FRAUD PREVENTION GUIDE AND PLATFORM RISKS All rights reserved. 2021, Fiado, Inc. Last revised 24 March 2025 – 12:05 AM ** This Is Generally Available Information, Presented Here for Your Benefit, But Is Not Legal Advice. The Information Here Is Subject to Change at Any Time and Fiado, Inc. Does Not Warrant That It Is Current. ** |
FRAUD AWARENESS: At Fiado, protecting customers is a priority. It is our goal to educate our customers on ways to safeguard their money and personal information and avoid becoming a victim of fraud. We believe that educating our customers about fraud is important so that they can take action to protect themselves. To educate yourself on the most common types of consumer scams, please see section below Types of Fraud/Scams. Please keep in mind that new types of fraud scams pop up every day. Fraudsters are constantly creating new ways to defraud consumers. So, it’s important to remember to always use common sense when sending money and using prepaid cards. |
Fraud Prevention: The number one rule in fraud prevention is to “know the person you are dealing with”. Send money only to people who are known to you. Never send money or give your prepaid card details to a stranger or someone you do not know personally. A fraudster’s goal is to trick you into giving them money which you won’t be able to recover from them. The best way to stop them is to learn how they might try to trick you. That is why Fiado is committed to educating our customers on the different types of consumer fraud/scams to prevent them from becoming victims. Remember that most consumer fraud starts with contact from a stranger. Protect yourself from being scammed by never sending money to someone you don’t know or have a legitimate business relationship with. |
Types of Fraud/Scams Below are some of the common types of frauds/scams that you should be aware of: |
Identity Theft |
Identity thieves use stolen personal information (e.g., Social Security numbers, ID numbers, bank account information, credit card numbers, etc.) to pose as another individual. They may use this information to access their victim’s accounts and spend or withdraw funds, or to borrow or receive money from others using the name of their victim; in that case the thief receives money or goods and the victim is held responsible. Please see below some common identity theft red flags. |
Clues That Someone Has Stolen Your Information
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Unfortunately, identity theft happens. But there are certain steps you can take to help keep your personal information from falling into the wrong hands. The following are ways to keep tabs on your identity and personal information to minimize your risk of becoming a victim of identity theft: |
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For more information and tips on how to detect and prevent identity theft, please visit www.consumer.ftc.gov. To report identity theft, go to www.IdentityTheft.gov for instructions and information on how to file a report. |
IRS/Tax extortion scams |
In this type of scam, typically the victim is contacted by someone claiming to be from a governmental agency saying that money is owed for taxes, and it must be paid immediately to avoid arrest, deportation, or suspension of driver’s license/passport. The victim is instructed to send a money transfer (for example, by Western Union), money order, or pre-loaded debit cards to pay the taxes. Government agencies will never demand immediate payment or call about taxes without first having mailed a bill, and they will never demand payment in money orders, money transfers, or prepaid debit cards. |
Even though these calls may have a Washington, D.C. area code or misleading information on caller ID, rest assured that any “government employee” contacting you and demanding an immediate payment or threatening you is a scammer. |
Government Settlement/Refund scams |
In this type of scam, typically the victim receives a call from someone claiming to work with a consumer protection agency in the government, such as the Federal Trade Commission (FTC) or Consumer Financial Protection Bureau (CFPB), or from an international organization (for example, the United Nations), or law enforcement agency (for example the FBI or Interpol). They tell the victim that they have been identified as having been affected by organized crime, by a corrupt government, or a corporation found to have engaged in illegal activities. The scammers promise to help the victim get a share of a settlement or a refund from the agency. This is a scam. Never send money or provide bank account numbers and other sensitive information to those promising you refunds. None of those organizations make outgoing phone calls to contact individuals to arrange those payments, they don’t ask members of the public to provide banking or sensitive information, they don’t ask you to send money, and refunds and settlements will be sent by check. Even if the Caller ID says the name of an organization you recognize or trust, be skeptical. Scammers will use technology which can display legitimate numbers which trick you into responding. |
Charity/Crowdfunding scam |
