The Michigan Department of Insurance and Financial Services is alerting residents about refund scams in which fraudsters try to convince consumers they are entitled 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, DIFS Director Anita Fox said in a news release. 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.

With this scam, criminals claim to work for trusted places, such as a bank or credit union, local government, insurance companies, or well-known businesses, and will reach out via calls, letters, emails, texts or messages on social media claiming you are owed money.

The person may tell 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.

The DIFS offers these best practices to avoid falling victim to refund scams:

— 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 a check for more than the amount supposedly owed. They may alert you to their mistake, ask you to cash the check and keep what is owed to you, and request you 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 8 a.m. to 5 p.m. Eastern time Monday through Friday. To learn more and file a complaint, go to Michigan.gov/DIFScomplaints.

The department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information on the Michigan Department of Insurance and Financial Services, go online to Michigan.gov/DIFS or follow the department on Facebook, X, or LinkedIn.