You work hard for your money and you likely want to keep as much of it as possible. You may be wondering how to keep your money safe and avoid financial scams as you navigate through this ever-changing and increasingly challenging world.
With so many alternative ways of earning an income, there are equally as many ways scammers work to steal money from you. Scammers are getting more bold and sneaky too, so it’s easy to unknowingly get caught up in a scam before you realize what’s happened. Here are a few ways to help you Avoid Financial Scams And Keep Your Hard-Earned Money Safe.
Financial Scams to Look for Out in the Community
Credit card skimmers are devices that criminals attach to ATMs, gas pumps, and any other payment terminals to steal your card’s information. Skimmers come in all shapes, sizes, and varying degrees of complexity. Security National Bank of South Dakota offers some tips and things to watch out for when you’re paying for gas at the pump. Keep an eye on security labels, bulky card readers, and even hidden cameras; the site offers a comprehensive list of things to look out for with images to help you avoid financial scams.
How to Avoid Financial Scams on Social Media
The beauty of social media is that anyone, anywhere in the world can start a business and be up in running with just a few clicks. While the internet provides a significant resource for entrepreneurs looking to start their online business, it also lends itself to scammers who prey on unsuspecting clients looking for anything from website development to business coaching.
Many of us are looking to get started in online business and as a result, reach out to coaches and mentors to help us on our entrepreneurial journey. It’s easy though to get caught up in the bells and whistles, especially when someone talks a good game offering to coach us in our journey.
An easy way to ensure you’re dealing with a top-notch coach is to ask for referrals. Any good coach will have testimonials and should be willing to provide them to you so you can determine whether or not you want to work with them. Fortunately, many coaches will build their brand on social media and offer enough free content so you know they’re truly legit before you send them any money and get started on your coaching program. Fully research any mentor or coach before agreeing to work with them and you’ll be on your way to reaching the goals you’ve set for yourself.
How to Avoid Social Security Administration Scams
A few years ago the Social Security Administration (SSA) and the Federal Trade Commission (FTC) issued a warning to consumers about Social Security telephone scams where a caller would pretend to be from the SSA to gain access to your social security number. Scammers will call and tell you that your social security number was involved in a scam and ask you to repeat your number; once they’ve got your number, they can open credit in your name. The FTC offers the following helpful advice to avoid financial scams involving your Social Security Number:
- The Social Security Administration will never call and ask for you to tell them your social security number
- Never give out your social security number, do not confirm the last four digits, and do not give out a bank account or credit card number over the phone
- Never wire money when asked to do so via phone call. SSA will not reach out to you in this way
Avoid Financial Scams That Involve Phishing
Becoming a victim of a phishing scam is all too common. In an age when many of us are working, shopping, and interacting on our smartphones, it is especially common. Phishing is a digital attack on a user that works to steal their data, logins, and credit card numbers. Victims are often unaware they’ve been scammed until it’s too late. A scammer will pass themselves off as a trusted company or organization. They then trick their victims into opening a text message, DM, or email and inputting their personal financial information in the message. From there, the scammer can easily access financial information.
There are ways to avoid phishing scams. Never click on a link in an email or text message if you’re unsure of the sender. Legitimate companies will send emails and messages from their official domain names. Watch the domain names that are sending you messages; if a large corporation is sending an email from a Gmail account, it’s likely a scam. Security Metrics website offers 7 additional ways to recognize and avoid a phishing scam.
Beware of MLMs That Focus Solely on Recruiting vs. Selling
By now, everyone has either heard of or watched LulaRich on Amazon Prime. The 4-episode documentary chronicles the rise and ultimate downfall of the buttery-soft legging company. The company grew too fast, too soon, and managed to scam thousands of women. Families lost out on time, energy, and savings over the course of 5 years. The company at first, did have a good run. Several resellers were making tens of thousands of dollars each month. Sadly, countless others lost their savings and are still in debt, paying back what they invested, years later.
This is not to say that all multi-level marketing (MLM) companies are bad. There are opportunities, but those who find success are the ones who continually recruit team members; you’re never truly done with the opportunity. In order to continue to make money, you must continue to build your team. Here are a few ways to avoid financial scams when dealing with MLMs:
- Be sure to research the company, other distributors, and the opportunity full before spending any money
- Know the refund policy if this turns out to be something you’re unable to continue
- Read and fully understand the contract before you sign anything
- Ensure that the product or service being sold is something you can fully stand behind; without a quality product you don’t have an MLM, you have a pyramid scheme
Knowing who to trust and when can be challenging. With a little bit of foresight, a lot of research, and care when dealing with people online and in person, you can avoid financial scams.
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