<\/p>\n
Scamming the elderly online and other vulnerable groups is sadly common, as are scams that take place over the phone, through email, and even in person. That said, no one is immune from scams. In fact, according to a report by the FTC<\/a>,\u00a0millennials lost more money to financial scams than seniors in 2017.<\/p>\n In this post, we\u2019re going to outline some of the biggest and most common financial scams out there.<\/p>\n We cover internet scams, such as email scams, and other scams that can be conducted over the phone or through the mail.<\/p>\n Please take a moment to read this and share it with your friends and family (on Facebook, Twitter, Instagram, etc) so we can all avoid becoming the next money scam victim.<\/p>\n We\u2019re going to start with one of the most popular financial scams out there \u2013 it\u2019s called the 419 Scam.<\/p>\n The number 419 is a reference to the article of the Nigerian Criminal Code that deals with fraud.<\/p>\n Sometimes, the 419 Scam is known as the \u201cNigerian Scam\u201d or the \u201cNigerian Prince Scam<\/a>.\u201d<\/p>\n This one has been around for hundreds of years \u2013 from the late 18th<\/sup> century in fact \u2013 making it one of the biggest financial frauds in history.<\/p>\n In the late 18th<\/sup> century, the scam was known as the Spanish Prisoner scam.<\/p>\n Back then, a fraudster would contact a wealthy businessman and claim that they needed help to smuggle someone that\u2019s connected to a wealthy family out of a prison in Spain.<\/p>\n Then, in exchange for the businessperson\u2019s assistance, the scammer would offer to share the money with the victim.<\/p>\n But, here\u2019s how the scammer would extract the cash from their victim \u2013 they would ask the businessperson for a small amount of money to bribe the prison guards, in order to get the prisoner out of jail, and thus get their fortune.<\/p>\n Of course, the businessperson would not receive any money, but would instead lose their own.<\/p>\n Join Smart Panel Now<\/a>\n<\/p>\n<\/div>\n This scam had many variants at the time and is still prevalent in modern times.<\/p>\n 419 Scams have been around for decades \u2013 and started out in the mail. Scammers would send out letters with a story and ask for money, basically.<\/p>\n Now, though, these fraudsters use email.<\/p>\n Here\u2019s how 419 scams work:<\/p>\n You will not receive the money. Instead, the scammers will keep creating hurdles or obstacles that stop them from sharing the money with you, and they\u2019ll continue asking for more money to pay fees.<\/p>\n Some scammers will even ask you to share your bank details.<\/p>\n They won\u2019t usually take money out of your bank account right away.<\/p>\n Instead, they\u2019ll save your bank details, and sell them to other fraudsters.<\/p>\n Then, months later these fraudsters will wipe out funds from these accounts.<\/p>\n These fraudsters may even send you documents that look official \u2013 for example, they might appear to contain official government stamps or seals.<\/p>\n If you get an email like this, do not respond to it.<\/p>\n Instead, report it (we cover how to report 419 scams below).<\/p>\n While this type of scam is commonly referred to as the Nigerian Scam, it\u2019s not just this country that\u2019s involved.<\/p>\n People who run this scam can also be found in other places around the world, such as the United States, the Netherlands, and the United Kingdom.<\/p>\n Even if they don\u2019t claim to be from Nigeria, if anyone offers to transfer money to you in exchange for payment for fees or taxes, don\u2019t respond, and report the issue.<\/p>\n If you\u2019ve received one of these emails (or have received a similar message in the mail or on the phone, then you can report it.<\/p>\n This is a common scam that again starts right in your inbox.<\/p>\n And, it\u2019s one of the biggest online scams around right now.<\/p>\n According to the FBI<\/a>, email scams resulted in a $5.2 billion loss between October 1, 2013 and December 31, 2016.<\/p>\n Basically, you get an email from what appears to be a legitimate company or bank that you actually use.<\/p>\n The email might be from the bank that you have an account with or a store that you shop at.<\/p>\n The message contains a link that you need to click on in order to verify your information \u2013 usually your login details, so your email address and password, and bank account numbers.<\/p>\n The aim of phishing scams is to basically steal sensitive information, such as usernames, bank account numbers, email addresses, and passwords.<\/p>\n You can usually tell when it\u2019s a phishing email because the email address it is sent from just looks suspicious.<\/p>\n Often, the email address features a legitimate company name, but it includes lots of numbers and symbols too \u2013 like ACME-SUPPORT4453[email\u00a0protected]<\/span><\/a>.<\/p>\n Also, these emails tend to be filled with grammatical errors.<\/p>\n Never click on links that you get in emails that ask you to verify your personal information.<\/p>\n For example, if you get an email that appears to be from your bank asking you to verify details, then do not click the link in the email.<\/p>\n Instead, go right to your bank\u2019s website and login to your account that way \u2013 you\u2019ll see that you, in fact, have no messages from your bank.<\/p>\n As we said, don\u2019t click on links in emails that are requesting information from you.<\/p>\n If you get a phishing email, then you can report it in a few different ways:<\/p>\n Next on our list is the \u201cyou\u2019ve been pre-approved\u201d scam.<\/p>\n This is another pretty common one that, unfortunately, a small minority of people fall for, especially those who are experiencing financial strain.<\/p>\n With this one, you get an email that tells you that you have been pre-approved for a credit card or a bank loan.<\/p>\n These scams usually offer appealing credit limits as well.<\/p>\n The catch is that you have to pay a fee upfront when you sign up.<\/p>\n Of course, you haven\u2019t been pre-approved, and scammers are just looking to steal money from you.<\/p>\n While some credit cards do have an annual fee, a bank does not charge this on sign up.<\/p>\n And, an accredited bank would never pre-approve you for a loan or credit card without an application.<\/p>\n So do not respond to these messages.<\/p>\n You can report this type of scam to the FTC. Just visit the Scams and Rip-Offs section of the website here<\/a> to file your report \u2013 select the \u201cNo Match Found\u201d option.