhood.
It is not about being smart. It is about being new. Scammers are professionals.
Part 1 · One test for every scam
The four red flags
Urgency
“Act now.” “Today only.” “Your case will be cancelled in 2 hours.” Real organizations can wait until tomorrow.
Secrecy
“Don’t tell your family.” “Don’t hang up.” “Keep this between us.” Honest people never need you to be alone.
Unusual payment
Gift cards. Crypto. Wire transfer. Cash by courier. A payment app to a stranger. No government or real company asks for these.
Too good to be true
A prize you did not enter. A job with no interview. “Guaranteed” returns. A stranger who loves you in a week.
One red flag: slow down. Two red flags: it is a scam.
Part 1 · What to do, every time
Stop. Check. Talk.
Stop
Hang up. Do not click. Do not reply. Do not pay. Nothing real is lost by waiting an hour. Scams only work when you hurry.
Check
Call the number on your card or type the official website yourself. Never use a number or link the message gave you.
Talk
Tell one person before you send anything — family, a friend, House of Friendship staff. Scammers hate a second opinion. That is why they say “don’t tell anyone.”
Say it out loud with the room: Stop. Check. Talk. It works on calls, texts, emails, messages, visitors at the door — everything.
Part 2 · Common scams
Scams that pretend to be the government
What they say
- “Immigration. There is a problem with your case. Pay today or it is cancelled.”
- “Tax office. You owe money. Pay now or police will come.”
- “Social Security. Your number was used in a crime. Buy gift cards to clear it.”
- “Your electricity will be cut in 30 minutes unless you pay by phone.”
What is true
- Government agencies do not call or text to demand immediate payment.
- They never take gift cards, crypto or wires — and never threaten arrest by phone.
- The tax office writes a letter first. Immigration news comes through your official account or your lawyer.
- Only a licensed attorney or DOJ-accredited representative may give immigration legal advice — not a “notario.”
Fear about status is the lever. A call about your case: hang up, check with your lawyer or the official site you type yourself. A real agency is still there tomorrow.
Part 2 · Common scams
Scams that come through your phone and screen
Fake links
“Your package is held — pay $1.99.” “Your account is locked — verify here.” The link steals your password.
Fake bank calls
“This is your bank’s fraud team. Read me the code we just sent.” A one-time code is for you only. No bank asks for it.
Tech support pop-ups
“Your computer has a virus — call this number.” They ask to control your screen. Close the window. Restart.
“Wrong number” texts
A stranger texts by “mistake”, chats for weeks, then shares an “investment.” The friendship is the trap.
Safe habits: do not click links in texts or emails — open the app or type the website yourself · never read a code to anyone · let unknown callers go to voicemail · a real bank will let you hang up and call back the number on your card.
Part 2 · Common scams
Scams that use your heart
Family emergency
“Grandma, I’m in jail / in the hospital. Send money now. Don’t tell Mom.” Voices can now be copied by computer — it can sound exactly like your grandchild.
Do: hang up, call the family member on the number you already have. Agree a family safe word tonight.
Romance
An online partner — kind, attentive, far away — who after weeks needs money for a ticket, a hospital, customs, or a “business.” They never meet on video.
Do: never send money to someone you have not met in person. Talk to a friend about the relationship.
Charity and community
After a disaster back home, a “collection” by message. Or a member of your community group with a “sure” business who needs everyone’s savings.
Do: give through organizations you can check. Trust in your community is precious — that is exactly why it is used.
Part 2 · Common scams
Scams that use your hopes
Job offers
Hired with no interview. Pay for “training” or a laptop. Cash a check and send part back. A real job never asks you to pay.
Receiving money and sending it on for a stranger can make you the criminal.
Rentals
A great apartment, a landlord “abroad”, a deposit by wire before you see it or sign anything.
Do: see it in person, meet the person, get a written lease before any money.
Investment and crypto
A “mentor” in a chat group. A small win first. Then bigger deposits. Then you cannot withdraw. “Guaranteed” and “no risk” are the flags.
Session 2: risk and return travel together.
Prizes and lotteries
“You won!” — a lottery you never entered. Pay a “fee” or “tax” to collect.
Real prizes never cost money to receive.
Count the red flags: a job with no interview (too good) that needs a payment today (urgency, unusual payment). Two flags = scam.
Activity · everyone decides together
Scam, real, or check first?
Text: “USPS: package on hold. Pay a $1.99 fee here: [link]”
Call: “Social Security. Your number was used in a crime. Pay with gift cards.”
Message: “I’m abroad. Wire the $1,200 deposit; I’ll mail the keys.”
