Over the course of history, people have dealt with financial scams. Also referred to as White Collar Crime or corporate fraud these crimes have had some devastating effects on the victims as well as the financial market.
So it is always considered best to play it safe so that you don’t end up falling into one of those financial traps. Here is a list of 7 of the most common financial scams that you should be aware of:
This is one of the most common financial rip offs many victims have been known to fall victim to. In this the scammer calls a particular person and claims to be any IRS agent. They try to trigger fear in their victim by claiming that they owe back taxes and if not paid immediately they may become a subject of the local law enforcement and may even end up being arrested.
Social Security Scams
In this scammers usually call their victim claiming that they belong to the Social Security administration. This is usually implemented by leaving a voicemail containing a number for you to call. In this the caller will tell you that your Social Security account has to be verified and that they need your personal information in order to do so. Or in some cases they may also claim that your account has been suspended because a warrant has been issued for your arrest and in order to resolve this issue you have to purchase their prepaid cards or gift cards.
In this type of scam, the caller tells people that they need to replace their old Medicare cards with new ones. And to do this they try to take out the personal information of the victim by asking for things like their SSN. Because of the authority the caller seems to hold, people fall victim to this scam quite often.
In this type of scam elder people are specifically targeted. In this the scammer will call an elderly person claiming that something horrible has happened to their grandchildren and to have it fixed they will need money. The scammer uses emotionally manipulative tactics to gain the victim’s trust in order to swindle them out of thousands of dollars.
In the era of online dating this type of scam has become quite common. First the scammer will build a fake relationship with their victims. Once the relationship starts budding, the scammer will start lamenting to the victim about their lack of money. They may use the excuse of coming to meet you as a reason they need money and even ask you to pay for their travel. They rely on your emotional investment in them to achieve their goal. Once you have transferred them money, however, they will vanish into thin air.
This commerce platform is used by many scammers to target their victims into buying things that they will never receive once the payment has been received. To avoid such a scam it is recommend to avoid paying upfront. It is also highly recommended to always meet a potential seller or buyer in a public area with lots of witnesses.
Lottery or Grand Prize Scams
In this type of scam, instead of scaring their victims, the scammers try to trigger their greed. The scammers will call you in the name of a lottery, claiming that you have won one. And now, to claim your prize, all you have to do is to pay the taxes and fees associated with the winning. Here you will be asked to wire your taxes before you can claim the prize.
Now that you are aware of these scams, it is important that you be on the lookout for them, especially when on social media. Never make your email, phone number, or address public and avoid answering calls from numbers you don’t know or opening suspicious looking emails.