<\/p>\n You could also report the pre-approval message as spam on the FTC website here<\/a>.<\/p>\n Also, you can call the FTC at 1-877-382-4357 if you receive one of these pre-approval emails.<\/p>\n If you are selling something online, then be particularly wary of this scam.<\/p>\n This type of scam is also known as the Over Payment Scam.<\/p>\n The scam artist asks you to deposit the check into your bank account, and then wire part of the money back to them.<\/p>\n Scammers target sellers on auction-based websites.<\/p>\n What they do is they offer to pay more than the price stated on the listing.<\/p>\n This seems like a great offer, right?<\/p>\n Who wouldn\u2019t want $150, rather than $100?<\/p>\n Well, with this scam, like all of them, the offer is too good to be true.<\/p>\n Not, only do you NOT get the additional money promised, but you actually get no money at all.<\/p>\n What happens is the scammer says they\u2019ll pay you via check, but then cons you into sending the difference back to them through a wire transfer.<\/p>\n That\u2019s right, when it\u2019s time to actually cash your check<\/a>, the check bounces!<\/p>\n As we mentioned above, wire transfers aren\u2019t refundable and often aren\u2019t traceable \u2013 hence why many scammers use them.<\/p>\n The check then bounces, since it was fake, and you are left with no money and have to pay for the difference anyway.<\/p>\n This scam also happens a lot with money making opportunists and work at home jobs like mystery shopping jobs<\/a>.<\/p>\n If you are selling an item online, never accept more than the selling price for the item. This person is attempting to scam you.<\/p>\n Always be wary of offers where you are asked to wire a portion of the funds back to somebody.<\/p>\n These scammers are good at making checks look legitimate and official, so don\u2019t trust the appearance of checks!<\/p>\n Most importantly, as we stated above, never accept a check that includes an overpayment and DO NOT wire money to people or companies that you don\u2019t know.<\/p>\n As with all of the scams on this list, you should definitely report it.<\/p>\n There are a few ways that you can report these fake check scams:<\/p>\n Winning the lottery is a dream that many people have, so, of course, scammers prey on that.<\/p>\n This is a pretty common scam that cons people out of their money.<\/p>\n With this type of scam, you get an email (as you can see from the list so far, the email is a favorite tool of the fraudster), that says you\u2019ve won a huge amount of money.<\/p>\n Except that you haven\u2019t even entered a lottery or any type of sweepstakes.<\/p>\n So, it\u2019s a totally bogus offer.<\/p>\n The biggest red flag, aside from this unexpected email for a draw you don\u2019t remember entering, is the fact that the email asks you to pay a fee so that your winnings can be processed.<\/p>\n Sometimes, the email doesn\u2019t ask you to pay a fee, but instead, says that it requires more information from you \u2013 basically, the scammer is trying to get personal information from you!<\/p>\n Unless you have bought an official lottery ticket, or have entered a legitimate contest, then you won\u2019t have won money.<\/p>\n Plus, if you have won the lottery, it\u2019s your responsibility to contact the retailer.<\/p>\n State lotteries will publish the results online or will broadcast them on television \u2013 not by emailing you directly.<\/p>\n It\u2019s the responsibility of the ticket holder to make a claim for the winnings.<\/p>\n Hence why you hear those stories of those unclaimed winnings!<\/p>\n If you have been the victim of a lottery or other prize scam, then contact the Federal Trade Commission.<\/p>\n You can report a lottery scam to the FTC online here<\/a>.<\/p>\n Or you can give the FTC a call on 1-877-382-4357.<\/p>\n If the scam involves U.S. mail, then you can also contact a postal inspector, which you can do here<\/a>.<\/p>\n Scammers are always trying to play on people\u2019s emotions \u2013 and one of the things they know is that many people are struggling financially.<\/p>\n So they exploit this fact.<\/p>\n Debt relief scammers call or email people and claim that they can help them to relieve their debts.<\/p>\n They offer to do things like consolidate or settle debts.<\/p>\n But, as usual, this claim is false, and there\u2019s a catch:<\/p>\n You have to pay an up-front fee for these services.<\/p>\n If you are already in a financially poor situation, this can be catastrophic for your finances.<\/p>\n In May 2017, the Federal Trade Commission and the State of Florida released a press release<\/a> regarding a phony debt relief operation.<\/p>\n According to the press release:<\/p>\n \u201cAt the request of the Federal Trade Commission and the State of Florida, a federal court has temporarily halted a massive phony debt relief operation that bilked tens of millions of dollars from financially strapped consumers, including the elderly and disabled.\u201d<\/em><\/p>\n According to the FTC and Florida, through eleven companies, three scammers falsely promised to pay or settle consumer\u2019s debts or obtain dismissals of their debts and improve their credit. With these promises, the scammers got people to pay hundreds or thousands of dollars a month.<\/p>\n After a while the victims realized that their debts were still unpaid, their accounts were in default and their credit scores were severely damaged.<\/p>\n Some of the victims were actually sued by their creditors, and others were forced into bankruptcy.<\/p>\n The press release adds<\/p>\n \u201cThe defendants then promised consumers guaranteed debt consolidation loans for tens of thousands of dollars with attractive interest rates and significantly lower monthly payments than consumers were paying their creditors.\u201d<\/em><\/p>\n However, the victims were scammed out of hundreds of dollars each month:<\/p>\n \u201cOnce consumers agreed to the purported loan, the defendants almost immediately debited the consumers\u2019 bank accounts for an initial loan \u201crepayment\u201d or a processing fee, and then kept debiting consumers\u2019 bank accounts each month, in amounts ranging from $200 to $1,000 or more. The FTC and Florida charge that the defendants, despite taking these monthly payments, failed to extend consumers the promised debt consolidation loans.\u201d<\/em><\/p>\n And, as is the case with many of the scams on this list, the defendants took steps to appear legitimate, according to the press release:<\/p>\n \u201cThe FTC and Florida allege that the defendants falsely claimed non-profit status to appear more credible and legitimate.