WhatsApp: “Sister, my phone broke, this is my new number. I need $500 today.”
Your bank app asks: “Did you spend $52 at a gas station?” Yes / No
A letter by mail from the tax office with a notice number, asking you to call.
Part 3 · Simple habits that stop most scams
Protect your accounts and identity
Two-step verification
On for email, bank and phone accounts. A thief with your password still cannot get in.
Long, different passwords
A sentence you remember; different for email and bank.
Never share codes
A one-time code is the key to your account. Nobody honest asks for it.
Check statements weekly
Report any charge you do not know, fast. Session 4 covers disputes.
Freeze your credit — free
At all three credit bureaus, by law. Nobody can open a loan in your name. Unfreeze when you need to.
Guard your numbers
Social Security or ITIN card stays at home. Shred papers with numbers. Share your number only when you know why.
Pick one tonight. Two-step verification on email is the best first choice — email resets every other password.
Part 3 · The people scammers reach through you
Protect your family
Elders
- Explain the “family emergency” call — and that a real emergency can wait ten minutes for a call back.
- Agree a family safe word that a caller must say.
- “Before you pay anyone, call me first.” Make it a rule, not a lecture.
Teens and children
- “Mentors” and “trading groups” on social apps target 15–25 year olds.
- Selling their bank account or ID “for easy money” is a crime that follows them.
- Children’s Social Security numbers are stolen too — a credit freeze can protect a child.
If a message went to fifty people, it is not advice for you.
Part 4 · Nobody is the first
If it happens to you or someone you love
- Stop all contact. Never send “one more” payment to get money back — that is a second scam.
- Call your bank or card company now — the number on your card. Fast reports can stop or reverse some payments.
- Change passwords, turn on two-step. Email first.
- Report it. Free, protects the next person, and creates a record you may need.
- Tell someone. Shame is the scammer’s last tool. Telling breaks it.
Where to report (U.S., free)
- ReportFraud.ftc.gov — any scam
- IdentityTheft.gov — if your numbers or documents were used; a recovery plan
- ic3.gov — internet and online crime (FBI)
- Local police — for a report number, often needed by the bank
- House of Friendship staff — help in your language; legal-aid referrals
You are not the first. It is not your fault. It can be reported.
Case study · a fictional family
One family’s week: Joseph, Maria and Paolo
Joseph and Maria have been in the U.S. for two years with their son Paolo, 16, and Maria’s mother, Rosa. Maria is waiting on an immigration case. Joseph is looking for a better job. Paolo has a phone and a lot of group chats. In one week, three messages arrive.
Maria’s call
“This is immigration. There is a problem with your case. Pay $900 in gift cards within two hours or it will be cancelled. Do not hang up. Do not tell anyone.”
Joseph’s job offer
A text: “Warehouse supervisor, $28 an hour, start Monday. Send $250 for the background check today to hold your place.” No interview.
Paolo’s mentor
In a chat group, a “mentor” shows screenshots: $200 became $2,000 in a week. “Guaranteed. Join today, only five spots.” Paolo has $300 saved.
Count the red flags in each. Then: what should each of them do first?
Case study · the decision
Maria is on the phone. Her case matters more than anything. What should she do first?
The scam’s goal
$900 gone, and the caller will call again for “the next fee.” Immigration never takes gift cards or cancels a case by phone.
Stop. Check. Talk.
Hang up (Stop). Check her case through her lawyer or the website she types herself (Check). Tell Joseph (Talk). The case is exactly as it was this morning.
Better than paying — but still their number
Scammers have badge numbers and call-back lines ready. Only a number you find yourself counts as a check.
Half of $900 is still $450 gone
Any payment proves you can be pushed. They will push harder. Nothing real is lost by paying nothing.
Same answer for Joseph and Paolo: a real job never asks for money; a guaranteed return does not exist. Stop. Check. Talk — and Paolo talks to his parents before the $300 moves.
Take-home action · 5 minutes
Before you leave today
Turn on two-step verification
On your email first, then your bank. Within 7 days.
Talk to one person
An elder or a teen. Explain the family-emergency call and agree a safe word.
Make your “scam card”
Your bank’s number from your card, and the reporting sites. Keep it by the phone. Page 2 of your worksheet.
Questions · 5–10 minutes
Questions?
What is the decision?
Today: pay or check? Click or type it myself? Keep it secret or tell someone?
What are the trade-offs?
An hour of delay vs. a year of savings. A little embarrassment vs. a lot of money.
What is my next action?
Stop. Check. Talk. And one protection turned on this week.
Next session
Understanding Consumer Rights in the United States
Step 4 of 5 · Understand rights