3 Common Financial Scams You Should Watch Out For

By ronhayo | Posted in Uncategorized on Friday, July 27th, 2018 at 9:15 pm

Year after year, countless scams sweep the nation, leaving millions of unsuspecting Americans counting their losses. It is unfortunate that the progress made in digital technology makes it easier for fraudsters to get important data from consumers and use it to perpetuate their crimes. It is essential to always be on the lookout for these scams because most of the times, they are presented as very ordinary and useful services.

Payday Loans

When you are having financial difficulties, you might be tempted to look for payday loans. While there are some payday loans service providers who are legitimate, there are also a lot of other scams pretending to offer this service. The critical thing to note is that you end up paying between fifteen to thirty dollars for every one hundred dollars that you borrow. Fake payday loan providers will ask for an upfront fee, invite you to fill out an online form or call claiming to be a debt collector. Any information given to these impersonator could lead to substantial financial losses.

False Extended Warranties on Cars

This scam is usually executed so craftily that very few people know what has happened till they lose their money. A person calls pretending to be affiliated with your car dealer. They inform you that your warranty is about to expire and offer a warranty extension which will come at a fee. They go ahead to list the benefits of getting the extension and naturally, you feel the need to extend the warranty and give out your credit card information or agree to make a payment. The fraudsters will coerce you into making a purchase by telling you that the warranty extension is available on discount for a short period.

Phishing Scams

Phishing scams exploit social engineering skills whose aim is to induce panic and compromise one’s ability to reason logically. A typical scam of this kind is one where you get an email from someone posing as your bank, university or insurer. They claim that they noticed fraudulent activity on your account and they need verification. Clicking the link compromises your information. To avoid these scams, always read suspicious emails in basic HTML to sniff out the forgery.

It is important to always watch who you divulge your important financial information to. People are losing millions of dollars each year to these fraudsters, and despite government efforts to crack down on them, they keep getting new ways to defraud unsuspecting consumers.

If you need service you can rely on, get in touch with us. You can also see if we can solve your problem with our blog!

Resources:

Scam Alert | Lawyers.com

Auto Repair Scams | Honest1

Auto Warranty Scam | Federal Communication Commission

Avoid Phishing Scams | Indiana University

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