In a typical charity scam, the victim is often contacted by someone asking for a charitable donation to be sent by money transfer to an individual to help victims of a disaster or emergency (for example, a flood, cyclone, or earthquake) or an ongoing charitable effort (for example, support for children living in poverty). Legitimate charity organizations will never ask for donations to be sent to an individual. |
Crowdfunding scams are similar to charity scams; fraudsters set up a crowdfunding campaign, typically to help an individual or a family facing financial hardship due to some crisis in their lives (e.g., facing homelessness from loss of income or from a fire, facing devastating medical conditions and expenses, etc.). It’s very easy to create such a campaign, with very little requirement to prove the truth behind it. If you come across a crowdfunding campaign that moves you to donate, you should try to verify the truth of the circumstances: if it relates to circumstances that might have been reported in local news, try searching for those reports; if it relates to people in an identifiable community, do an internet search for their names and that community. Regardless of what you find, you should always be careful about giving to a campaign if you don’t personally know anyone involved in it, either the beneficiaries or the person creating the campaign. |
You can always choose legitimate ways to provide support to help people impacted by personal crises, or by disasters such as floods, earthquakes, fires, other natural disasters, or even man-made disasters. If you want to make a donation, give in a way that you have used before or through a trusted organization or business where you fully understand how the funds are being collected and used. And make your donations by contacting the organization or business yourself. It is important to never send funds to someone you do not know. |
Lottery/sweepstakes |
This type of scam has been around for a long time and continues to be used to defraud people. Typically, the victim is notified that they are a winner in a lottery or sweepstakes, sometimes in foreign countries or sponsored by multinational companies or wealthy individuals, and often in lotteries or sweepstakes in which the victim never entered, and that all they need to do in order to receive their winnings is to pay some fees or taxes in advance. Be aware that if you receive a notice about winning a lottery, no matter how official it looks, and are required to pay a fee to claim your winnings – this is a scam. |
Legitimate lottery or sweepstakes never require people to pay money up front in order to collect their winnings. While you might have tax obligations related to your winnings, the most that will be asked of you is to sign a document disclosing your winnings to the IRS or stating that you are aware of your obligations and promise to pay whatever taxes may become due after you receive your prize. |
Internet Purchase scam |
The victim sends money for the purchase of item ordered online (e.g., pets, cars). Items are often advertised on Craigslist, eBay, Mercado Libre, etc. After the money is sent, the victim never receives the merchandise. Have you found something online that interests you – a puppy, a car, an apartment for rent or any item for sale? Does the price for the item seem to be too good to be true and are you being asked to pay for the item through a money transfer? Unfortunately, this is a scam. Do not send money for the item to the seller. They may even send you a letter or e-mail of authentication telling you that you have purchased the item but need to wire funds first. Do not send the money. It is a scam. You will receive no merchandise. Once money is wired and received it cannot be recovered and unfortunately you will have lost any money transferred. |
This is common even in online marketplaces (such as you might see on social media, with posts that are actually paid advertising). Be especially cautious if the seller has a seemingly nonsensical name, if their website seems poorly designed, if the seller is poorly reviewed or has few or no online reviews at all (don’t rely on positive reviews on the seller’s own website – even if real, the seller is only going to post positive reviews, and even if some customer reviews are negative, the positive ones might be from friends or family of the fraudsters, or from the fraudsters themselves, using fake accounts). |
Buying a vehicle |
Have you found a great vehicle online or in an advertisement with a price too good to be true? Are you being asked to send the down payment through a money transfer? Unfortunately, it’s a scam. Do not send money for the vehicle to the seller or a payments representative. The scammer may try to convince you to pay through money transfer to avoid sales tax and get a great price. They may even send you a letter or e-mail of authentication telling you that you have purchased the item, but in order to deliver it you need to wire funds first. You will not receive a car or truck. Once money is wired and received, it cannot be recovered and, unfortunately, you will have lost any money transferred. |
Emergency scam |
