Money scams are unfortunately all too common. You may be thinking how can anyone fall for them? However, American consumers reported losing more than $5.8 billion to fraud last year, up from $3.4 billion in 2020 (an increase of more than 70%), according to the Federal Trade Commission. Almost 2.8 million consumers filed a fraud report to the agency in 2021 — the highest number on record dating back to 2001, according to the FTC.
Here are six of the most deceptive money scams to look out for. Be sure to protect yourself against these scams by being aware of them and knowing how to spot them. If you think you may have been scammed, report it to the authorities immediately.
The Royal Prince (Advance Fee) email scam
You’ve probably seen the emails before. They usually start with a sob story about how a wealthy prince or member of a royal family needs help moving millions of dollars out of the country. In exchange for your help, the prince promises to give you a percentage of the money. If you’ve ever wondered why anyone would fall for something like this, you’re not alone. Hundreds of people are scammed out of thousands of dollars every year by these so-called princes. So, how does the scam work? And why do people keep falling for it? Keep reading to find out.
The scammer will send an email to their target pretending to be a wealthy Royal prince or member of a royal family. In the email, they will explain that they need help moving millions of dollars out of their country. They will promise to give the recipient a percentage of the money in exchange for their help. The recipient is then instructed to wire money to cover “expenses” related to the transfer. Once the money is sent, it’s simply gone; there’s no way to track it or get it back.
In some cases, the scammer may try to string their victim along by asking for more and more money as new “expenses” arise. They may even go so far as to send fake documents purporting to be from banks or lawyers in an attempt to make the scam seem more legitimate.
Why People Fall for It
While it may seem impossible that anyone could fall for something like this, hundreds of people do every year. There are a few factors that contribute to this. First, many people simply don’t know that this type of thing happens. They think that if it were possible to scam someone out of millions of dollars, they would have heard about it before. Second, scammers are getting increasingly sophisticated in their methods and are becoming better at creating fake documents and websites that look legitimate. Finally, many people believe that they will be able to outsmart the scammer. They think that they’ll be able to figure out a way to get the money without actually sending any themselves. Unfortunately, by the time they realize that they’ve been scammed, it’s often too late.
Phishing scams
How to Spot Phishing Scams
Phishing scams are becoming more and more sophisticated, but there are still some telltale signs that can help you spot them. Here are some tips on how to protect yourself from becoming a victim of phishing.
What is phishing?
Phishing is a type of online identity theft that occurs when someone tries to trick you into disclosing personal information, such as your username, password, or credit card number. Phishers typically do this by sending an email or instant message that appears to be from a legitimate source, such as a bank or online retailer. They may even create a fake website that looks identical to the real thing. When you enter your personal information on the phony site or reply to the message, they now have access to your accounts and can use your information to commit fraud.
How can you protect yourself from phishing attacks?
The best defense against phishing is awareness. Be suspicious of any email or instant message that asks for personal information, even if it appears to be from a trusted source. If you’re not sure whether an email is legitimate, don’t click on any links in the message. Instead, go directly to the website in question and log in from there. And never enter personal information on a website that isn’t encrypted; look for https:// in the address bar before entering any sensitive data.
Phishing scams are becoming increasingly sophisticated, but there are still some ways to spot them. By being aware of the signs of phishing and taking steps to protect your personal information, you can avoid becoming a victim of identity theft.
Lottery scams
How to Spot a Lottery Scam
You’ve probably seen the emails or Facebook messages. They typically go something like this: “Congratulations! You have been selected to receive a free grant of $10,000! All you have to do is send us your bank account information and we will wire the money directly to you.” If you’re like most people, you probably just delete these messages without giving them a second thought. However, there are far too many people who actually get stung by this scam.
The lottery scam typically includes the following.
1. The message is unsolicited.
If you didn’t enter a lottery or contest, then you shouldn’t be getting an email or message telling you that you’ve won. Scammers will often try to create a sense of urgency by telling you that you need to act quickly to claim your prize. Don’t fall for it!
2. The message is from an unknown sender.
If the email or message is from someone you don’t know, it’s probably a scam. Even if the sender seems legitimate at first glance, be sure to do some additional research before responding. A simple Google search can often reveal whether someone is who they say they are.
3. The message contains grammatical errors.
These types of emails and even phishing emails often contain grammatical errors and strange phrasing. If you see errors in the message, it’s a good bet that it’s a scam.
4. You’re asked to pay upfront fees.
No legitimate organization will ever ask you to pay upfront fees to claim a prize. If you’re asked to pay taxes, shipping fees, or any other type of fee, it’s almost certainly a scam.
