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Category: Scam Alerts

A scam is a deceptive scheme or trick used to cheat someone out of something. For the longest time, many individuals and businesses have scammed people for monetary gains. The history of scamming is vast, and scammers are still around because they continue to cook up new schemes that people end up falling for.

The good thing is, there are plenty of credible information sources that consumers can learn from to counter scams. The key is to have a solid foundation of knowledge of common scams and the signs to identify them. Awareness is crucial so you can spot red flags before scammers can get a hold of your money.

Types of scams

There are various types of schemes an individual, group, or business entity use to scam consumers. However, knowing the common ones will help you picture how scammers operate, effectively stripping them of the power they can have over you.

Here are the types of scams most consumers may encounter nowadays:

Banking scams

Since most consumers rely on banks, many scammers will think of a scheme to use that relationship for monetary gain. 

Popular banking scams you may encounter:

  • Overpayment scams – Scammers will deceive you into overpaying a debt or a transaction you supposedly made. Typical tactics of this scam include sending a counterfeit check and telling you to deposit it to their bank account and wire some of the money back to the scammer. Due to the fake check, the consumer pays their bank its amount and loses their wired money.
  • Unsolicited check fraud – Scammers will send you a check for no legitimate reason at all to get you to cash it and authorize an item purchase or a loan you didn’t ask for.

Telephone scams

Telephone scams are designed to steal your information over a phone. Scams may come through phone calls from real people, robocalls, or text messages. Callers often make false promises, such as opportunities to buy products, invest your money, or receive free product trials. 

They may also offer you money through free grants and lotteries. In addition, some scammers may call with threats of jail or lawsuits if you don’t pay them.

Government grant scams

In this type of scam, an individual will approach you in person or online, guaranteeing you a government grant for costs like college or business capital.

In reality, government grants are rarely awarded to individuals and usually go to local governments, universities, and other organizations. The money is awarded to help pay for research and projects that will benefit the public.

Investment scams

Scammers will deceive you into investing in an investment opportunity with the intent to run away with your money. It’s like gambling where they lure you in with easy ways to make money until you’ve trusted them enough to invest a larger amount.

A common example of an investment scam is the pyramid scheme, where scammers use it to recruit people to invest in having a constant flow of participants for the profit to continue. These scams are typically marketed as multi-level marketing and are always bound to fail.

Prize scams

Prize scams are fabricated to steal your details by deceiving you into joining a fake contest for a prize. Scammers will contact you and claim you’ve won a prize from a contest you never even participated in.

Others will require you to provide personal information to enter a “contest.” These scams may reach you by postal mail, email, phone call, robocall, or text message.

Ticket scams

Aside from rewards, scammers also use tickets to bait consumers into giving them their money. They sell fake tickets or legitimate ones at a much higher price, and they never send them when you pay for them.

Charity scams

Scammers take advantage of the public’s generosity with charity scams. They’ll set up a fake organization that aims to help people struck by tragedy or natural disasters and encourage people to donate through an account they set up.

Common red flags that scams have

These are the typical signs that someone is attempting to scam you:

  • Unsolicited or unexpected contact from a “representative” of a company you currently deal with (bank, utility provider) via email, phone call, or text message
  • They push you to make quick decisions.
  • They ask for your details (Full name, PIN, or password)
  • The prize or reward is too good to be true.
  • Asking you to pay through untraceable methods such as gift cards

Arm yourself with information to be aware of fraudulent schemes and how scammers execute them to avoid being a victim. Below are some of the recent scams that we have covered news on:

Beware Your Gift of Giving

Consumer Affairs recently reported that this is the time of year many people make out checks to their favorite charities, which depend on that ge... Detail

Your Old Fashioned Online Romance

Recently, seven scammers from Nigeria and South Africa have pleaded guilty to participating in a large-scale international online fraud conspiracy tha... Detail

Tis The Season…

As we have been reporting on a pretty much constant basis over the last few weeks, the holidays are a time that gather up a medley of scams, and when ... Detail

Holiday Pyramid Scheme Unwrapped

Who'd like to lose hundreds of dollars this holiday season!?! Oh? Nobody? Weird... If you're not one of the outliers that just loves losing money, th... Detail

Holiday Scams Hit All Time High

The holidays are a busy time of year for all of us. Stores are open later, people are running around more, and consumerism is at its absolute peak. ... Detail

Our Tips To Spot Fake News

Is Jackie Chan DEAD?! Is a question my friends and coworkers ask me on a monthly basis due to stories that pop up on their internet news fee... Detail

FedEx Delivers Holiday Scam

Like the packages you've been ordering nonstop, the holidays are at our doorstep! So, naturally, if you were to get an e-mail from FedEx asking for so... Detail