\u201d<\/em><\/p>\n The defendants even went as far as to contact those who were already seeking assistance with debt relief:<\/p>\n \u201cThe defendants also called people who were already enrolled with debt relief providers claiming they were taking over the servicing of those accounts and falsely claiming they would provide the same or similar services. Many of their victims had worked for years with their previous debt relief providers and had saved money in escrow accounts for use in negotiating with creditors. The defendants told these consumers to transfer their escrow money to defendants and then debited up to $1,000 each month from the consumers\u2019 bank accounts. Contrary to the defendants\u2019 promises, people got little to nothing for their money and ended up in worse financial positions.\u201d<\/em><\/p>\n As you can see from this one case, this scam can really damage people\u2019s lives and even result in bankruptcy.<\/p>\n Of course, if someone phones you saying that they can relieve your debts, it is most likely a scam.<\/p>\n Never give out your personal details or agree to pay any money to a person who claims to be working for a debt relief company.<\/p>\n If you\u2019ve been contacted by a scammer claiming to help you with your debts, then contact the FTC to file a report.<\/p>\n While every scam is sad and unscrupulous, this has to be one of the worst: the Grandparent scam.<\/p>\n It plays on the emotions of senior citizens for financial gain.<\/p>\n With this con, a scammer calls an elderly person and when the person answers, the scammer says something like \u201cHi Grandma, do you know who this is?\u201d<\/p>\n Since the person is unsuspecting, they\u2019ll just think about which grandchild the caller most sounds like and take an educated guess about which grandchild is calling.<\/p>\n The scammer basically falsely identifies as one of the victim\u2019s grandchildren.<\/p>\n Then, once they\u2019ve established their fake identity, the scammer will ask for money.<\/p>\n Money is requested under the guise of an unexpected (AKA fake) financial problem \u2013 such as payment for repairs or overdue rent.<\/p>\n The scammer will generally ask for the money to be paid via Western Union or MoneyGram since these don\u2019t always require any ID to collect.<\/p>\n In order to keep the con quiet, the scammer will say something like \u201cplease don\u2019t tell my parents \u2013 they\u2019d be so mad.\u201d<\/p>\n It\u2019s an easy scam that can be used over and over, so it really is one to watch out for.<\/p>\n If someone phones you and asks you who you are, always respond by asking their name first, and never trust a stranger who calls to request money over the phone.<\/p>\n If you get a call like the one we described above, then you can get help.<\/p>\n You can report imposter scams, such as a person posing as a family member or friend over the phone, to the FTC:<\/p>\n Tax scams are another one to watch out for.<\/p>\n Tax scams are also known as IRS imposter scams because they involve the fraudster pretending to be an IRS agent.<\/p>\n With this type of scam, a person emails you or calls your home and pretends to be an IRS agent.<\/p>\n There are actually two ways that fraudsters use this type of scam:<\/p>\n In this instance, the caller or emailer claims that you owe taxes and will demand that you pay them immediately.<\/p>\n The caller or emailer may even be quite aggressive \u2013 threatening to arrest you if you don\u2019t pay this so-called \u201cunpaid tax\u201d.<\/p>\n So this is definitely one of the more intimidating scams on the list.<\/p>\n In this situation, the person pretending to be an IRS agent will demand personal information from you.<\/p>\n If the scammer gets in touch via email, then the message will require you to verify your personal information. These messages often contain a link \u2013 just like with those phishing scams that we mentioned above.<\/p>\n And if you follow that link, your personal information will be stolen.<\/p>\n Whichever scam it is, do not pay the money and do not give out any personal information.<\/p>\n The IRS would never call you or email you to request payment or to ask for personal information.<\/p>\n If you did owe any taxes, the IRS would send a letter to you in the mail about it.<\/p>\n It\u2019s also important to store all of your past tax forms and information safely and securely.<\/p>\n If you think that an IRS imposter has contacted you here\u2019s how to report it:<\/p>\n Sometimes known as the \u201csweetheart scam,\u201d the Romance Scam is another one that preys on people\u2019s emotions.<\/p>\n And, it\u2019s a scam that can be particularly devastating on people\u2019s finances, and of course their emotions.<\/p>\n According to the FTC<\/a>, victims of romance scams lost $143 million.<\/p>\n This scam is one that the scammer can use to take money from the same people over and over again.<\/p>\n Unscrupulous scammers join dating websites or contact people online in an attempt to extort money from people looking for love.<\/p>\n Basically, the scammer requests money under the guise of a romantic relationship.<\/p>\n It starts out innocently, and money is not even mentioned.<\/p>\n The scammer pretends to be a regular old Joe (or Jolene) looking for love.<\/p>\n The scammer will try to gain the victim\u2019s trust and eventually, will start to request money.<\/p>\n These requests can seem realistic, making this one of the more effective tactics for scamming people out of money.<\/p>\n The scammer will come up with an excuse, like \u201cI\u2019d love to see you, but I can\u2019t afford a plane ticket,\u201d or \u201cmy car just broke down, and it needs repairs, but I can\u2019t afford them.\u201d<\/p>\n Basically, the scammer invents a problem that the victim\u2019s money can solve.<\/p>\n The victim\u2019s heartstrings are tugged, and they offer to give the money.<\/p>\n Of course, there is no such problem, and the person is just looking to scam the victim out of money.<\/p>\n The scammer will likely continue to extort money from the victim over and over again, until the victim runs out of money, or realizes that the person is a scam artist.<\/p>\n Romance Scams are particularly troubling because they play so much on people\u2019s emotions.<\/p>\n And love is a powerful emotion.<\/p>\n Scammers know this and they sure as heck use it.<\/p>\n If you\u2019re looking for love, then it\u2019s understandable that you don\u2019t want to be a complete cynic, but you definitely need to be careful.