Trick-or-treating for your money
by. Holly Petraeus
When it comes to tricking you out of your money, for scammers it’s Halloween all year long.
In 2011, an estimated 25.6 million adults (10.8 percent of the U.S. adult population) were victims of fraud. Consumer scams can take many different forms, from direct marketing to affinity scams and involve everything from identity theft to pension poaching. However, there are a few general tell-tale signs that you can look for if you’re trying to decide if a financial product or service you’re being offered is a scammer’s trick or a financial treat.
There are a lot of bogus offers out there that guarantee huge investment returns, windfalls of money, or a fast track to important benefits for only a “small” fee or investment on your part. It could be the offer of a loan at a great rate of interest – as long as you send in a “security deposit” first. Once you do, “poof!” your money disappears along with the scammer who made you the offer.
Or, maybe it’s an offer to help you get thousands of dollars in benefits from the Department of Veterans Affairs– for a fee. If you’re a veteran interested in getting benefits like Aid and Attendance, you should be wary of any paid advisor who offers to help you qualify for the benefit or who claims to be able to get you the benefit more quickly than anyone else.
Scammers would like you to believe they have superpowers, often claiming inflated credentials and experience in order to access your money.
Distressed homeowners may fall prey to mortgage relief companies that offer to help them with their mortgage or foreclosure problems for an up-front fee. These self-styled heroes will tout their credentials and promise to help solve your problems, but often leave you worse off than you were before. And it’s illegal for them to charge you an advance fee for help, so report them by submitting a complaint online or by calling (855) 411-2372.continue reading »