5. The offer seems too good to be true.
If it seems too good to be true, it probably is! Be especially wary of any offer that requires very little effort on your part but promises a large financial reward. These offers are almost always scams designed to steal your money.
Lottery scams are becoming increasingly common as scammers look for new ways to steal people’s hard-earned money. By following the tips in this blog post, you can easily spot a lottery scam and avoid becoming a victim. Remember, if an offer seems too good to be true, it probably is! When in doubt, err on the side of caution and don’t respond.
Credit card fraud
How to Spot Credit Card Fraud
There are a few ways to spot credit card fraud. First, you should regularly check your credit card statements for any unauthorized charges. If you see a charge from a merchant you don’t recognize, that’s a red flag that your card may have been compromised. You should also be on the lookout for any charges that are larger than usual. Sometimes, criminals will make small test charges on a stolen credit card before making a large purchase. So, if you see a charge that’s out of character, it’s worth investigating.
Another way to spot credit card fraud is to pay attention to your credit score. If you suddenly see a drop in your score, that could be an indication that someone has taken out new lines of credit in your name. You can also sign up for alerts from your credit card company so that you’re notified whenever there’s activity on your account. That way, you can catch any fraudulent charges as soon as they happen.
How to Avoid Credit Card Fraud
Credit card fraud is becoming increasingly common as more and more people shop online and use their credit cards for everyday purchases. But there are steps you can take to avoid becoming a victim of this type of crime.
The best way to avoid credit card fraud is by being vigilant about keeping your information safe. That means never sharing your PIN or full account number with anyone, not even family or friends. It also means being careful about where you use your credit card. Try to avoid using it at businesses that don’t appear to be reputable or secure. When shopping online, always make sure the website is encrypted before entering your payment information. You can tell if a website is encrypted if the URL starts with “https” rather than just “http.”
You should also keep an eye on your physical credit card. Never let it out of your sight when you’re making a purchase and be sure to keep track of it at all times. It’s also a good idea to monitor your account activity frequently so that you can catch any suspicious charges right away. By regularly checking your statements, monitoring your credit score, and being careful about where you use your card, you can help protect yourself from credit card fraudsters.
Tax refund scams
How to Avoid Tax Refund Scams
Hoping to get a big refund check from the IRS this year? However, before you start daydreaming about what you’ll do with that extra cash, beware of tax refund scams. Every year, thousands of people fall victim to scams where crooks pose as tax preparers or IRS officials to steal your hard-earned money. But there are a few simple steps you can take to protect yourself and avoid becoming a victim:
1. Don’t believe promises of unrealistic refunds. If it sounds too good to be true, it probably is. A reputable tax preparer will never guarantee a specific refund amount before reviewing your situation.
2. Be on the lookout for red flags. This includes things like a preparer who refuses to sign your return or gives you a blank return to sign, demands payment in cash only, or asks you to sign a blank Form W-2.
3. Don’t give out your personal information unless you’re sure who you’re dealing with. Be especially careful of email phishing scams where criminals pose as legitimate businesses or organizations to get your personal information. Never click on links or download attachments from unknown senders. And remember, the IRS will never initiate contact with you via email, text message, or social media.
4. Know what services you’re paying for. Make sure you understand exactly what services a tax preparer is offering and what their fee includes before signing any agreements.
5. Review your return carefully before signing it and ask questions about anything you don’t understand. You are ultimately responsible for the accuracy of your return, even if it’s prepared by someone else, so make sure everything looks correct before signing it and submitting it to the IRS.
When in doubt, consult with a tax professional or the IRS directly to ensure that you’re getting the most accurate information possible.
Check washing schemes
What is check washing?
Check washing is a type of fraud where criminals steal your checks, wash out the payee information, and write in their own name and amount. They can then cash the check at your bank or deposit it into their own account. And since the check appears to be legitimate, there’s not much you can do to get your money back.
How can I protect myself from check washing schemes?
There are several things you can do to protect yourself from check washing schemes:
1. Keep track of your checks: Be sure to keep track of all the checks you write. This way, if one of your checks is stolen and washed, you’ll know right away and can act accordingly.
2. Use a pen with indelible ink: When you write a check, be sure to use a pen with indelible ink so that it can’t be easily altered. If someone tries to change the payee information on your check, it will be obvious that the check has been tampered with.
3. Safeguard your checks: Don’t leave your checks lying around where they can easily be stolen. Keep them in a safe place where only you have access to them.
4. Review your statements: Be sure to review your bank statements carefully each month. If you see any suspicious activity, report it to your bank immediately.
Final thoughts
By following the tips above, you can help protect yourself from becoming a victim of these financial schemes. Remember, if you think something might be too good to be true, it probably is. Trust your gut and always err on the side of caution when it comes to giving out personal information or writing checks.