<\/p>\n Here are a few things that you can do to stay safe:<\/p>\n The FTC has a section on its website specifically for reporting Romance Scams, which you can find here<\/a>.<\/p>\n This is another type of scam that happens right over the phone.<\/p>\n You know those calls where you pick up the phone only to hear an automated message, rather than a live person talking at the other end of the line?<\/p>\n Well, those types of calls are known as robocalls \u2013 and in a lot of cases, they are scams!<\/p>\n And, unfortunately, robocall scams are on the rise.<\/p>\n In 2017, there were more than 4.5 million complaints about robocalls according to the Federal Trade Commission<\/a>.<\/p>\n In 2015, just two years prior, there were just 2.2 million complaints filed.<\/p>\n So in two years, the number of complaints about robocalls has more than doubled.<\/p>\n This is because they are quick and, just as importantly, cheap for a scammer to implement.<\/p>\n It doesn\u2019t take much money or effort to make these robocalls \u2013 meaning scammers can call millions of people each day without having to use much effort or money.<\/p>\n It\u2019s important to note that not all robocalls are illegal.<\/p>\n Some prerecorded messages are allowed.<\/p>\n The legality of these automated calls is dependent on what the message actually contains.<\/p>\n Here\u2019s what\u2019s allowed<\/strong><\/p>\n Messages that are purely information are permitted.<\/p>\n So, for example, if you get an automated call to let you know that your flight has been canceled, then it\u2019s legal.<\/p>\n Or, if you get a reminder about an appointment or about a delayed school opening that\u2019s allowed too.<\/p>\n Other types of prerecorded messages that are allowed include:<\/p>\n What isn\u2019t allowed is any type of promotional messaging<\/strong><\/p>\n Businesses are not allowed to send out pre-recorded messages that promote the sale of their goods or services.<\/p>\n Also, prerecorded messages from a business that is getting in touch with you to collect a debt are allowed as well.<\/p>\n But, messages that try to sell you services to reduce or relieve your debt are NOT permitted.<\/p>\n So, now that you know what\u2019s permitted, let\u2019s take a look at how these robocall scams work.<\/p>\n Basically, you get some sort of promotional call that\u2019s automated. So when you answer, a prerecorded message will play.<\/p>\n Now, there are tons of different types of Robocall scams.<\/p>\n Some involve messages that offer you money:<\/p>\n Others will make other false promises such as there\u2019s an opportunity to:<\/p>\n Some robocalls even call and threaten you with fines, jail or lawsuits if you don\u2019t pay them money. For example, the call may appear to be from the IRS and will try to get you to pay taxes \u2013 we discussed this particular scam in The Tax Scam section above.<\/p>\n If a robocall is not entirely informational, then it is likely that it is an illegal phone call that someone is using to try to scam you out of money or personal information.<\/p>\n Whatever the message says, as with pretty much all scams, the main aim is to steal your cash or to find out important personal information about you \u2013 such as bank details, date of birth, and social security numbers.<\/p>\n This one is very prevalent in our society right now.<\/p>\n In fact, in February 2019 alone, there were more than 4.9 million robocalls made.<\/p>\n This is according to stats from the Robocall Index<\/a> from YouMail (this company produces software that blocks robocalls).<\/p>\n The company also reports that almost half of all robocalls are scams.<\/p>\n So this really is a scam that many of us will come across.<\/p>\n That\u2019s why it\u2019s so important to be aware of it.<\/p>\n When you get an unwanted phone call that just plays an automated message, then hang up.<\/p>\n Do not press any buttons.<\/p>\n Don\u2019t ask to speak to someone.<\/p>\n It can be tempting to ask to speak to someone to be taken off of a call list, but it won\u2019t help to stop the robocalls.<\/p>\n In fact, any willingness to engage could make you appear to be a good target for these scammers, and they might call you more as a result.<\/p>\n Since it is so widespread, there are lots of ways that you can report robocalls, and help organizations to put a stop to these scams.<\/p>\n One place to start is with the National Do Not Call Registry<\/a>.<\/p>\n It\u2019s a registry designed to stop telemarketing calls.<\/p>\n You can register your home number and your mobile phone for free.<\/p>\n It\u2019s important to note that since most scammers aren\u2019t sticklers for legalities, many of them will still call numbers on the National Do Not Call registry.<\/p>\n It\u2019s still a good step to take though \u2013 because if you do get an unwanted call you can report the company to the FTC for contacting a number that was on the registry.<\/p>\n But, registering your numbers with the National Do Not Call registry is not the only step that you should take.<\/p>\n Since some robocallers will practice caller ID spoofing, you can report them to the Federal Communications Commission (FCC).<\/p>\n You can get in touch with the FCC online here<\/a>.<\/p>\n Or you can give them a call at 1-888-225-5322.<\/p>\n Finally, you should report robocalls to the Federal Trade Commission (FTC).<\/p>\n You can do this online here<\/a>.<\/p>\n Or you can contact the FTC by phone on 1-877-382-4357.<\/p>\n This is another particularly low scam, even for fraudsters.<\/p>\n These scams take advantage of people\u2019s generosity for their own profit.<\/p>\n Scammers set up fake organizations in order to get money out of people.<\/p>\n The victim thinks that they are making a donation to a charitable cause when really they are being scammed out of their money.<\/p>\n Many of these scams take advantage of tragedies and disasters \u2013 as we said, this is low even for scam artists.<\/p>\n The scammer will often use a charity name that\u2019s similar to a well-known, reputable, and real charity.<\/p>\n And, they will likely try to rush you into making a donation, so that you don\u2019t have time to properly research the charitable organization that you\u2019re supposedly talking with.<\/p>\n Another thing that some scammers do is they thank you for a donation that you never made in order to trick you into paying them.<\/p>\n Before you donate any money to a charity, you need to check whether or not it is a legitimate organization.