Frauds and Scams

Frauds and Scams


The Grandchild Scam

How the scam works: A person will call your home and when you answer the phone will address you as grandma or grandpa. The grandparent often will respond by saying a grandchild’s name such as “Is that you Jenny?” The caller will then agree to being that grandchild and say that he or she is in some sort of trouble such as stranded in a foreign country or in jail and in need of having money wired to them. In addition, the caller will often request the grandparent to keep this situation a secret from his or her parents.

What you should do: If you get this type of a phone call, ask the caller to identify themselves. Request the caller give you a phone number where you can call the back. Before going any further you should try to contact your grandchild or their parents to see whether someone is really in need of help. Never send money or give any information until you have confirmed there is a real problem with your grandchild.

The Lottery Scam

How the scam works: You will receive a letter or an email stating that you have won a lottery most likely in another country. In order to claim your winnings, the letter will state that you need to pay the taxes on the winnings. Often times the letter will include a check for a few thousand dollars with instructions for you to deposit the check then wire, Money Gram, or Western Union the money back to pay these taxes. Unfortunately what happens is the money is wired back out per the instructions and then the check is returned against your bank account as it is a counterfeit item.

What you should do: The first step is to recall whether you’ve entered a lottery in another country. If not, do not call the number in the letter or send money as directed.

The Bank Account Scam

How the scam works: A person will call you posing as a bank representative. The caller will indicate there is a problem of some sort with your account. To ‘fix’ the problem the caller will ask for you to provide your account number and possibly other personal information.

What you should do: If you get this type of call you should ask the caller’s name, phone number and the information they are requesting, and then end the call. Next you should contact your bank using a published phone number to verify whether there is an issue with your account. Citizens First Bank will never call you asking for your account number or your personal information.

eBay or Craigslist Scam

How the scam works: You have listed an article for sale on E-Bay or Craig’s List. Someone will contact you and offer to buy the article from you but will state the shipment of said item will be handled by a third party. The buyer will tell you they are sending you a check in the mail for an amount much higher than the cost of the article they are purchasing and ask that you deposit the check and then wire, Money Gram or Western Union the difference to their agent that will handle the shipping. As with the lottery scam, the check they send you will be counterfeit and will be charged back against your account if you deposit it leaving you with a large loss if you have already wired the money out.

What you should do: Never agree to accept more than the asking price for an item you are selling on the internet. Only accept a secure method of payment from buyers. If you accept checks (even cashier’s checks) deposit the items and wait for the funds to clear. Do not ship the article until you know you have clear funds.

Romance Scam

How the scam works:  You join an online dating site and you’re contacted online by someone who appears interested in you. He or she may have a profile you can read or a picture that is e-mailed to you. For some time, you may chat back and forth, forming a connection. You may even be sent flowers or other gifts. But eventually there will be some type of crisis and, your new-found “friend” will ask you for money. If you do send money, be assured the requests won’t stop there. There will be more hardships that only you can alleviate.

Recognizing an Online Dating Scam Artist

Your online “date” may only be interested in your money if he or she:

  • Presses you to leave the dating website you met through and to communicate using personal e-mail or instant messaging;
  • Professes instant feelings of love;
  • Sends you a photograph of himself or herself that looks like something from a glamour magazine;
  • Claims to be from the U.S. and is traveling or working overseas;
  • Makes plans to visit you but is then unable to do so because of a tragic event; or
  • Asks for money for a variety of reasons (travel, medical emergencies, hotel bills, hospitals bills for child or other relative, visas or other official documents, losses from a financial setback or crime victimization).

What you should do: Stick to online dating websites with nationally known reputations and keep these tips in mind when visiting these sites.

