When a big company settles a case, millions of people may be owed money. Scammers follow the headlines. They send texts, emails, and calls saying you are owed a refund and only need to “verify” your account or pay a small fee to release it. The rule that protects you is simple: you never have to pay to get a real refund.
How real refunds work
- Some are automatic. Money arrives by check, PayPal, Venmo, or a credit to your account without you doing anything.
- Some need a claim form. Class-action settlements often have an official claim website. Filing is free, and the notice will name the court case.
- None charge a fee. No real refund program asks for a payment, a gift card, cryptocurrency, or your bank or account password.
- Government agencies do not call to arrange your refund. The FTC lists its own refund programs at ftc.gov/refunds.
Red flags
- A fee, “tax,” or “processing charge” before you can receive the money
- A request for your bank login, card number, or Social Security number to “verify” you
- A deadline measured in hours, or a threat that you will lose the money
- A caller who says they are from the FTC or another agency and offers to help you claim
- A link in an unexpected text or email
How to check a refund notice
- Do not click the link or call the number in the message.
- Type the agency or company’s web address yourself, or search for the settlement name plus “official site.”
- Compare what the official page says about how payments are made with what the message asked you to do.
Refund scams often target older adults with official-sounding calls. A short conversation with a parent or grandparent about this one rule, never pay to get paid, can prevent a real loss.
If you already paid or shared details
Call your bank or card company right away. Change any password you shared, starting with email and banking. Report the scam at ReportFraud.ftc.gov. If you shared your Social Security number, see IdentityTheft.gov and consider a credit freeze.
A real example
Payments from the FTC’s 2025 Amazon Prime settlement went to eligible customers automatically, and the FTC said it was not contacting people about them. Messages asking Prime customers to verify an account or pay to claim a refund were a textbook version of this scam.
Sources: FTC Refund Programs; FTC announcement on Amazon Prime settlement payments.