How to Avoid Fake Password Reset Scams

A password reset is supposed to help you get back into your account. But scammers can use that same process to break in, lock you out, or trick you into handing over the code they need.

These scams can show up as a text, email, phone call, pop-up, or direct message. They may claim someone is trying to access your account, your password needs to be reset, or you need to share a code to stop fraud.

In this guide, you’ll learn how fake password reset scams work, how to spot the warning signs, and what to do before you click a reset link or share a verification code.

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TL;DR: Quick Decision Guide

• If you receive a password reset email you did not request → do not click the link.
• If someone asks for your verification code → do not share it. That code is for you only.
• If a caller says they need your code to stop fraud → hang up and contact the company directly.
• If your account sends repeated reset notices → change your password through the official app or website.
• If you clicked a fake reset link → change the password, turn on multi-factor authentication, and review account activity.
• If you shared a code → treat the account as compromised and secure it immediately.

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What Is a Fake Password Reset Scam?

A fake password reset scam happens when a scammer uses a password reset or verification process to trick you into giving them access to your account.

This can happen in two common ways.

The fake reset link scam:
You receive an email or text that says your password needs to be reset. The link takes you to a fake website that looks real. When you enter your username and password, the scammer captures them.

The verification code scam:
The scammer tries to log in to one of your real accounts. That triggers a real verification code sent to your phone or email. Then the scammer contacts you pretending to be the company and asks you to read the code back.

The FTC is clear: your verification code is only for you to log in to your account. Anyone who asks for your account verification code is a scammer.

👉 Compare: Identity Protection Tools in the Marketplace →

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Step 1: Treat Unexpected Reset Messages as Suspicious

A password reset message is normal when you asked for it. It is suspicious when it arrives out of nowhere.

Be careful if the message says:

• “Your password has expired.”
• “Reset your password now.”
• “Someone tried to access your account.”
• “Your account will be locked.”
• “Click here to verify your login.”
• “Use this code to stop the request.”
• “Your account has been suspended.”

The message may look like it came from your bank, email provider, social media platform, payment app, shopping account, phone carrier, employer, or school.

What to do:
Do not click the reset link in an unexpected message. Open the official app or type the website address yourself. If there is a real issue, you should see it after logging in safely.

Smile Money Tip: A real password problem can be handled outside the message that scared you. When in doubt, leave the message and go directly to the account.

👉 Related: How to Set Up Two-Factor Authentication the Smart Way →

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Step 2: Never Share a Verification Code

A verification code can be the final key a scammer needs.

They may already have your username, email, phone number, or even your password from a data breach. But if multi-factor authentication is turned on, they still need the code sent to you.

So they may call, text, or message you and say:

• “We need the code to verify your identity.”
• “Read me the code to cancel the password reset.”
• “This confirms you are the account holder.”
• “We are stopping a fraudulent transaction.”
• “The code proves you did not request this.”
• “Send the code so we can protect your account.”

Do not share it.

The FTC warns that banks use verification codes to prove you are really you, and if you share the code, the scammer can use it to prove they are you. No caller, including someone claiming to be from a bank’s fraud department, should ask for it.

What to do:
If someone asks for your code, stop responding. Hang up, block the number, and contact the company directly.

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Step 3: Check the Link Before You Trust It

Fake password reset emails often send you to a fake login page. It may look exactly like the real website, but the web address is slightly different.

Watch for:

Suspicious Link Pattern	Why It’s Risky
paypaI-security.com	Uses a lookalike letter
bank-reset-login.net	Not the bank’s official domain
secure-account-update.info	Generic and suspicious
bit.ly or other short links	Hides the final destination
Long links with random characters	May redirect to a fake page

On a computer, hovering over a link may show the destination before you click. On a phone, links are harder to inspect, so it is usually safer to avoid the link and open the app directly.

What to do:
For important accounts, never reset passwords through an unexpected link. Use the official app or website.

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Step 4: Know Which Accounts Need Extra Protection

Some accounts are more dangerous if taken over.

Protect these first:

• Email accounts
• Bank and credit union accounts
• Credit card accounts
• Payment apps
• Phone carrier account
• Retirement and investment accounts
• Cloud storage
• Social media accounts
• Shopping accounts with saved cards
• Tax software accounts

Your email account is especially important. If a scammer gets into your email, they may be able to reset passwords for other accounts.