Did you receive a phone call from a grandchild or a family member? Or a “lawyer” or “police officer” suggesting they are with your family member? Are they in despair because they have been detained? Have they been in a car accident? Are they asking for money to pay fines or for car repair? Did a relative call because they need money for a family member in medical need or for medicine? This is a scam! Senior citizens are especially vulnerable to these scams, since, of course, they feel protective of their children and grandchildren, but may not be alert to the risks of these scams based in newer technology. Be cautious when sending money in any of these situations. These callers can request that you send money anywhere in the world. If you cannot verify with your family member (calling their number you had before this call, not the “new number” the caller gives you, or calling the number of a relative, friend, employer that might be in contact with your family member) that they are requesting money and aren’t sure about the transaction, do not send the money. You will have lost any money transferred. |
Loans |
Did you receive a letter or e-mail about getting a loan? Were you asked to send money for loan fees, taxes, service fees, advance payments, or any other reason? This is a scam. Do not send money to a loan company to obtain a loan. If the money is wired and received it cannot be recovered. You will have lost any money transferred. |
Check/money order |
Did you get a check or money order in the mail with instructions to first cash it at your bank and then send some of the funds to someone else through a money transfer? If so, the check/money order is counterfeit and your bank will make you cover the loss. Be aware that counterfeit checks are very hard to identify. You may have been promised a percentage of the check for employment or because of an over payment. This is a scam. Do not send the money and do not cash the check. |
Romance/Relationship Scam |
Did you meet someone through a dating website, personal ad, e-mail, chat room, or an instant message? Did they ask you to send them money for travel or to help them financially? Do not wire the money – this is a scam. Any money received by this person cannot be recovered and you will have lost any money transferred. |
In this type of scam, the victim is led to believe that they have a personal relationship with someone they met online, often by social media, in an online forum or on a dating website. The contact with the scammer might even have been going on for an extended period of time. The victim is often emotionally invested, often referring to the recipient as a fiancée. |
Newspaper ads |
Have you found something for sale in the classifieds or any type of newspaper ad? Did they ask you to pay for the item through a money transfer? This is a scam. Do not use a money transfer to purchase an item from a stranger. It is not safe to use a money transfer service when trying to purchase an item. As a rule, any person-to-person transaction with a stranger that starts online is risky. Plan to meet in a public place (not at your home, if you can avoid it), let friends or family know where you are (or better yet, bring them with you), and don’t risk that the other party knows more about you than absolutely necessary. Fraudulent buyers may ask you to hold the item because they are unable to pick it up immediately and offer to send you a check in excess of the price. That payment is likely to be fraudulent and you will be responsible if you attempt to cash or deposit it. |
Elder abuse scam |
A stranger begins a close relationship with you and offers to manage your finances and assets. Or signatures on documents do not resemble your own signature. Don’t get duped into parting with your money through financial abuse scams. Scammers will try to manipulate you into turning over property and/or money, and this can leave your cash, checking account or even life savings completely wiped out in one transaction. Financial abuse scams can take many forms, including telemarketing fraud, identity theft, predatory lending, and home improvement and estate planning scams. Never trust your money with anyone you don’t know. |
All the other above types of consumer fraud could also be directed towards elderly or senior individuals. |
Advanced Fee / Prepayment scam |
Victim is asked to pay upfront fees for financial services which are never provided. Victims often send a succession of transactions for payment of various upfront fees. Common methods could include credit card, grants, loans, inheritance, or investment. |
Anti-Virus scam |
Victim is contacted by someone claiming they are from a well-known computer or software company and a virus has been detected on the victim’s computer. The victim is advised that the virus can be removed and the computer protected for a small fee with a payment by either credit card or a money transfer. In reality, there was no virus on the computer and the victim has just lost the money they sent for the protection. This can also be setting up the victim for identity theft: some of the scammers will ask the victim to grant remote access to their computer, or to run programs provided by the scammers, either of which allow the scammer to access all of the confidential personal data on your computer. |
Employment scam |
