Avoiding Scams - How to Avoid Scams

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Avoiding Scams

By: David Korn

So many people fall victim to scams. This can take a bite out of your savings for years to come. Many have trouble determining what a scam is. There are a few ways that you can tell. Once you notice a few of the signs, you can steer clear of the potential scam. Even if it isn’t a scam, it is better to be safe than sorry.

Everyone has heard of telemarketing. We experience it on almost a daily level. Many companies call our homes to offer goods and services. Many of these are potentially scams. The absolute best thing to do with telemarketing is to avoid as many as you can. I recommend not buying anything over the telephone unless you know the company is real and reputable. Don’t give out your credit card information, social security number, and so on if they ask. You can ask for them to mail you a catalog instead. Usually, the ones that ask you for personal information are looking to scam people.

Many credit repair services are not legitimate. They try to take advantage of those in a financial bind. Some even make up claims that your credit is in trouble to get you to sign up with them. If you want to remove credit problems, do it only with the creditor that you owe money to. Utilizing a third party service may not be wise since it could be a scam.

Prize claims can be an enormous scam. Prize call centers usually contact you via telephone or mail. The illegitimate ones will state that you have won something and need some money from you to verify payment. Some are slick enough to use real sounding agency or business names. Anyone asking you for money for something that you won is a red flag.

E-mail scams are as prevalent as telemarketing scams. There are the usual e-mails asking you to buy things. There are also the e-mails that make false claims about your online accounts. They make up a claim saying you are in default, your account is in trouble, or something to make you worry. The best thing to do is move your mouse over their hyperlink to see the website name. If the name is different than the actual website, it is most likely a lure site. Other e-mails claim you have a stake in a lot of money, usually from another country. Be careful of e-mail claims.

Phishing websites are sites that look like the original one. They make you believe it is a legitimate site and get you to give out your information. Once your log into their site, they capture your account information. They can use your information to log into your real account. As a result, they can wreck havoc in your account. Much like the e-mail claim, moving your mouse over the hyperlinks can help you determine if the site is real or not. Make sure you type out legitimate websites in your browser to prevent clicking on fraudulent links. In addition, many browsers and anti-virus programs come with phishing detection. You can also report suspected phishing sites to the perspective companies.

Auction fraud occurs when you buy something online from an auction site and the item never arrives. To avoid this scam, it is best to get as much verification from the seller as you can. You can ask for phone numbers, addresses, pictures, and payment options to verify. Using credit cards might be a good idea since you can cancel the order within a given time frame. Also, check the seller’s feedback on the site. Utilize payment protection plans on auction sites, if they have them available. Many of these actions will help ensure that you will receive your item.

A ton of websites offer you the get rich quick schemes. They claim that their systems are automated and you don’t have to do a thing to earn a lot of money. My advice would be to really research them since we have no idea what is legitimate or not. You are better off coming up with your own ideas and marketing them if you plan to sell online. Knowing how to decipher the scams can save you a lot of time and money.