CISA explains that multi-factor authentication uses more than a password to access an app or account, such as a text code or fingerprint. This extra step can help protect accounts if a password is stolen.

What to do:
Use strong, unique passwords and turn on multi-factor authentication, especially for email and financial accounts.

👉 Explore: How to Spot Bank Impersonation Scams →

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Step 5: Be Careful With “Account Recovery” Calls

Some password reset scams happen by phone.

A caller may say they are from:

• Your bank’s fraud department
• Apple, Google, Microsoft, or Amazon
• Your email provider
• A payment app
• Your phone carrier
• Social media support
• Tech support

They may claim your account is under attack and ask you to “confirm” codes, approve prompts, install an app, or stay on the line while they help.

This is often social engineering. The scammer is trying to guide you into giving them access.

What to do:
Do not stay on the line. Hang up and contact the company directly through the official app, website, or card number.

A real company will not need you to read back your code to stop fraud.

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Step 6: Strengthen Your Account Recovery Settings

Many people focus on passwords but forget recovery settings. Scammers may try to change your recovery email, phone number, or backup method so they can keep access.

Check important accounts for:

• Recovery email
• Recovery phone number
• Backup codes
• Trusted devices
• Connected apps
• Forwarding rules
• Logged-in sessions
• Security questions
• Authorized devices

What to do:
Remove anything you do not recognize. Update old phone numbers and email addresses. Avoid security questions with answers that can be found on social media, such as your pet’s name, school, hometown, or birthday.

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What to Do If You Receive a Password Reset You Did Not Request

Do not panic, but do not ignore repeated alerts either.

Take these steps:

1. Do not click the link.
2. Open the account through the official app or website.
3. Check recent login activity.
4. Change your password if anything looks suspicious.
5. Turn on multi-factor authentication.
6. Log out of all devices if the platform allows it.
7. Review recovery settings.
8. Report the message as phishing if it looks fake.

If it is a one-time reset email, it may simply mean someone entered your email by mistake. If it happens repeatedly, someone may be trying to access your account.

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What to Do If You Clicked a Fake Password Reset Link

Act based on what happened.

If you clicked but did not enter information:
Close the page. Do not download anything. Watch for suspicious account activity.

If you entered your password:
Change the password immediately through the official app or website. If you reused that password elsewhere, change it there too.

If you shared a verification code:
Assume the account may be compromised. Change the password, remove unknown devices, check recent activity, and contact the company.

If you downloaded software:
Disconnect from the internet if needed, remove the software, run a security scan, and change passwords from another device.

If money was moved or personal information was exposed:
Contact the financial institution, report the scam, and consider identity theft protections such as a fraud alert or credit freeze.

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Common Mistakes to Avoid

• Clicking password reset links you did not request
• Sharing one-time verification codes
• Assuming a reset email is real because it has a logo
• Reusing the same password across accounts
• Ignoring repeated reset attempts
• Approving login prompts you did not request
• Using weak security questions
• Forgetting to check recovery email and phone number
• Staying on the phone with someone who says they are “helping” secure your account
• Resetting passwords through links in texts or emails instead of official apps

A password reset should put you back in control. If the process makes you feel rushed, confused, or pressured, pause.

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What to Do Next

Set up a safer password reset system:

• Use a password manager.
• Turn on multi-factor authentication.
• Protect your email account first.
• Update recovery phone numbers and emails.
• Save backup codes somewhere secure.
• Remove old devices from important accounts.
• Use official apps or websites for password changes.
• Never share verification codes with anyone who contacts you.

If possible, use stronger authentication methods like authenticator apps, passkeys, or security keys for your most important accounts.

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FAQs on Avoiding Fake Password Reset Scams

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Final Thought

Fake password reset scams work because they turn a normal security tool into a moment of confusion. The scammer wants you to believe the code, link, or call is protecting you.

Your rule is simple: never share codes, avoid unexpected reset links, and manage password changes only through the official app or website.

Next Steps:

• 👉 Learn: How to Secure Your Passwords With a Password Manager →
• 👉 Read: How to Protect Your Email Account From Hackers →
• 👉 Next: How to Protect Yourself From Phishing Scams →
• 👉 Compare: Identity Protection Tools in the Marketplace →