DIFS Alerts Michiganders to Refund Scams and Best Practices to Avoid Falling Victim

Media Contact: [email protected] 
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: May 13, 2025

(LANSING, MICH) The Michigan Department of Insurance and Financial Services (DIFS) is alerting Michiganders of best practices to help avoid being victimized by refund scams in which fraudsters try to convince consumers of entitlements to a refund, rebate, or reimbursement from a company.  

“DIFS continues to receive fraud complaints from consumers who are receiving email messages promising refunds from what appear to be legitimate businesses,” said DIFS Director Anita Fox. “Consumers should be skeptical anytime anyone contacts them with the promise of unexpected money. Never respond to an unsolicited email or text, and certainly never give out personal or financial information. DIFS is committed to providing Michiganders with resources and guidance to avoid falling victim to these scams.”

With this scam, criminals claim to work for trusted places, like your bank or credit union,  local government, insurance companies, or well-known businesses, and will reach out to you via calls, letters, emails, texts, or messages on social media claiming to let you know about money you are owed.  The person contacting you may tell you that they need you to provide or verify personal or financial information before they can issue you a refund, which can lead to your identity being stolen or money being taken out of your accounts. Scammers may try to get you to pay a fee in advance supposedly to help them recover or refund the money they claim to owe you.

To avoid falling victim to refund scams, here are some best practices to follow:

• NEVER give personal or account information to anyone calling, writing, emailing, texting, or messaging you on social media, even if the person contacting you says it is for “verification purposes.” This information should be provided only to places you have initiated contact with.
• NEVER pay up front to reclaim money from a refund. Criminals may insist on payments through unusual methods, such as cash, gift cards, cryptocurrency, wire transfers, and payment apps.
• NEVER cash checks from unverified sources. This is a very common fraud in which scammers send you a check for more than the amount owed. They may alert you to their mistake, ask you to cash the check and keep what is owed to you, and request you to send them the balance. What you will find later is, the check you received is fake, and you are now on the hook to repay all the funds to the financial institution where you cashed the check.
• Research the business claiming to help you recoup money and call the phone number you know will get you to someone who can be trusted to verify they are working on your refund. Do not call phone numbers provided in text messages or voicemails by the person contacting you, and never reply to unsolicited text messages, emails, or social media messages.

Individuals who believe they are a victim of fraud should first contact their financial institution or the company with the compromised account to attempt to resolve the issue. If you feel the company did not appropriately handle your complaint, contact DIFS by calling 877-999-6442, Monday through Friday 8 a.m. to 5 p.m. To learn more and file a complaint, visit Michigan.gov/DIFScomplaints.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

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