Are you being targeted by an advance fee scam? These scams are becoming more and more common, and they can be very costly for victims. If you’re not sure if you are being targeted, keep reading. We will discuss the top warning signs that indicate you are involved in an advance fee scam. We will also provide some tips on how to protect yourself from these scams.

What is an Advance Fee Scam?

Advance fee scams are a type of financial scam in which the scammer offers to provide goods, services or funds in exchange for an upfront payment. The scammer may request payment in the form of gift cards, wire transfer, pre-loaded debit cards or cryptocurrency. However, once you make the initial payment, the scammer disappears and they leave you with nothing. These scams can be very difficult to spot, as they often involve seemingly legitimate businesses or individuals. 

Advance Fee Scam Warning Signs

If you are contacted by someone asking you to pay a fee in order to receive goods, services or funds, there are some red flags to watch out for that may indicate that you are being scammed, such as:

• The offer seems too good to be true.
• The person is pressuring you to act quickly.
• You’re being asked to pay using gift cards, cryptocurrency, wire transfer or prepaid debit cards.
• The person you’re dealing with gives little to no information about themselves.
• They are using threatening and urgent language.
• They request personal information—such as your full name, address, phone number, or banking information—under the guise of needing it for shipping or payment purposes.

Below, you will find a few examples of the tactics used by scammers to commit this type of cybercrime:

• Shipping Fee Scams: Scammers pose as online sellers who run social media ads or message you directly for a limited time sale in which their product is available free of charge, you just have to pay for shipping. Once you pay shipping, the item never arrives and the scammers disappear with your money and personal information.
• “Lottery” or “Prize” Scams: You are contacted and told that you have won a large sum of money in a lottery or contest. However, to collect your prize, you must first pay various fees and taxes. Once you pay the fees or taxes, the scammer disappears with your money.
• Inheritance Scams: You are told that you are the beneficiary of an inheritance, but you must pay a fee in order to receive the money. Once you pay the fee, the scammer disappears with your money.
• Job Offer Scams: You are promised a high-paying job, but you must pay a fee in order to secure the position. In some cases, the scammer will ask you to purchase equipment and then send it to them for set up with the promise of reimbursing you on your first paycheck. Once you send the equipment, the scammer disappears.
• Cryptocurrency Scams: You are asked to pay fees using cryptocurrency in exchange for a larger sum of cryptocurrency. Once the scammer receives your payment, they disappear.

This may seem overwhelming, but there are some things you can do to protect yourself from advance fee scams. First, never give out personal information, such as your Social Security number, credit card number or bank account information, to someone you don’t know. Second, be very suspicious of anyone who contacts you and asks for money. And finally, contact the Federal Trade Commission and file a complaint.

Advance fee scams are becoming more and more common, but by being aware of the warning signs, you can protect yourself from becoming a victim.