<\/p>\n There are a few organizations that you can contact or use to research whether a charity is trustworthy:<\/p>\n There are also some signs of a charity scam that you can watch out for \u2013 avoid any charity or fundraiser that:<\/p>\n The FTC has a great guide on donating to charity and avoiding charity scams.<\/p>\n It includes lots of resources for researching charities and it gives you a charity checklist that includes the steps you should take before making a donation.<\/p>\n Check out the FTC\u2019s Before Giving to a Charity Guide here<\/a>.<\/p>\n You can contact your state consumer protection office \u2013 it will be able to accept and investigate your complaint. You can contact your state consumer protection office here<\/a>.<\/p>\n You can file a complaint with the FTC.<\/p>\n Just visit this page<\/a> of the FTC website.<\/p>\n Then you\u2019ll see the \u201cOther Section\u201d area.<\/p>\n At the bottom of this section it says \u201cclick here for more options (page 1 of 2) \u2013 click on this and you will see a page that includes a link called \u201ccharitable solicitations,\u201d which you can click to report a charity scam.<\/p>\n If the suspected scam is related to a natural disaster, then contact the National Center for Disaster Fraud here<\/a>.<\/p>\n Ticket scams are another common scam.<\/p>\n Scammers use tickets as bait to steal money from people.<\/p>\n Scammers put up tickets for sale online \u2013 but these tickets are fake.<\/p>\n A consumer, not knowing that the tickets aren\u2019t legitimate, pays for them.<\/p>\n Then, the consumer never receives the tickets at all, or the ones they do receive are counterfeit and won\u2019t get them into the event that they are supposed to.<\/p>\n Scammers often run ticket scams on events that are sold out and are in high demand.<\/p>\n Ticket scammers know that if an event is popular, people will struggle to get tickets, and they take advantage of this by providing counterfeit tickets.<\/p>\n Much of the time, these scammers use tricks to make their counterfeit tickets appear legitimate.<\/p>\n For example, they will use logos and branding that look official and like those used by real ticket companies. They\u2019ll also use forged barcodes from real ticket companies.<\/p>\n Because they know that these tickets are in high demand, scammers will charge prices much higher than the face value of a ticket.<\/p>\n Scammers sell fake tickets for a variety of events, such as:<\/p>\n There are a few things that you can do to avoid becoming a victim of a ticketing scam:<\/p>\n You can report ticket scams in a number of ways:<\/p>\n There are actually a lot of ways you can get free money from the government<\/a>, including college scholarships and grants<\/a>. But sadly, scammers also use this as an opportunity to commit frauds.<\/p>\n As with most of the scams on this list, this one involves the scammer pretending to be someone they aren\u2019t in an attempt to steal money from people.<\/p>\n With this scam, a person calls your house and says that they have a free government grant to award to you.<\/p>\n They say this grant is for college, home repairs or other expenses.<\/p>\n The grant is of course fake.<\/p>\n The person asks for your checking account information so that they can deposit the grant money into your account or take out a one-time processing fee.<\/p>\n The scammer just wants to steal your cash and does not have a grant to offer.<\/p>\n The government doesn\u2019t really give grants to individuals \u2013 most of the time grants are given to state and local governments, universities and other organizations in order to fund research and projects that benefit the public.<\/p>\n So if someone is calling up your house and offering you a grant, then it is likely a scam.<\/p>\n Keep these tips in mind if you want to avoid being the victim of a government grant scam.<\/p>\n You can file a complaint with the FTC online here<\/a>.<\/p>\n Also, you can call the FTC to report a government grant scam on 1-877-382-4357.<\/p>\n You can also register with the National Do Not Call Registry, which we mentioned above, and reduce the number of telemarketing calls that you get.<\/p>\n As we said above though, this doesn\u2019t mean that you still won\u2019t get calls from these scammers.<\/p>\n But, it\u2019s totally free to register your home phone and mobile phone numbers with the National Do Not Call Registry<\/a>.<\/p>\n Working from home and having your own business is a dream for a lot of people. And while there are tons of legitimate and real work from jobs<\/a> out there, there are also a lot of scams disguised as real small businesses and work at home jobs.<\/p>\n Pyramid schemes are some of the most well-known scams that unfortunately a lot of people still fall for.<\/p>\n Pyramid schemes disguise themselves as legitimate business opportunities.<\/p>\n But, they are scams and illegal in the US.<\/p>\n Pyramid schemes do not provide any tangible, for-value goods or services. And that\u2019s the main difference between Pyramid Schemes and lawful MLMs<\/a> (although a lot of MLMs border on the side of being a pyramid scheme themselves!)<\/p>\n Instead, they work by recruiting an increasing number of members at different levels.<\/p>\n These schemes promise new recruits that they\u2019ll get profits for enrolling other members into the scheme.<\/p>\n New recruits have to pay an upfront cost, and this is where longer-standing members get their money.<\/p>\n These schemes need a constant flow of new participants to stay afloat.<\/p>\n Usually, pyramid schemes are marketed as multi-level marketing programs \u2013 and other types of businesses that sound legitimate.<\/p>\n Basically, these schemes require new recruits to make payments and then use new recruit\u2019s payments to provide \u201cprofits\u201d to members who\u2019ve been part of the scheme for a longer period.<\/p>\n In order to pay earlier investors, pyramid schemes need to keep recruiting members, so they are always looking for new people to scam.<\/p>\n Pyramid schemes always fail \u2013 it\u2019s just mathematically guaranteed!<\/p>\n The pyramid may start with just one person who then recruits 10 people to the level below them, and requires them to invest money.<\/p>\n Then, those ten people all need to recruit new members in order to form the next level and get the profits they were promised.<\/p>\n The pyramid grows bigger and bigger, and each level has an exponentially higher number of members.<\/p>\n As long as the lowest level stays bigger and wider than the upper levels, the pyramid will remain stable, but once the lowest level starts to wane in recruits, the whole pyramid collapses.