Hidden Charges and Fake Subscriptions: The Quiet Scam Costing Consumers Millions

Not all scams are loud or obvious. Some slip in quietly, disguised as everyday conveniences. Subscription scams are a growing concern in 2025, and they’re costing consumers millions each year. These scams often start with what looks like a harmless free trial or a low-cost monthly service. But behind the scenes, the terms are vague, the cancellation process is confusing, and the charges keep coming.

Many of these scams rely on what regulators call “dark patterns,” which are deceptive design tactics that make it easy to sign up but difficult to cancel. You might click a button that says “Try for Free,” only to find out you’ve agreed to recurring payments. Or you cancel a subscription, but the company continues charging you anyway, claiming you missed a deadline or didn’t follow the right steps.

Some scammers go even further by creating fake subscription services that look completely legitimate. These sites often feature polished branding, professional emails, and even customer service chatbots to build trust. Victims may not realize they’ve been scammed until they notice unfamiliar charges on their account or struggle to reach a real person for help.

According to recent consumer protection reports, subscription scams and deceptive billing practices have led to hundreds of millions in losses. The charges are often small, just a few dollars a month, which makes them easy to overlook. But over time, they add up. For some members, these hidden fees can lead to overdraft charges, missed payments, or financial stress.

These scams also target mobile users through app stores. Some apps offer free trials that automatically convert to paid subscriptions, and the cancellation process is buried deep in the settings. Others use misleading language or unclear billing cycles to keep users subscribed longer than intended.

It’s also worth noting that these scams don’t just affect individuals. Small businesses and nonprofits are increasingly impacted, especially when signing up for digital tools, marketing platforms, or software trials. Without careful oversight, these recurring charges can quietly drain budgets and create unnecessary financial strain.

Here are a few ways to protect yourself:

• Review your bank and credit card statements regularly. Look for small, recurring charges you don’t recognize.
• Be cautious with free trials. Set reminders to cancel before the trial ends, and read the fine print before signing up.
• Use virtual cards or payment tools that allow you to control recurring charges.
• If you’re unsure about a charge, contact the company directly. If it still doesn’t feel right, reach out to Red Rocks Credit Union. We’re here to help.

Subscription scams may be quiet, but they’re persistent. Staying aware and taking a few simple steps can help you avoid unnecessary charges and keep your financial life on track.