Common Financial Scams And How To Avoid Being A Victim

financial scam

financial scam

In today’s world and with the economy in the shape that it is in many people are becoming victim of financial scam artists. It is sad to say that a majority of the victims are people who are older in age. This is unfortunate but it is possible that if you have been forewarned about the scam that it is possible that you will not be one of the victims whose bank account ultimately ends up drained by a con. This article will help to explain several of the different types of common scams that are occurring and affecting many of us including the elderly.

The Grandparents Scam
If you have grandchildren you might be a target of this scam. After all everyone wants to help their grandchildren if they are in trouble. With the scam the victim will receive a telephone call from someone pretending to be his or her grandchild. He or she will pretend that they are in some sort of trouble and will need money for rent, bail or for a way to get back into town. The scammer will request the grandparent send the money through a wire transfer such as Western Union.

The good news is that many grandparents will often recognize that the child is not one of their own grandchildren and will hopefully hang up and call the police. However if you happen to get a telephone call such as this it is important to hang up and verify the information before sending the money.

Investment Scams
There are always different scams going around that involve you investing some of your hard earned money. It could be anything from a pyramid scheme to someone trying to sell you a piece of land or a once in a lifetime opportunity. There will always be that one person who is out to take advantage of you.

It is often a good idea to be wary of these opportunities. A good rule to remember is that if it sounds too good to be true that it probably is. You should do your research on any investment that you want to invest in.

Scams Through Email
There are many different types of scams that can happen through email and unfortunately the numbers of these scams are growing everyday. There are emails that you might receive that state that someone will be receiving a small fortune just by helping he or she out. There are also scams that are known as the lottery scam. With both of these scams you are promised money just by sending the other party money. However the money that you are promised never arrives. Often times these scams are used to obtain money directly from you or they are known to be phishing scams where they are obtaining your personal information and passwords for your financial accounts.

To avoid getting involved in one of these scams you should not open any emails where you do not know the sender. It is also very important that you do not send money or give out any personal information to someone you do not know.

Scams Involving Charities
It is hard to believe it but people who are trying to donate to charities often become victims of a scam. There are many callers who claim that they are with a certain charity and they are collecting money to help with a disaster to help victims however later on after donating that the money went directly to the person’s bank account.

If you want to donate to a charity you should contact them directly and do not make donations to someone who calls you directly.

There are many scams that are out there and affecting many of us especially the elderly. It is important that before you send money or give personal information away that you research whom you are giving it to. It is better to be safe than sorry when protecting yourself and your bank account.

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About the Author: Jay

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