<\/p>\n Pyramid schemes deceive people by promising them that by \u201cinvesting\u201d their money into the scheme, they will make more money.<\/p>\n But that\u2019s not how pyramid schemes work.<\/p>\n These schemes do not actually create any wealth for their members \u2013 they don\u2019t sell products or services and they don\u2019t invest your money into anything that can actually generate returns.<\/p>\n Instead, the scheme relies on getting more and more money from an increasing amount of recruits at the bottom levels of the triangle.<\/p>\n The cycle cannot sustain itself, and most, if not all, of the people in the pyramid, will lose their money. It\u2019s the people nearest the bottom of the scheme who are the most vulnerable, as it will be harder for them to find new recruits to get the money they need to pay off the previous level of recruiters.<\/p>\n Here are a few things you can do to ensure that you don\u2019t become a victim of a pyramid scheme.<\/p>\n The US Securities and Exchange Commission has an article about the warning signs of a pyramid scheme, which you should check out here<\/a>.<\/p>\n You should definitely check out the article so that you know what the signs of a pyramid scheme are. A lot of people don\u2019t realize that the business opportunity they signed up for is actually a pyramid scheme.<\/p>\n This because many of these scammers make out that they are offering legitimate business opportunities, some of which can seem quite tempting.<\/p>\n But it\u2019s a scam and the business will never generate any revenue \u2013 instead, a lot of people are scammed out of investing their money into an unsustainable and illegal scheme that will result in financial losses.<\/p>\n You can report pyramid schemes to your state consumer protection office<\/a>.<\/p>\n Also, you can report pyramid schemes to your state attorney general<\/a>.<\/p>\n This is one of the more threatening scams on this list.<\/p>\n Basically, the scammer calls you pretending to be from a debt collection agency and tries to steal your money.<\/p>\n With this type of scam, you get a call from what appears to be a debt collector.<\/p>\n The person says that you owe debt on a loan.<\/p>\n This might be for a loan that you\u2019ve never received or on loans that you did receive, but for amounts you don\u2019t owe.<\/p>\n Basically, scam artists pose as debt collectors.<\/p>\n Often, this is a hard scam to detect.<\/p>\n It can be difficult to tell the difference between a legitimate debt collector and a fake one.<\/p>\n In some cases, a fake debt collector might even have some of your personal information, such as your bank account number.<\/p>\n Often, fake debt collectors will try to pressure you into paying, using scare tactics to do so.<\/p>\n They might threaten to have you arrested or threaten to report you to a law enforcement agency.<\/p>\n Like we said before, knowing the difference between a regular debt collector and a fake one can be tough.<\/p>\n There are, fortunately, things you can do to ensure that you stay safe.<\/p>\n Here are a few signs that it\u2019s a debt collection scam \u2013 the caller:<\/p>\n Here\u2019s what you should do if think that a caller may be a fake debt collector:<\/p>\n You can report debt collector scams to your state attorney general<\/a>.<\/p>\n Also, you can report debt collection scams to the FTC \u2013 you can do this online here<\/a>.<\/p>\n Computers do sometimes have viruses or technical issues. That\u2019s why we have anti-virus software and computer technicians.<\/p>\n But, scammers, unfortunately, make up computer issues in an effort to steal money from people.<\/p>\n This is one of the most popular scams out there right now \u2013 with Microsoft<\/a> estimating that in 2015, around 3.3 million people (many of them seniors) were the victim of this scam. The victims were estimated to have been conned out of $1.5 billion.<\/p>\n Tech scams are generally conducted in one of two ways:<\/p>\n Let\u2019s start with how the tech scam works when it\u2019s conducted over the phone:<\/p>\n You get a random phone call from a person that claims to be a tech support agent from a tech company like Microsoft or Windows.<\/p>\n The person says that viruses have been detected on your computer. Then the person usually tries to get hold of your personal information and data or extort money from you.<\/p>\n They do this in a couple of different ways.<\/p>\n One way involves the scammer saying that since viruses have been found on your computer, in order to protect your data, you have to visit a certain website and follow its instructions immediately.<\/p>\n When you visit that site, you might even see a fake message on the screen that shows viruses are being detected and removed.<\/p>\n But, this isn\u2019t the case.<\/p>\n In reality, malware is being installed on your PC.<\/p>\n Once installed, this malware allows scammers to steal sensitive data, like your usernames and passwords.<\/p>\n The scammer may even hold your data for ransom or use your webcam to spy on you.<\/p>\n Or the scammer might say that you need to give them remote access to your computer in order to fix the problems they\u2019ve found with your computer.<\/p>\n Then, they ask you to pay to fix a problem that didn\u2019t exist in the first place.<\/p>\n Like we said above, tech scams can be conducted over the phone, but they are also rife online.<\/p>\n Online, these tech support scammers may try to get your attention with a pop-up window.<\/p>\n This pop-up just appears on your computer screen and it usually looks like a legitimate error message.<\/p>\n It may even look as though it\u2019s from your operating system or anti-virus software.<\/p>\n And, it may include logos from reputable companies and websites.<\/p>\n The message basically warns you that there\u2019s a security issue on your computer and you need to call a number to get help.<\/p>\n Or it may say that there\u2019s a virus on your computer and to click a link to remove it from your PC.<\/p>\n Both of these are attempts to scam you out of money or to install malware on your PC to steal your personal data.<\/p>\n If you receive a phone call that you weren\u2019t expecting from someone who claims to be from a tech company and says that there is a problem with your computer, then hang up.<\/p>\n It is a scam.<\/p>\n Companies like Microsoft do not contact their customers directly about viruses.<\/p>\n If you have a virus on your computer, your anti-virus software is what detects and solves the issue.