It is an unfortunate reality that many scammers are out there seeking to get their hands on your hard-earned cash. The good news is that there are steps you can take to educate and protect yourself, your family, and your long-term financial security. Know that there are many different scams out there. The list below can help you identify potential fraudsters and create an action plan to prevent damage and protect your resources.

To Prevent a Scam, First You Must Recognize the Tactics Commonly Used.

Scammers typically use pressure to encourage you to take immediate action. If you feel any pressure, stop and think before you act.

For example, if you receive a phone call threatening legal or disciplinary action or financial penalties, stop and do your homework. Slow down and reach out to the legitimate resources provided below and talk the situation over with trusted people in your life who may be able to help you determine if it is a scam.

Other Considerations to Avoid Falling Prey to Scams

Understand your current situation. Be aware of all debts you owe and keep track of payment history. Staying up to date and organized is important to keep you from feeling vulnerable in pressure situations.

Research charitable organizations before donating money. Check if others have reported problems.

Beware of people or organizations specifically interested in your military service. According to Federal Trade Commission (FTC) research, military families are often a target for scams. Read more.

Don't rely on caller ID. If someone calls from a state or federal agency, hang up and find their number. Then call back directly to verify their status.

Be very cautious if you're requested to wire money. There is little to no protection for wire transfers. Consider using a credit card instead since they have built-in fraud protections.