At one time or another, you may have received something in the mail indicating that you won the lottery or that you can make so much money just by sitting at home and doing practically nothing. In such instances, you have to remember one thing: something that sounds too good to be true probably is.
Scams are setup to get you to respond on some level to either obtain your personal identifying information or to get you to give money. By following some simple suggestions, you can safely avoid the pitfalls set by many scammers. But first, let’s take a look at the type of scams you should be looking out for:
Types of Scams
- Phone calls asking you to provide computer identifying information such as an IP address or to allow remote access to your computer to resolve an issue (e.g., a virus). Scammers use this as a means to steal personal information (i.e., passwords and banking information) you may have stored on your device or to get you to download and pay for fake or harmful software.
- Emails or phone calls requesting banking or credit card information. The scammer will ask for your banking or credit card details saying they are from your bank or are a relative who is in need of help. They may even ask for your user name or password.
- Unsolicited text messages or emails to get you to buy health products, magical cures, and/or a gamut of other things. These products typically don’t work. And your response to solicitations you never signed up for (e.g., to unsubscribe from a list or inquiry about a product or service they are selling) confirm to the scammer you’re worth pursuing for further fraud as they now know your contact information is valid.
- Online gambling casinos that get you to buy-in but don’t pay-out any winnings. Foreign lotteries will likely require you to pay fees or custom duties before they claim you get your money.
- Dating scams that will have you paying for a prospective match who doesn’t exist.
How to Avoid Scams
- Never wire money to a total stranger or for a service you have not received. When doing business, only use websites in good standing.
- If you decide to deal with a person you don’t know or a company you haven’t heard of before, do your due diligence by researching their background. Be sure to get a verified active contact, working phone number, and physical address. Conduct an online search and check reviews of the company before you proceed. Moreover, check out the company’s return and exchange policy. Be cautious with policies that state “All sales are final” or “No refunds.” This could be an indicator you are getting a bogus product and/or that the company has poor customer service.
- Giving out personal details (especially financial data) is dangerous. Whether through a text message, a phone call, or an email, be prudent about the information you share with others. Keep a check on your debit and credit cards as well as bank accounts if you have been tricked into revealing your personal information. When in doubt, have your financial institution(s) issue new debit and/or credit cards.
- Keep your mobile phone and your computer secure. Install reputable anti-virus software on your electronic devices and make your passwords difficult to hack.
- Do not open any e-mails or text messages that look suspicious, lure you into clicking a link to obtain additional information, or are from sellers from whom you’ve never subscribed to. These messages should be categorized as spam and/or immediately deleted and blocked.
- Have your name removed from telemarketing lists. You may register your phone number on the “Do Not Call” list at donotcall.gov or by calling 888-382-1222. This will help reduce the number of unsolicited phone calls you receive. If you still receive unsolicited calls after 31 days of being registered, be on your guard. Do not use the word “yes” or press any number options on your phone. Hanging up the phone or not answering unfamiliar numbers altogether are likely your best options.
- Avoid giving money to charities that lack accountability in managing your donated funds. Be extra vigilant of scams or pop-up charities following natural disasters. Giving to reputable charities will ensure that your money is used for the appropriate cause.
If you are well informed and/or use common sense, you can avoid getting scammed. Be sure to alert the appropriate authorities (e.g., the Federal Trade Commission) if any fraudulent attempts are made