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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:

Puppy Scammer at Large

Recently, Consumer Affairs published an article discussing "Puppy Scammers." In it, they say: Consumers planning to welcome a puppy into their lives t... Detail

Happy Hack-A-Daze

In a world where technology is at the forefront, we must be always be vigilant and watch what we do. We've seen firsthand that devices that connect to... Detail

Dodge, Jeep Amid Scuffle

Today, a California Dodge RAM 1500 EcoDiesel owner filed a class action against Fiat Chrysler and Bosch for allegedly concealing the use of an emissio... Detail

Update on Google Virus

As we reported yesterday, everybody's new favorite malware, Gooligan, has been hard at work, infecting nearly 15,000 devices daily; targetin... Detail

Beech-Nut Lawsuit

Recently, a class action lawsuit came about surrounding the Beech-Nut Corporation, and moreover its baby cereal products. To note, Beech-Nut manu... Detail

MISSING: Aloe Vera

We all know the feeling: crisped, crinkling skin tightening up as we get out of the shower and regret trusting the cloud cover that day on the be... Detail

Debt Relief Scam Uncovered

As is so common nowadays, debt begins to pile up and overwhelm so many of us as we try and keep up with the Jones' or just simply make ends meet. When... Detail

Apple Dumbs Down iPhone 7

Below is an article posted by The Consumerist that I wanted to share with you all. Again, it's Apple being Apple! You would think an iPhone 7 is an i... Detail

Bourbon Fraud, Neat

A class action lawsuit has been brought on behalf of purchasers of Old Charter bourbon. Old Carter represents they provide an 8-year aged bourbon, and... Detail