Sharon got the call on a Tuesday afternoon. Someone said they were from her bank. Her account had been “compromised,” and if she didn’t verify her information right away, she could lose access to her money. She almost gave it to them. What stopped her was simple: her real bank had never called her like that before.

That pause saved her. Not everyone gets that pause.

Financial scams don’t hit every community the same way. Black families are targeted more often and lose more money per incident than the national average, based on Federal Trade Commission complaint data. When you understand why that is, and what your rights are, you’re harder to take advantage of.

Why Black Families Are Targeted More Often

Scammers target predictable openings, not random victims. Communities with less generational access to traditional banking, more first-time account holders, and heavier use of cash apps and peer-to-peer services tend to see more fraud attempts. Where trust in big institutions runs lower, scammers step in and pretend to be something more familiar, more helpful, more urgent.

The Consumer Financial Protection Bureau has called this out. Communities that have been historically underserved by mainstream banking report higher exposure to fraud, and when money is taken, it’s less likely to be recovered. That’s the part people don’t say out loud enough.

The Most Common Scams Right Now

• Imposter scams. Someone claims to be your bank, the IRS, or a government office. They create urgency so you act before you can check anything.
• Fake debt collectors. You get a call about a debt you don’t recognize, or already paid, and you’re pushed to settle it immediately to avoid “legal action.”
• Romance and relationship scams. Trust builds slowly, weeks or sometimes months. Then comes the ask, usually through gift cards or wires.
• Data breach follow-up scams. After a company’s data is exposed, scammers use real details to sound legitimate. That’s what makes these calls feel convincing.

Your Rights Under the FTC and CFPB

You have more control here than most people realize. You can ask a debt collector to validate the debt in writing before you pay anything. You’re entitled to one free credit report each year from each of the three bureaus at AnnualCreditReport.com. You can freeze your credit for free, and unfreeze it when you actually need it.

You can report fraud to the FTC at ReportFraud.ftc.gov and to the CFPB at consumerfinance.gov. Those reports don’t just sit there. They help track patterns and push action.

How to Protect Yourself Starting Today

• Don’t give out account numbers, Social Security numbers, or one-time codes to someone who called you.
• Set up alerts on your bank and credit cards so you know when money moves.
• Freeze your credit if you’re not applying for anything soon.
• Have a direct conversation with older relatives. Scammers go after seniors more often, and one short talk now can prevent a major loss later.

Consumer protection isn’t separate from your financial plan. It’s part of it. See how it all connects on the Consumer Protection hub and the Financial Planning section.

Common Mistakes to Avoid

• Trusting caller ID. It can be faked.
• Paying a debt before seeing it in writing.
• Using the same password across multiple accounts.
• Waiting until after a breach to freeze your credit instead of doing it ahead of time.

Frequently Asked Questions

What should I do if I think I’ve been scammed?
Contact your bank right away and ask them to freeze or secure the account. Then file a report at ReportFraud.ftc.gov. Timing matters here, the faster you act, the better chance you have of limiting the damage or recovering funds.

Can scammers really fake a bank’s phone number?
Yes. It’s called caller ID spoofing, and it’s common. A call can look like it’s coming from your bank even when it isn’t. Don’t rely on the name or number on your screen, hang up and call the official number yourself.

Is a credit freeze the same as a credit lock?
Not exactly. A credit freeze is free and protected by federal law. A credit lock is usually part of a paid service and may be quicker to toggle on and off. For most people, a freeze gives you the protection you need.

Do I need to pay for identity theft protection services?
You don’t have to. The core protections, freezing your credit, checking your reports, monitoring your accounts, are available at no cost. Paid services can add convenience, but they don’t give you rights you don’t already have.