Five Flavors of Faux Fraud

Raccoon pointing to sneaky checkout option.

Things aren’t always as they initially appear — like unauthorized transactions.

Upon closer inspection, sometimes they aren’t unauthorized after all.

Since we’re laser focused on (a) teaching kids the financial ropes, and (b) thwarting fraudsters on our platform, we investigate all unauthorized transaction reports very carefully. With your help, extra due diligence can yield a valuable lesson for a child or an important clue to cracking a new fraudster scheme. Or, sometimes, both.

With over a decade of researching fraudulent transactions under our belt, we’ve compiled a list of classic faux fraud flavors — transactions that look like fraud, but aren’t. Here are five of the most common patterns we see and some tips for identifying them: