Friday, January 13, 2012

New Year Scams and How to Avoid Them

Here is another list of New Year scams and how you can avoid being victimized:

1. Ponzi Scheme. Criminals will get investors' money by promising huge returns. Keep your money safe in bonds and mutual funds that can secure your money for you and return it to you irregardless of how small or how big you have earned or profited from it.

2. Identity Theft. This one goes on year-round. The criminal will steal your identity and use it to purchase and make loans under your name. Be very careful. Do not give out personal numbers. Verify the phone number that called you and get the information about the caller and report promptly to the police. Share your experiences about phone scams with others via reviews directory.

3.Over payments. Criminals will issue checks to the victims (usually landlords, small business owners, freelancers, etc) and ask for the extra amount back in cash. Later, the poor victims will learn that the checks have no funds and will bounce. Do not negotiate with people offering you over payments.

4. Processing fees to get loans. You pay for fees to be able to get the loan. After you pay, there is no loan at all. Do not give money for nothing. Try not to get loans at all.

5.You're a winner schemes. Like identity theft, this is a year-round scam as well. Usually, the elderly are ones being victimized here. The caller will tell the granny that he or she has won in a lottery and would need to wire money to pay for taxes. Hang up your phone when you receive such calls. If you have answered already, do not pay anything.

Keep your guards up always. Open your mind about all the scams and schemes going on around you and equip yourself with knowledge on how to avoid them. This new year, be more careful in dealing with people offering opportunities to you.

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