Course Catalog / BMU 050 / Lesson 1 of 5
BMU 050
Lesson 1: How scams work (surprise, pressure, payment)
Warm up
1. Think of a strange call, text, or email you got. What made it feel strange?
See the answer
That feeling is a clue. In this lesson you learn to name it.
Why this matters
Scams cost people a lot. The Federal Trade Commission (FTC) is the U.S. agency that tracks scams. It says people reported losing $15.9 billion to fraud in 2025. That is from about 3 million reports. Imposter scams, where someone pretends to be a person or group you trust, were reported most: over 1 million reports and more than $3.5 billion lost. Investment scams cost the most, about $7.9 billion.
Scams work on smart people. They work because they rush you. The good news is that most scams use the same few tricks. In this course you learn the tricks, a safe way to check, and what to do if it happens to you.
Start with what you already do
You already spot tricks. You know a store sign that says "Today only!" wants you to buy before you think.
Common belief: Only careless people fall for scams.
What is actually true: Scammers fake real names and real phone numbers. They make you scared or excited so you act fast. Anyone can be fooled. A plan helps more than being smart.
In this lesson you will
- Name the four signs of a scam from the FTC
- Explain why a scammer wants you to hurry
- Name four ways to pay that scammers ask for
- Point to the signs in a made up message
Key words
- scam
- A trick to get your money or your private information.
- imposter
- Someone who pretends to be a person or group you trust.
- caller ID
- The name and number on your screen. Scammers can fake it.
- gift card
- A store card with money on it. Scammers ask for the numbers on the back.
What this course is and is not
Short explanation
A scam often comes as a surprise. It puts pressure on you to act now. It asks you to pay in a strange way. The FTC lists four signs. If you see even one, stop and check.
Sign 1: They pretend to be someone you know
Scammers say they are from the government, like the IRS or Social Security. Or they say they are your bank, a utility, a store, or a family member. They can fake the name and number on your caller ID. So what you see on the screen may not be real.
Sign 2: They say there is a problem or a prize
They may say you owe money or your account is locked. They may say a family member is in trouble. Or they may say you won a prize, but you must pay a fee first.
Sign 3: They push you to act right now
Scammers want you to act before you think. They may tell you not to hang up. They may threaten arrest or say your account will close today. A real business gives you time.
Sign 4: They tell you to pay in a certain way
They ask for a gift card, a wire transfer, cryptocurrency, or a payment app. Some send you a check and ask you to send part of the money back. The FTC says to never pay someone who insists on these ways. Paying this way is like paying cash. It is hard to get back.
Text version of this figure
- 1. Pretend: They say they are a bank, an agency, or family.
- 2. Problem or prize: You owe money, or you won something.
- 3. Pressure: Act now. Do not hang up.
- 4. Pay a certain way: Gift card, wire, crypto, or app.
- If you see one sign: stop, do not pay, and check with a number you trust.
Worked example: Read a made up message for signs
Here is a made up text. It is not real.
"BANK ALERT: Your account is locked. Call 1 800 555 0100 now or it closes today. A fee of $200 in gift cards unlocks it."
| Part | Model | Why it works |
|---|---|---|
| "BANK ALERT" | Pretends to be your bank | Sign 1. A name you trust is easy to fake. |
| "Your account is locked" | Says there is a problem | Sign 2. Fear makes you rush. |
| "now or it closes today" | Pushes you to hurry | Sign 3. Real banks give you time. |
| "$200 in gift cards" | Strange way to pay | Sign 4. No bank takes gift cards for a fee. |
| What to do | Do not call the number in the text | Call the number on the back of your own card instead. |
Practice: Find the signs
A made up caller says: "This is the Social Security office. Your number was used in a crime. Stay on the line or police will come. Buy a gift card to protect your money." How many of the four signs can you find?
Check your practice: feedback
All four. It pretends to be a government office (1). It names a problem, a crime (2). It pushes you to stay on the line and threatens police (3). It asks for a gift card (4).
What to do: hang up. Do not call back the number on your screen.
Common mistakes
- Trusting the caller ID. Names and numbers can be faked.
- Staying on the line to argue. Hang up. You do not owe a scammer your time.
- Paying a fee to get a prize. A real prize does not cost money to claim.
Try it: Find the signs in one real message
Pick your scenario:
- A text on your phone
- An email in your inbox
- A phone call or voicemail
- Look in your spam folder or your blocked texts for one message. Do not open links.
- Read it and look for the four signs.
- Write the signs you found on paper or in a note.
- Delete the message or mark it as spam.
Do it by: today
Reflect
Which of the four signs would be hardest for you to notice when you are busy?
Check your understanding
1. A call shows your bank's name on the screen. What does that prove?
- Nothing, since caller ID can be faked.
- The call is from your bank.
- The call is safe to answer with your PIN.
See the answer and feedback
A is correct. Right. Scammers can change the name and number you see.
B: Caller ID can be faked. Review Sign 1.
C: Never give your PIN to a caller. Review Sign 1.
2. A message says you won $1,000 but must pay a $50 fee first. Which sign is this?
- A sign that the prize is real.
- A problem or a prize.
- A normal way to claim money.
See the answer and feedback
B is correct. Right. A prize that costs money is a scam sign.
A: Real prizes do not charge a fee. Review Sign 2.
C: Paying to get a prize is not normal. Review Sign 2.
3. Which way to pay is a sign of a scam?
- Paying a bill you expected on the company's own site.
- Using cash at a store you chose.
- Buying a gift card to pay a caller.
See the answer and feedback
C is correct. Right. Gift cards for a caller are a top scam sign.
A: You chose the company and the bill was expected. Review Sign 4.
B: You chose the store and paid in person. Review Sign 4.
Takeaway: four signs
- They pretend to be someone you know
- They say there is a problem or a prize
- They push you to act now
- They ask for a gift card, wire, crypto, or app payment
- One sign is enough to stop and check
Recap
- Scams use surprise, pressure, and a strange way to pay.
- The FTC lists four signs.
- Caller ID can be faked.
- One sign is enough to stop.
You now have: the four signs, and practice finding them in a real message.
Next up
Next you will sort texts, emails, and calls into scam, check first, or likely safe. Go to Lesson 2: Sort texts, emails, and calls. BMU 050 is free. There is no paywall and no fee.
Sources
- FTC testimony to the Joint Economic Committee on the rising scam economy (March 2026): $15.9 billion in reported fraud losses in 2025 (current as of Oct 29, 2026)
- FTC Consumer Advice: How to avoid a scam (Four signs that it's a scam) (current as of Oct 29, 2026)
- CISA: Secure Our World (four core steps: avoid and report phishing, strong passwords, multifactor authentication and a password manager, update software) (current as of Oct 29, 2026)
