Over the span of time, a lot of people have dealt with scams in the field of finance.  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 safe to play safe so that you don’t end up falling in one o those financial scam traps. Here is a list of 7 of the most common financial scams that you should be aware of!

Tax scams

This is one of the most common financial rip offs many of the victims have known to have fallen in this. In this the scammer calls a particular person and claims to be any IRS agent. They try to trigger the fear in their victim by claiming that the target owes 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 a scammers usually call their victim claiming that they belong to the social security administration which is either initiated via a message leaving a number for you to call. In this the caller will tell you that your social security account has to be verified and they need your personal information for that.  Or in some cases they may also claim that your account has been suspended as a warrant has been issued to arrest you. And in order to resolve this issue you have to purchase their prepaid cards or gift cards.

Medicare scams

In this type of scam, the caller calls people telling them that they need to replace their old medicare cards with the new ones. And to do this they try to take out the personal information of the victim also know ask for their SSN number. Thus by acting as a legitimate agent the caller may trap you in a plot in order to have financial gain.

Grandparent scams

In this type of scam mostly elder people are targeted. In this the scammer will call an adult person claiming that something wrong has happened to their grandchildren and to have it fixed they will be needing some money. Over the phone with an emotional heart touching dramatic story that it usually binds the victim to trust the caller. But in the majority of cases it is a trap and one should try to stay out of it.

Romance scams

In this era of online dating this type of scam has become really common. In this the fraudsters will first build up a fake relationship with their victims and once the relationship staring budding deeply the scammer will start lamenting to the victim over lack of money. They may use the excuse of coming by flight to meet you and ask for money and other reason. The cons ask to send money via a wire transfer or prepaid card. And once the victim sends money the fraudster simply vanishes in thin air.

Craigslist scams

This –commerce platform is used by many scammers to target their victims into buying things that they will never receive once the payment is done. To avoid such scam it is recommend to avoid paying upfront. And also while meeting the buyer or seller meets them in public places or go to meet them with a trusted person.

Lottery or grand prize scams

In this type of scam instead of scaring their victims they try to trigger their greed. The scammers will call you in the name of lottery claiming that you have won one. And now to avail your prize all you have to do is to pay for the taxes and fees associated with the winning right before you claim for your prize. Here you will be asked to wire your taxes before you claim for the prize.

Thus it is truly said that prevention is better than cure. Be aware of these scams as they have lately been the favourite among the cons. And these scammers usually approach their victim through either social media or though online sources. So make sure that you are aware of these scams and never fall for them.