Victim responds to a job posting and is hired for the fictitious job and sent a fake check for job related expenses. Check amount exceeds the victim’s expenses and victim sends remaining funds back using a money transfer. The check bounces and the victim is responsible for the full amount. |
Extortion |
Threats to life, arrest, or other demands by scammers to unlawfully obtain money, property, or services from a victim through coercion that they supposedly owe and threatens if they do not cooperate. |
Fake Check scam |
Victims are often sent a check as a part of a scam and told to deposit the check and use the funds for employment expenses, internet purchases, mystery shopping, etc. The check is fake (counterfeit), and the victim is left responsible for any funds used from the check. Remember, funds from a check deposited into an account should not be used until the check officially clears which can take weeks. |
Immigration scam |
Victim receives a call from someone claiming to be an immigration official saying there is a problem with the victim’s immigration record. Personal information and sensitive details related to the victim’s immigration status may be provided to make the story seem more legitimate. Immediate payment is demanded to fix any issues with the victim’s record and deportation or imprisonment may be threatened if payment is not made immediately by money transfer. Government agencies will never require immediate payment by phone. |
Money-Flipping scam |
Social media is being used to lure new victims into an old get-rich-quick scam where users are advertising ways to turn $100 into $1,000 by “flipping money”. The pitch suggests investors can take advantage of quirks in the monetary system to leverage additional cash and turn a few hundred dollars into thousands. Once con artists have access to the cash, they often block the victim from contacting them via social media or phone number. |
Military |
Military service members are an appealing target for scammers for several reasons. They are abusing the wide-spread admiration for the military and posing as servicemembers in order to trick people into sending them money. |
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Mystery Shopping scam The fraudster contacts the victim through an employment website, or the victim responds to an ad about an employment opportunity to evaluate a money transfer service. The fraudster often sends the victim a check to deposit and instructs the victim to send a money transfer, keeping a portion of the check for their pay. The victim sends the money, the fraudster picks it up, and when the check bounces the victim is left responsible for the full amount. |
Overpayment scam |
The fraudster sends the victim a check that appears to be valid as payment for a service or product. Typically, the amount of the check exceeds what the victim expects to receive, and the fraudster tells the victim to send the excess back using a money transfer. When the check bounces, the victim is left responsible for the full amount. |
Phishing |
Communication impersonating a trustworthy entity, such as a bank or mortgage company, intended to mislead the victim into providing personal information or passwords. A Phish is a fraudulent attempt, usually made through email (although can also be made via phone or text), to steal your personal information or propagate malicious code or software onto your computer. |
Rental Property scam |
Victim sends money for deposit on a rental property and never receives access to the rental property or the victim may also be the property owner who is sent a check from the renter and asked to send a portion of the check back using a money transfer and the check bounces. |
Social Networking scam |
If a cybercriminal gains access to your social media accounts, they also gain access to your close friends and family. Criminals and con artists can take advantage of how much personal information people share online, and then use this information to make skillful and highly targeted pitches to their friends and family, often involving requests for money. |
SMS/Smishing. Beware of texts that spark urgency, asking you to click on a link, taking you to a compromised site, or get you to unwittingly divulge some personal information that could be used against you. |
Telemarketing |
Telemarketing broadly covers almost any commercial transaction that involves the use of a telephone to place or receive calls between a consumer and a telemarketer or seller for the transferring of funds, such as cash-to-cash money transfers or funds loaded onto a prepaid card, as payment for goods or services offered or sold through telemarketing, often relating to a promotion for a “free” or heavily discounted vacation, prize or sweepstakes scams, or the sale of “bargain” magazines. |
Fraud Education: |
Protect yourself from fraud. Only send money to friends and family. Never send money to someone you do not know personally. Never share your prepaid card information with anyone. In addition, if you do know the person requesting money, always verify that they are who they say they are. If you do not recognize the number they are calling you from, call them back at their known phone number to verify their identity. |
