We live in peaceful times. The chances of you getting robbed or mugged nowadays are quite low. Compared to fifty or a hundred years ago, they’re minuscule. However, that doesn’t mean that crime has stopped.
People will always find a way to do harm to each other, which is why there is a massive increase in fraud. Consumer frauds are on the rise, and people are using untrue commercial tactics, as well as misleading, unfair, and deceptive strategies to trick college students and seniors. This includes massive pyramid schemes, identity theft, fake marketing, and plenty of other scenarios. Click here to read more.
There are institutions in place that work to safeguard customers from this type of behavior, but the number of scams keeps increasing faster than the federal organization can put a halt to them. Every day there’s a new method of stealing money from you.
That could be the coolest new crypto project or a Ponzi scheme where you have to invite five other friends to get your money back. In any case, it’s important to know what to look out for, which could save you in the long run.
Stealing identities
This is one of the most common exploits since it’s quite easy to do. All it takes is one mistake, and your credit card information, Social Security number, bank account number, name, and address can be stolen. Identity theft mostly happens in places where there’s public Wi-Fi.
When you log onto a free Wi-Fi, there could be a hacker that’s just waiting to attack your device. You don’t notice anything for a couple of days, and then suddenly, your entire wallet gets drained. They can cash out your credit card in your name, use your health insurance, or take out a loan.
You need to be extra careful if you want to spot them. The first suspicious activity is several small payments that you didn’t make. Make it a habit to open your bank app every day to check if everything is okay. Maybe you stop receiving status statements from financial institutions. Follow this page for more info https://www.thestreet.com/personal-finance/consumer-fraud-where-is-it-worst-how-to-avoid
That’s a clue that thieves have altered your main address so they can open those letters and create new accounts under your name. Furthermore, debtors could call you about bills, purchases, and loans that you don’t remember approving. That should be a signal to go to the Federal Trade Commission and report that your identity has been stolen. There are instructions online on what to do from home and report all of the harm that has been caused.
Fake charities
People would do anything for money. No one in their right mind would think of creating a fake charity and taking all of the profits for themselves. However, there are people who do such a thing. They use the same strategies as real charities, but their underlying premise is to steal all of your money. That’s why, before you make any kind of donation, you need to do some research and understand how and where the money will be used.
There are a couple of things that could be red flags, so you can notice a bogus organization immediately. The first red flag is intense pressure to make a donation. Charitable organizations are not pushy, they just ask for money, and if you decline them, they walk away.
However, if a charity is being extremely pushy and comes to your door to collect cash, then it’s most likely a scam. Another sign of fraud is sending you a thank you note or gift card for a purchase or donation that you didn’t make to make you feel guilty. Furthermore, they often use names that are similar to a real organization to trick your brain into thinking that they seem familiar.
If you think that the name sounds odd, it’s better to check it on Google before you hand over some cash. Ignore them if they’re too pushy or try to make the situation high pressure, especially if they want to ensure an immediate payment. Never use cash as a donation, and always use their bank account as a method. Try to look for these signs after a catastrophe, such as an earthquake, tornado, tsunami, or hurricane. These are the times when these scammers try to do the most damage.
Fake games of chance and lotteries
These types of consumer fraud are usually directed at senior citizens because they don’t know how to use technology very well to check on information. The scam starts with a postcard or a phone call that tries to convince you that you’ve won money.
However, to receive the prize, you have to transfer a small fee to cover their administrative charges or taxes. After you do it, the scammers tell you that the winning notice will be sent in a bulk mail or go to a secluded place for a scheduled meeting in person.
If you’re an avid lottery player, you might have forgotten everything that you’ve played, so it’s going to be easy to trick you. Additionally, these frauds have become even more sophisticated because entire companies have been added into the mix. Instead of sending the money to an individual, they’ll tell you to send it to a company address and abuse it.
Taking precautions is mandatory in this scenario. Most of all, if you receive a check from a company that appears legitimate, make certain that it’s not a forgery. Never give out your bank account information or credit card data when it comes to transferring money.
Call the number on the genuine company and contact them to see whether it’s real before you do anything. Everything that seems out of the ordinary should be reported to the Federal Trade Commission.
A few final words
Scammers will use every trick in the book to make money off you. Every opportunity that looks too good to be true is probably a masked fraud. Approach them carefully and never give away more information than you should. Take the necessary precautions to stay safe at all times.