Refund Scam

How the scam works: The scammers may say they’re with a government agency, a consumer advocacy group, a law firm, a charity, or some other organization. Some even say they’re with the fake company that took your money, and they’re offering refunds to dissatisfied customers. They may say they’re holding money for you, offer to file complaint paperwork with government agencies on your behalf, or claim they can get your name at the top of a list for reimbursement. Whatever they say, it’s a lie, designed to gain your trust — and your money. You’re told you need to pay. The scammers promise to recover your money or merchandise, but they need you to pay them or give them financial information first. They may call the upfront money a “retainer fee,” “processing fee,” “administrative charge,” “tax,” “shipment and handling charge,” or even a “donation” to a charity they name. Or, they may say they need your checking, debit, or other financial account number so they can deposit a refund directly into your account. If you give them the requested fee or account information, your money will disappear.
What you should do: Never pay upfront for a refund or help with a refund. That means, never give your bank account, credit card, or other payment information to get a refund. Anyone who asks for your financial information or for upfront fees is a scammer. Know that only scammers will tell you to pay by gift card, cryptocurrency, or wire transfer through companies like Western Union or MoneyGram. Anyone who asks you to pay in any of these ways is a scammer.

Be suspicious if you get a supposed refund check for more money than you lost. Some scammers will say there was an error and tell you to cash the check, keep the amount you’re due, and return the balance. It can take weeks for a bank to discover that a check it cleared was a fake. In the meantime, if you use the money, even to return some to the scammer, the bank will want you to repay that money.

Pay in Advance for Work/Services

How the scam works: Someone comes to your home unsolicited and offers to perform some type of work for you, possibly yard work, landscaping, painting or other home maintenance but they tell you they need all or part of their fee up front for materials etc.  You agree to have them perform the work and advance them the agreed amount of money. They leave your home without performing the work and never return.

Another version of this scam is you receive an unsolicited phone call from someone claiming to be from a computer company such as Microsoft. The caller will inform you that you have a problem with your computer and will ask you for information about your computer which will allow them access to repair the issue. Of course there is always a large fee involved to perform this service. Once you have given the caller access to your computer they may have access to any personal information you have stored on your computer and may be able to install mal-ware that essentially allows them to spy on everything you do on the computer. Also, if have given the caller your debit or credit card information for the charges and are at risk for other unauthorized charges.

What you should do: Use caution doing business with contractors who contact you to perform unsolicited maintenance.  NEVER give your personal information such as computer IP address, debit or credit card information to an unsolicited caller. If you do have issues with your computer the manufacturer will not contact you by phone asking for access to your PC or for money to perform repairs. ALWAYS use a reputable computer repair business to perform any repairs or upgrades.

Secret Federal Reserve Bank Account Scam

How the Scam Works: You receive an email, text, phone call or see a video on social media describing how you can pay your bills using a “Secret Account” or “Social Security Trust Account” and routing numbers at Federal Reserve Banks. All you have to do is provide your personal information, like your social security number in exchange for these account numbers. What do you really get? Your personal information stolen then sold or used to commit fraud like ‘Identity Theft’.

Remember, only banks can bank at the Federal Reserve, not people!  What will happen if you try to use this ‘secret’ account?  The payment will be denied by the Federal Reserve because you don’t have an account there.  Your bill will go unpaid and you will be notified that you still owe the money and probably have a late fee or penalty added to the amount you owe.

What you should do: Never give your credit card, bank account or Social Security number to anyone who calls or emails and asks for this information - no matter who they are.  Report any attempts to solicit this type of activity to the FTC

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Contact the Federal Trade Commission (FTC) by telephone at (877) FTC-HELP or via the FTC’s website at and/or the Federal Bureau of Investigation Internet Crime Complaint Center (to report scams that may have originated via the Internet) at their website to file complaints.

If correspondence is received via the US Postal Service, contact the US Postal Inspection Service by telephone at (888) 877-7644; by mail at US Postal Inspection Service, Office of Inspector General, Operations Support Group, 222 S. Riverside Plaza, Ste. 1250, Chicago, IL 60606-6100 or via the online complaint form at

To find trustworthy businesses and to make wise decisions when choosing a company to perform maintenance utilize the Better Business Bureau’s (BBB) website  Visit for information on how to file complaints.