If it seems like you’re always seeing news headlines about scams, it’s probably not your imagination; reported losses from fraud reached an all-time high last year. Federal Trade Commission (FTC) data shows that consumers reported being swindled out of a whopping $10 billion to scammers — $1 billion more than 2022.

To help you stay vigilant, we’ve compiled a snapshot of eight prevalent scams, including how to spot them and what to do to make sure your funds are protected.

1. Sweetheart scams

How they work: Scammers capitalize on the popularity of dating sites or apps by setting up a fake profile to establishing online relationships with victims. Once they gain your friendship and confidence, they encourage you to get in on a so-called investment opportunity or they ask for money (say, for an emergency or to come visit you) or private, sensitive information such as where you work or live.

What to do: Act on your instincts. If you feel like this person is coming on too strong — asking personal questions, pushing an investment opportunity or requesting money, for example —  notify the dating site or app and hit delete on their profile. 

2. Grandparent cons

How they work: Someone posing as a relative sends an email or calls you saying he or she is in trouble and needs you to send money right away. In some cases, the voice on the line may sound just like your relative if the scammer has tapped into the rising trend of using an AI  voice cloning program. The scammer asks you not to tell anyone they’re in a crisis, such as a car accident or arrest, and directs you to a neighborhood location to transfer or send the funds. 

What to do: No matter how convincing it sounds, don't fall for this tale of woe. Notify police immediately and provide them with the details for wiring the money, if you have it. Additionally, alert the individual who the scammer was impersonating and let other friends or family members know that this took place.

3. IRS frauds

How they work: Beware of calls, letters and emails from fake IRS agents about bogus tax bills, instant windfalls or exemptions from filing or paying taxes. They use the authority of the agency to scare their victims into verifying personal information, such as your Social Security number or birth date, or providing or confirming financial information like your bank's routing number or a credit card number.

What to do: Hang up if you receive such a phone call. The IRS will never ask for this information or for any payment over the phone or in an email. If you receive a letter from the IRS, do not call the number on the letter. Instead, do a quick online search for the phone number of the IRS, and call that one to find out if the letter is valid.

4. Telephone scams

How they work: Scammers call, selling fake products or pretending to be customer service representatives. What they're really after is your financial and personal information. They're masters at making conversation and will try to keep you on the phone to win your trust. (In fact, a recent FTC report cited that telephone scams make up the highest per-person fraud loss.)  

What to do: Hang up immediately. Unless you initiate the call to a trusted company, do not buy anything over the phone. Consider placing your number on the Do Not Call Registry. Better yet, if you don’t recognize the number, let the call go to voicemail. If the caller is legitimate, they’ll leave a message. 

5. Lottery/Sweepstakes hoaxes

How they work: Someone contacts you about winning the lottery or a sweepstakes. And, to claim the prize, the caller asks you to pay a processing fee by sending money, paying with credit card or debit card from your checking account. The caller may also ask you to confirm personal information like your credit card account numbers, birth date or Social Security number.

What to do: Be on alert — the FTC reported that email is the top way scammers contact potential victims. Keep in mind that legitimate promotions never ask you to pay to receive a prize. If you receive an email that seems off, report this to your local authorities or to the FTC at ReportFraud.ftc.gov. 

6. Email/Text ploys

How they work: These scams, also known as phishing scams, inform you that a company’s website has been hacked or that the company needs to update your information. You get directed to a fake website that looks official and very similar to the real one and are asked to enter your password or re-enter personal information.

What to do: Only click on links or open attachments within emails from senders you know. When in doubt, contact the company directly using the phone number on a statement or on their website. 

7. Fake fundraisers

How they work: Scammers know that people are particularly generous around the holidays or when natural disasters or other global crises happen, so they pose as representatives with a charity or other organization seeking donations. They typically ask that you give money by using a credit card or a direct debit from your checking account. They don't accept mail-in donations, citing that the cause is urgent and needs your immediate attention.

What to do: Be certain you are interfacing with a recognized charity when donating over the phone or online, whether it's to police organizations or a cancer-fighting cause. To be on the safe side, consider looking up the group's physical address and mailing your donations directly. It’s also helpful to review the FTC’s guidelines for donating wisely.

8. Delivery gimmicks

How they work: Online shopping has increased the last few years and scammers have found ways to capitalize on that. They’ll send an email, call or leave a tag at your door about a missed package. Instructions to receive the package may include having to open a link and enter personal information or verifying account or credit card information with an operator. 

What to do:  Avoid clicking on links from senders you don’t recognize or making payments online or over the phone — legitimate delivery services will not require giving personal financial information. 

Ultimately, if you do become a victim of a scam, don't feel ashamed. Report it to your local police and notify your bank and credit card companies immediately. And be sure to alert family and friends so they don't fall prey, too. For more information about scams and scam prevention, visit citi.com/fraudprevention and the FTC’s Scam Awareness page. 

--With additional reporting from Life and Money by Citi editors