Scam Definitions and Prevention Client Guide

Scams don't just target people who are uninformed. They target people who are busy, trusting, and living their lives — which is everyone. The most effective scams work precisely because they're designed to look and feel like something entirely legitimate, whether that's a call from a government agency, a message from a financial institution, a new relationship formed online, or an investment opportunity that arrives at exactly the right moment.

This guide, developed by Schwab Advisor Services, provides clear definitions and telltale warning signs for the seven most prevalent types of financial scams affecting investors today.

Romance, marriage, and sweetheart scams build emotional connections over time before introducing a financial need. Sweepstakes and lottery scams create excitement around a windfall that requires a fee to claim. Government impersonator scams use the authority of agencies like the IRS, Social Security Administration, or Medicare to pressure people into sharing personal information or sending money. Tech or fraud support scams create urgency around a supposed security threat and guide victims into giving remote access to their devices or accounts.

Real estate scams, business email compromise, and investment scams round out the guide — each with the specific patterns and pressure tactics that distinguish them from legitimate communications.

Perhaps most importantly, the guide covers what to do if you've already been targeted — including how to report fraud, how to contain your exposure, and who to contact at each step.

The first step in protecting yourself is knowing what these scams actually look like. Download this guide, share it with family members, and use it as a starting point for conversations with the people in your life who might be vulnerable.