How to Spot Phone and Text Scams

Scammers are good at what they do. They’ve had years of practice, and they refine their approach constantly. Phone calls and text messages are two of their favorite tools because they’re cheap, scalable, and they catch people off guard.

Here’s what to watch for.

Urgency is the biggest red flag

Almost every scam relies on pressure. They need you to act before you think. Common lines:

• “Your account has been compromised — we need to verify your identity now.”
• “You have a warrant for your arrest. Press 1 to resolve this.”
• “Your package couldn’t be delivered. Click here within 24 hours or it will be returned.”

Real organizations don’t operate this way. The IRS sends letters. Your bank will wait for you to call them back. FedEx will just try again tomorrow.

If someone is pressuring you to act immediately, that’s your cue to slow down.

They already know things about you

A common trick is to open with information they already have — your name, the last four digits of a card number, your address. This makes them seem legitimate. But this data is widely available from past breaches and public records. Knowing your name doesn’t mean they’re your bank.

Caller ID means nothing

Spoofing a phone number is trivial. A call that appears to come from your bank, a government agency, or even a contact in your phone can be completely fabricated. Never trust caller ID as proof of identity.

Common phone scams

The government threat. Someone claims to be from the IRS, Social Security Administration, or law enforcement. They say you owe money or have a legal problem. They want payment via gift cards, wire transfer, or cryptocurrency. No government agency will ever demand payment this way or threaten arrest over the phone.

Scammers also invent agencies that don’t exist. A common one is the “National DMV” — there is no such thing. The DMV is run at the state level. In fact, some state’s dont’ even have DMVs. If someone calls claiming to be from a national-level version of a state agency, it’s fake. The same goes for things like “Federal Utility Commission” or “National Licensing Bureau.” If you’ve never heard of the agency, look it up before engaging. Odds are it doesn’t exist.

The tech support call. “This is Microsoft. We’ve detected a virus on your computer.” They want remote access to your machine. Microsoft, Apple, and Google will never cold-call you about a problem with your device.

The grandparent scam. A caller pretends to be a grandchild or relative in trouble — arrested, in an accident, stranded. They beg you not to tell anyone else and need money wired immediately. Always verify by calling the person directly at a number you already have.

The bank fraud alert. You get a call saying there’s suspicious activity on your account. They ask you to “confirm” your account number, PIN, or password. Your bank already has this information. Hang up and call the number on the back of your card.

The prize or lottery. You’ve won something, but you need to pay a fee or provide bank details to claim it. You didn’t win anything.

Common text scams

Fake delivery notifications. A text says your package can’t be delivered and includes a link. The link goes to a phishing site that looks like USPS, UPS, or FedEx. If you’re expecting a package, go to the carrier’s site directly.

Bank alerts with links. “Unusual activity detected on your account. Verify here: [link].” Your bank may text you alerts, but they won’t include links asking you to log in. Open your banking app or go to the website yourself.

Toll or fine notices. Texts claiming you have an unpaid toll or parking fine, with a link to pay. These are phishing. If you think you might owe a toll, go to the toll authority’s website directly.

Wrong number texts. Someone texts you “by accident” and then tries to strike up a conversation. This often leads to cryptocurrency scams, romance scams, or getting you to click a link. Just ignore it.

Job offer texts. Unsolicited texts offering high-paying remote work. They eventually ask for personal information or an upfront payment for “equipment” or “training.”

General rules

Never give information to someone who contacted you. If your bank calls, hang up and call them back at their official number. This one rule stops most scams.

Don’t click links in texts from unknown numbers. If it might be real, navigate to the website yourself.

Don’t pay anyone in gift cards, cryptocurrency, or wire transfers. Legitimate businesses and agencies don’t use these payment methods for debts or fees. These are chosen by scammers specifically because they’re hard to reverse.

Use your phone’s built-in spam filtering. Both iOS and Android have options to silence unknown callers and filter spam texts. Turn them on.

Report scams. Forward spam texts to 7726 (SPAM). Report phone scams to the FTC at reportfraud.ftc.gov.

When in doubt

Hang up. Delete the text. Look up the real number yourself and call back. The two minutes it takes to verify could save you thousands.