Progressive Debt Relief has extensive experience resolving unsecured debt. If you need assistance with your unsecured debt, call Progressive Debt Relief, 877.590.1847 or schedule a free consultation online.
*This content must be used for informational purposes only. Progressive Debt Relief does not provide legal, financial or tax advice and the above should not be construed as such.
The holidays are just around the corner, which means it’s time to start thinking about holiday shopping. For many people, the holiday season is a stressful time of year, due to the pressure of finding the perfect gifts for loved ones. However, it doesn’t have to be this way. With a little planning and forethought, holiday shopping can be stress free.
Here are a few tips to get you started:
Start by making a list of everyone you need to buy a gift for
Holiday shopping can be a daunting task, especially if you have a long list of people to buy for. However, there are a few strategies that can help you get through it without breaking the bank. First, start by making a list of everyone you need to buy a gift for. This will help you keep track of who you’ve already bought for and who you still need to shop for. Second, try to think of creative and personal gifts that will mean more to the recipient than something expensive. Third, take advantage of sales, coupons, and gift card specials to get the best deals on holiday gifts.
Break the list down into categories, such as family, friends, co-workers, etc.
If you have a long list of people to shop for, one way to make the task more manageable is to break the list down into categories. For example, you might have a separate list for family, friends, co-workers, etc. This will help you to focus your shopping and ensure that you don’t forget anyone. Another tip is to start early and spread out your shopping over a few weeks. This will help to relieve some of the holiday stress and allow you more time to enjoy the season.
Brainstorm gift ideas for each person on your list
To get started, sit down with a pen and paper, and make a list of everyone you need to buy for. Then, brainstorm gift ideas for each person. For example, if you’re buying for a family member who loves to cook, consider a new cookbook or kitchen gadget. If you’re buying for a friend who is always traveling, consider a new piece of luggage or a travel-themed gift. And if you’re buying for someone who is difficult to shop for, think about what they are interested in or what they might need. Once you have a few ideas, you can start narrowing down your options and making your holiday shopping list.
Set a budget for each category and stick to it
One way to make holiday shopping less stressful is to set a budget for each category and stick to it. This will help you stay on track and avoid overspending. To start, make a list of all the people you need to buy gifts for and what you would like to spend on each person.
Give gifts that won’t break the bank. There’s no need to spend a lot of money on gifts. Sometimes the best gifts are those that come from the heart, not the wallet. Make sure you have the money available and be sure to keep track of your spending, so you don’t go over budget and avoid going into debt.
Shop online and in-store sales to get the best deals
At times, holiday shopping can be a nightmare. You fight your way through crowds of people, only to find that the item you were looking for is sold out. And then there are the holiday sales: a seemingly never-ending barrage of emails and ads, each promising bigger and better deals. It can be tough to know where to find the best deals. However, there are a few general principles that can help you save money.
First, start early. By beginning your holiday shopping early, you’ll have more time to compare prices and find the best deals.
Second, take advantage of online and in-store sales. Many retailers offer holiday sales both online and, in their stores, so be sure to check both options before making a purchase. If the item your seeking is out of stock, see if it is available either online or in-store.
Finally, don’t be afraid to haggle. If you see an item that’s priced higher than you know it is advertised for elsewhere, try asking the salesperson if they’ll honor the lower price.
Wrap all your gifts once they’re bought so you don’t have to worry about it later
With people rushing to buy gifts, it can be difficult to find the time to wrap all of the presents. However, taking the time to wrap your gifts as soon as you buy them can save you a lot of stress later on. Not only will your gifts be ready to go when the holiday arrives, but you’ll also be less likely to forget about them and have to scramble at the last minute.
How to save money on holiday shopping
The holiday season is a time for giving, but it can also be a time for going broke. If you’re not careful, holiday shopping can quickly become a budget-buster. But there are ways to keep your spending in check and still make your loved ones feel special.
Shop early. Avoid the holiday rush by starting your shopping early. You’ll not only avoid the crowds, but you’ll also be more likely to find better deals. Compare prices and don’t just buy the first thing you see. Take the time to compare prices at different stores before making a purchase. Take advantage of sales. Many stores offer holiday sales, so be sure to take advantage of them. But beware of impulse buying just because something is on sale. Only buy items that you were planning to purchase anyway.
Final thoughts
Holiday shopping does not have to be a budget buster that leads to credit card debt, which can take months or years to climb out of. By following these tips, you can be ready and make the holiday shopping season a breeze.
Progressive Debt Relief specializes in resolving unsecured debt. If you need assistance with your unsecured debt, call Progressive Debt Relief, 877.590.1847 or schedule a free consultation online.