<\/p>\n An actual agent would never call your house unless you requested them to.<\/p>\n And, pop-ups that you see on websites that tell you that you have a virus or issue on your PC should also be ignored.<\/p>\n Just make sure that you have up to date anti-virus, anti-spyware, and anti-malware software installed on your computer.<\/p>\n And if your computer does have an issue, contact a legitimate company to fix it.<\/p>\n You can report tech scams to the Federal Trade Commission.<\/p>\n If you want to report a tech scam to the FTC online, then visit this page<\/a>.<\/p>\n Aside from reporting tech scams online, you can also call the FTC on 1-877-382-4357.<\/p>\n The last scam on our list is another popular one: the home improvement scam.<\/p>\n This scam involves a person contacting you \u2013 this is usually in-person, right on your doorstep, but it can also happen over the phone \u2013 and offering to do home improvement work for you.<\/p>\n They seem legitimate, and like many of us, you might need some work doing on the house, and so you agree.<\/p>\n The person asks you for a deposit, which doesn\u2019t seem too strange, but then they never come to do the work.<\/p>\n It was a scam.<\/p>\n These people are not home improvement service providers.<\/p>\n They are scam artists who just want to con people out of money \u2013 they have no intention of actually doing any home repairs, maintenance or any work at all.<\/p>\n Whenever you\u2019re going to part with money, you should do some research first.<\/p>\n If someone comes to your door to offer home improvement services, then ask to see their card.<\/p>\n You can then research their company online.<\/p>\n Use websites like the Better Business Bureau<\/a>, and other trusted platforms to check whether the business is legitimate.<\/p>\n If you are thinking about hiring a contractor, then get written estimates from several places \u2013 and keep in mind that the lowest quote may not be the best quote.<\/p>\n Home improvement scammers tend to:<\/p>\n If you see any of these signs, then DO NOT work with this contractor.<\/p>\n You can report a home improvement scam to the FTC online here<\/a>.<\/p>\n If you want to speak to someone about it over the phone, then you can call the FTC at 1-877-382-4357.<\/p>\n Above, we\u2019ve listed the top scams that are around right now.<\/p>\n The problem is, successful scammers are always coming up with new ways to scam people out of their money (they\u2019re inventive like that).<\/p>\n This means that new scams pop up and, unfortunately, fool some unsuspecting people.<\/p>\n That\u2019s why it\u2019s a good idea to do a few things to keep yourself protected, regardless of what the financial scam is.<\/p>\n Here\u2019s what to do to avoid scams in general.<\/p>\n Aside from your bank who might ask you to pay an annual fee for your credit card, no other place\/person\/organization should ever ask you to pay a fee in order to get money.<\/p>\n Have you noticed that while all of the scams we listed above are different, many of them had one thing in common?<\/p>\n They ask you to pay a fee.<\/p>\n Regardless of the back story, many scams are based on a message of \u201cyou can have all of this cash if you just pay us this small fee\u201d.<\/p>\n It\u2019s an admin fee, or a processing fee or a tax fee etc.<\/p>\n So if you ever get an email, a letter, a text, a phone call or any other correspondence that offers you money if you pay a fee, then avoid it.<\/p>\n No reputable bank, store, or company would email you or call you to ask you for your credit card or debit card information.<\/p>\n Only provide financial information if you have contacted your bank (using its legitimate\/official number) directly.<\/p>\n Optimism and trust are two important qualities, but when it comes to money, it\u2019s better to be a skeptic.<\/p>\n If someone is offering you a ton of money for no reason, then you need to question why?<\/p>\n Why would a stranger offer you money?<\/p>\n The truth is, they probably wouldn\u2019t.<\/p>\n As they say, there\u2019s no such thing as a free lunch.<\/p>\n And, it\u2019s entirely true in matters of money.<\/p>\n Just be aware of offers that seem too good to be true, as they usually are.<\/p>\n Many scammers will pretend to be a person that you\u2019d trust, like a government official, a charity, or a company that you do business with.<\/p>\n If you get an unexpected request, whether it is over the phone, in a text or in an email, then do not send money or give out your personal information.<\/p>\n While the internet has given con artists more opportunities to scam people, it can actually help you to avoid becoming the victim of a scam.<\/p>\n Open up your favorite search engine, and then type in a company or product name, followed by words like \u201cscam,\u201d \u201ccomplaint\u201d or \u201creview.\u201d<\/p>\n This can help you to determine whether something is a scam or not.<\/p>\n You can even search for phone numbers online and see whether other people have reported that these numbers are scams.<\/p>\n Scammers use technology to fake their caller ID information.<\/p>\n This means that the name and location displayed on your caller ID isn\u2019t always accurate.<\/p>\n By following these tips, you should keep yourself safe from most of the scams that are out there, regardless of what fresh ones these fraudsters come up with.<\/p>\n Above, we\u2019ve mentioned some of the most common financial scams, and how to protect yourself.<\/p>\n But, what if you\u2019ve already been scammed out of money?<\/p>\n What do you do?<\/p>\n There\u2019s a lot of prevention out there for financial fraud, but victims don\u2019t always get restitution. That\u2019s not to say, however, that if you have been scammed out of money that you won\u2019t be able to get it back.<\/p>\n Our first tip if you suspect that you, or somebody that you know, have been the victim of a financial scam, is to report the crime and seek assistance as soon as possible.<\/p>\n You should not be embarrassed or ashamed to admit that you\u2019ve been scammed.<\/p>\n These scammers prey on people and exploit their vulnerabilities.<\/p>\n It happens to millions of people, so you aren\u2019t alone.<\/p>\n There are, fortunately, many organizations out there that can assist victims of financial fraud.<\/p>\n You will be able to report the fraudster.<\/p>\n Above, we\u2019ve listed lots of places where you can report common scams.<\/p>\n Places like the FTC use consumer reports to tackle scam artists.<\/p>\n But, most organizations don\u2019t work on individual cases.