Understanding Common Financial Cons, Scams, and Fraud Schemes

Common Cons, Scams, and Fraud Schemes - Protecting Yourself and Your Money

How do you know when you are the receiving end of a con, scam or fraud?  There are often warning signs:

• The offer sounds too good to be true.  If it sounds too good to be true, it probably is.
• Unsolicited contact—you receive a phone call, email, letter, or even someone at your front door selling a product or service.
• High-pressure sales tactics are used—the offer is good for a limited time.
• There are requirements of money or financial information upfront.
• Results and returns are guaranteed.
• Information is withheld.
• You are told that others like you or in your neighborhood have purchased the same product or service. Often these stories are very convincing.
• You call a number provided, and it goes straight to voicemail.
• There is reluctance to provide information in writing or the details are sketchy and vague.
• You are told “not to worry about it,” when you ask questions.
• You are not given time to read documents if the situation requires you to sign something.
• You are asked to sign documents that have information that has not yet been filled in.
• Paperwork includes a clause that requires you to give up your right to sue.
• There is no physical address for a business; only a P.O. box is provided.
• The contact information seems incomplete.

And most importantly—something just doesn’t feel right.  In the case of a phone call, the solution is simple—just hang up the phone.  Delete emails or send them to the trash file.  If in person, ask questions.  Keep asking questions until you believe that you fully understand the offer that you are presented.

Be sure to protect your private identifying information.  Information such as your birth date, social security number, bank account or credit card numbers, or even your health insurance policy number can all be used to con you out of money and benefits.  Never give any of this information if someone contacts you with an unsolicited offer. Never give this information to anyone over the phone, in email, or even in the mail, unless you are sure about the company you are dealing with.

Finally, order your credit reports from each of the three credit reporting agencies (Equifax, Experian, Trans Union) each year and read them for accuracy.  Report any perceived errors of your personal information or accounts, as this could be a sign that your identity has been stolen.  Keeping your personal information safe will give con artists less opportunity to take what’s yours.