How to Avoid Financial Scams

Posted on Friday 07 September 2018


Financial scams are more prevalent than ever in today's world. With the rise of the internet and other forms of technology, dishonest people are getting more crafty in their maneuvers to steal money from hardworking, unsuspecting individuals. For this reason, it’s important to be aware of red flags.

Unfortunately, many individuals have fallen victim to scams and fraudsters. However, you can learn from some of these instances to avoid falling for financial scams. Therefore, knowing what to be aware of, what not to click on, and who not to share personal information with can save you hundreds, or thousands, of dollars.

Know the Basics

Although the specifics of scams vary from fraudster to fraudster, they tend to have similar templates. U.S. News explains that the majority of financial scams usually take these formats:

Individuals who are in the business of laundering money from other people regularly employ scare tactics. They prey on the perceived vulnerabilities or weaknesses of their targets. A scammer may also pose as an IRS official or a tax collector, conning people into investing in phoney charities. Scammers may also email forms to targets, asking them to fill in personal information. In worse scenarios, scammers may form insincere relationships with their targets via online dating websites and subsequently ask for money. This is why you need to verify websites and learn to manage your time, especially while online.

Senior citizens are easy prey for most of today's fraudsters since they are likely to be slow with technology.

Here's the simple breakdown:

  • IRS
  • Taxes
  • Investing
  • Credit cards
  • Banks
  • Online dating
  • Charity
  • Ransomware
  • Real estate
  • Emails
  • Seniors

Take Precautions

The ability to detect scams is important. Choosing to be proactive is also of equal importance. Scammers are evolving at the same pace as technology. It's impossible to know what method they will employ next. However, there are key rules.

First, if something online sounds too good to be true, then it probably is. For instance, you may be browsing and a notification randomly pops up telling you you have won the latest iPhone. Sure, this sounds like a stroke of good luck, but you need to look away. It's a sure sign of a lurking scammer. You also need to be really cautious about what you choose to click on as you use the internet.

Many scammers and hackers employ ransomware as a means of gaining access to your critical files. These people usually then demand to be paid a fee in exchange for returning the information on these files.

This is why researching agencies, being wary of sharing personal information, and thinking twice before downloading certain attachments can amount to a world of difference.

Conclusion

Financial scams are all around us. Countless people have fallen victim to them and many others will continue to. However, by knowing some of the most basic strategies of fraudsters, you can take the appropriate precautions. This can help you protect the money you have worked hard for. If you are desperately in need of money, rather than falling for such scams, it’s best to apply for rapid cash payday loans instead.

Authored by Gabrielle Renee Seunagal