Many times, scammers create a sense of urgency to persuade people to transfer money quickly without having time to verify their story. Never send anyone money prior to verifying who they are or confirming the request is legitimate. |
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Your money is not the only target of fraud. Your personal data is also a target. Why? It’s simple. Fraudsters rarely act under their own names. They mostly use third-party data. In order to do this, they acquire it by stealing the identity of other people. |
Another method is to simply steal an ID card. This is why in case of loss or theft of your ID card or passport, you should immediately file a police report. You should also inform your bank. Taking these steps will help you to avoid the unpleasant surprise of finding out that someone took a loan or committed a crime using your data. |
Phishing Emails |
Passwords and IDs hold high value with cyber criminals. Sending phishing emails to a lot of random email addresses is one easy way scammers steal information from unsuspecting people. It’s probably a phishing email if: |
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If you receive a suspicious email: |
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Another money extortion technique is the action of the fraudsters trying to install malware on your computer. This enables them to take control of money when you are making an online money transfer. Malware can be unconsciously installed by opening a file attached to an email from an unknown recipient. This kind of software can change the recipient’s bank account number when sending a money transfer online. It can be counteracted by checking the transfer details thoroughly during its authorization e.g., via text message. |
Protecting yourself against consumer fraud |
How do you protect yourself from scammers/fraudsters who want to take your money? You must learn their tricks, use common sense, and follow the tips listed below. It’s up to you whether scammers can take your money. Always remember that the scammer can succeed or fail based on whether you participate in the scam. Here are some tips to remember to protect yourself from money transfer fraud: |
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Never send a money transfer to receive money or something of value in return after the money has already been sent. |
Fraud FAQs: |
The more you know the less likely you are to become a victim of fraud. Here are the most frequently asked fraud-related questions: |
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Contact your local police immediately. |
Report suspected incidents of over-the-phone fraud or Internet fraud by submitting a report online to the National Consumers League’s Fraud Center. File a complaint with the Federal Trade Commission or call toll free 1-877-FTC-HELP. |
File a complaint with your Attorney General. |
If you used Fiado to send money or used your prepaid card account as a result of a scam, contact us at 1 (914) 810 0187 or via email. 2. What do I do if I’ve been scammed online? If you were a victim of fraud via the Internet, file a report with your local police and the Internet Crime Complaint Center (CCCC), a partnership between the FBI and the National White Collar Crime Center. If you used Fiado to send money or used your prepaid account as a result of a scam, contact us at 1 (914) 810 0187 or via email. 3. What are the most common types of fraud? Please see section Types of Fraud/Scams to see the different types of fraud/scams. 4. What are warning signs of money transfer fraud? Someone you don’t know asks you to transfer money to them. Someone asks you to deposit a check and send them back a portion of the money. Someone pretends to be a friend or relative and calls in a crisis, asking you to wire money right away. Someone tells you you’ve won a prize or contest that you don’t remember entering, and asks you to wire money to pay fees, taxes, or customs. 5. Are there any risks with sending money transfers? Yes, when you don’t know who you are sending the money to. Sending a money transfer is the same as sending cash. Once you send it, you can’t get it back as scammers typically pick up the money within minutes. 6. What are the warning signs of prepaid card fraud? Someone you don’t know asks you to give them your prepaid account information. Offers that ask you to pay an advance fee using your prepaid account to collect a prize or sweepstakes. You are asked to provide your prepaid account information for an online purchase. |
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Report Fraud: Please contact Fiado if someone tries to scam or defraud you, or if you have been a victim of fraud by anyone claiming to be Fiado or associated with Fiado: Contact us at Customer Care: by phone in the US at +1 (914) 810 0187; or in Mexico at +52 (55) 9505 4500; or by WhatsApp at +1 (914) 817 7787; or by email at hola@somosfiado.com You may also want to consider reporting fraud to the following authorities: Contact your local police department and file a police report. FTC Online Complaint Form FTC toll free hotline: 877-FTC-HELP (877-382-4357) National Consumers League’s Fraud Center Internet Crime Complaint Center (CCCC)
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