<\/p>\n This means that unfortunately if you have sent any money, depending on the method you used to deliver the funds, you may not be able to recover your money from scammers.<\/p>\n Wire transfers, for example, aren\u2019t reversible.<\/p>\n If you sent the money using a credit card, however, then your credit card company may be able to recover the funds.<\/p>\n However, there are places that do help with individual cases and may allow you to get back the money you\u2019ve been scammed out of.<\/p>\n If you\u2019ve been scammed and need assistance getting your money back, check out the following resources:<\/strong><\/p>\n Being scammed out of your money is an awful thing and it really can happen to anyone.<\/p>\n And, since scammers are always finding new ways to scam people out of their money, it can be hard to know what to do to keep your cash safe.<\/p>\n As we mentioned above, it\u2019s all about being aware of those offers that just don\u2019t seem quite right, and it\u2019s being knowledgeable about the types of scams that are out there.<\/p>\n We\u2019ve included the bigger and more common financial scams, but keep in mind that these fraudsters are always coming up with new ways to cheat people out of their money.<\/p>\n So, it\u2019s likely that new scams will appear in the coming years.<\/p>\n That\u2019s why it\u2019s important to keep our tips in mind as well.<\/p>\n And, remember, if you\u2019ve been a victim of financial fraud \u2013 don\u2019t be ashamed.<\/p>\n Report the crime.<\/p>\n You may be able to get some of your cash back and you can help the authorities to shut down these scammers \u2013 and if you do this you can prevent somebody else from becoming a victim of a money scam.<\/p>\n So avoid these top financial scams, and follow our tips to keep your money safe.<\/p>\n If you have any tips on avoiding scams or want to share your experience with money scams, then please leave a comment below.<\/p>\n<\/div>\n\n
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\nJoin Smart Panel and share your experince on how you use the internet. They pay you $5 for installing their free app & $5 a month just for keeping it, plus loyalty bonus every three months! .<\/p>\nHow the 419 Scam works<\/h3>\n
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How to protect yourself from the 419 Scam<\/h4>\n
How to report 419 Scams<\/h4>\n
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2. The Phishing Scam<\/h2>\n
How Phishing Scams work<\/h3>\n
How to protect yourself from a Phishing Scam<\/h4>\n
Where to report Phishing Scams<\/h4>\n
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3. The Pre-Approval Scam<\/h2>\n
How Pre-Approval Scams work<\/h3>\n
How to protect yourself from the Pre-Approval Scam<\/h4>\n
How to report a Pre-Approval Scam<\/h4>\n
4. The Fake Check and Money Transfer Scam<\/h2>\n
How the Fake Check and Money Transfer Scam works<\/h3>\n
How to protect yourself from the Fake Check and Money Transfer Scam<\/h4>\n
How to report Money Transfer\/Fake Check Scams<\/h4>\n
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5. The Lottery Scam<\/h2>\n
How the Lottery Scam works<\/h3>\n
How to protect yourself from Lottery Scams<\/h4>\n
Where to report Lottery Scams<\/h4>\n
6. The Debt Relief Scam<\/h2>\n
How the Debt Relief Scam works<\/h3>\n
How to protect yourself from Debt Relief Scams<\/h4>\n
How to report Debt Relief Scams<\/h4>\n
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7. The Grandparent Scam<\/h2>\n
How the Grandparent Scam works<\/h3>\n
How to protect yourself from the Grandparent Scam<\/h4>\n
How to report Grandparent Scams<\/h4>\n
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8. The Tax Scam<\/h2>\n
How the Tax Scam works<\/h3>\n
How to protect yourself from Tax Scams<\/h4>\n
How to report Tax Scams<\/h4>\n
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9. The Romance Scam<\/h2>\n
How the Romance Scam works<\/h3>\n
How to protect yourself against Romance Scams<\/h4>\n
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How to report a Romance Scam<\/h4>\n
10. The Robocall Scam<\/h2>\n
A quick note \u2013 some robocalls are legal<\/h4>\n
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How Robocall Scams work<\/h3>\n
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How to protect yourself against Robocall Scams<\/h4>\n
How to report Robocall Scams<\/h4>\n
11. The Charity Scam<\/h2>\n
How Charity Scams work<\/h3>\n
How to protect yourself against Charity Scams<\/h4>\n
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How to report a Charity Scam<\/h4>\n
12. The Ticket Scam<\/h2>\n
How Ticket Scams work<\/h3>\n
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How to protect yourself against Ticket Scams<\/h4>\n
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How to report Ticket Scams<\/h4>\n
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13. The Government Grant Scam<\/h2>\n
How the Government Grant Scam works<\/h3>\n
How to protect yourself against Government Grant Scams<\/h4>\n
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How to report a Government Grant Scam<\/h4>\n
14. The Pyramid Scheme<\/h2>\n
How Pyramid Schemes work<\/h3>\n
How to protect yourself against Pyramid Schemes<\/h4>\n
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How to report a Pyramid Scheme<\/h4>\n
15. The Debt Collector Scam<\/h2>\n
How Debt Collector Scams work<\/h3>\n
How to protect yourself against Debt Collector Scams<\/h4>\n
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How to report Debt Collector Scams<\/h4>\n
16. The Tech Scam<\/h2>\n
How Tech Scams work<\/h3>\n
On the phone<\/h5>\n
Online<\/h5>\n
How to protect yourself against Tech Scams<\/h4>\n
How to report Tech Scams<\/h4>\n
17. The Home Improvement Scam<\/h2>\n
How the Home Improvement Scam works<\/h3>\n
How to protect yourself against the Home Improvement Scam<\/h4>\n
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How to report a Home Improvement Scam<\/h4>\n
Tips on How to Avoid Money Scams<\/h2>\n
Never pay money in order to get money<\/h3>\n
Don\u2019t give out your credit or debit card information<\/h3>\n
If something seems too good to be true \u2013 it usually is!<\/h3>\n
Don\u2019t give out money or personal information in response to an unexpected request<\/h3>\n
Search Online<\/h3>\n
Don\u2019t believe what\u2019s displayed on your Caller ID<\/h3>\n
What to Do If You\u2019ve Been Scammed<\/h2>\n
How to report scams<\/h3>\n
How to get your money back after a scam?<\/h3>\n
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Closing Thoughts<\/h2>\n