Learn your rights to stop debt collection calls and dispute debts you don't owe.
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If you lost money in a payment scam, you are not alone. Consumers often lose more money to scams where they paid with bank transfers or cryptocurrency than all other payment methods combined.
What are the different types of payment scams?
Some of the most common payment scams are:
- Unexpected payment scam: This is when you receive money from a person through check, credit card, or a cash app like Venmo, Zelle, or PayPal.
- Urgent request scam: In this scam, someone messages or calls you, claiming they either sent the money by mistake or sent more than they meant to, and requests that you return all or some of it.
Note:
If the sender actually made a real mistake and they paid by credit card, they can ask for help from their credit card company.
- Refund scam: This is when you send the refund the scammer asks for. Since the original check or payment was fake or fraudulent, the original check bounces or the payment is otherwise invalidated. You have lost not only the funds you returned or used, but also bank fees.
- Stolen funds scam: In this scam, the money comes from a hacked credit card or bank account. If you send it back, you’re actually sending your own money to the scammer.
- Reversal scam: If the original payment was from a stolen or fraudulent account, once the fraud is detected, the bank reverses the stolen funds. You will lose any money you sent as a refund and the scammer walks away with your refund payment.
How do I protect myself from being scammed?
It can feel embarrassing to be scammed, but it is not your fault. Here are some ways you can protect yourself from being scammed:
- Always check that the person sending you money is real and someone you know before accepting money. Check their identity through official channels and don’t use the contact information provided in emails, texts, or letters. It is best to not accept money from new and unknown senders.
- Wait until any payments have completely cleared. It can take several days for a check to be processed by the bank.
- Report suspicious transactions to your bank or payment app.
- Be careful with payment apps. They usually do not offer fraud protection the way credit cards do. Use the in-app features that help check that the payments and users are real and you know them.
What should I do if I was scammed?
Step 1: Stop payment immediately.
If you paid with a bank transfer or check, contact your bank and ask it to stop payment. If you paid with a credit or debit card, contact your credit card or debit card company and file a dispute (also known as a chargeback).
Note:
If you paid with a cash app, it is harder to stop payment. There may be a method in the app to request a refund, but that is unlikely to work if the sender is a scammer. Instead, report the scam to the cash app company and follow its dispute process.
Step 2: Report the scam to ReportFraud.ftc.gov/
The Federal Trade Commission (FTC) will provide information on next steps you should take. The FTC uses individual reports to investigate and bring cases against fraud, scams, and bad business practices, but the FTC does not resolve reports on behalf of individuals.
Step 3: Report the scam to the Colorado Attorney General’s office at stopfraudcolorado.gov/.
Like the FTC, the Colorado Attorney General’s office investigate
s fraud complaints and brings cases against frauds, scams, and bad business practices, but does not pursue cases on behalf of individuals.
Need more help?
If you are low-income, a senior, or a veteran, you may qualify for free legal help from Colorado Legal Services (CLS). To apply or ask if you might qualify, go to the CLS website and find the office that serves your area. If you call or visit, CLS can help you in your native language.
You can get help from the courts. Every judicial district has staff called “Sherlocks” to help people with their legal questions. To find the Sherlock in your county, visit the Judicial Department’s Sherlock webpage.