How to Quickly Spot A Scam

Scams are everywhere these days, with the explosion of the internet, and the economic recession. But we have the tools to protect ourselves from being scammed

Difficulty: Moderately Challenging

Instructions

1. Nobody gives things away for free. Alright some do, but chances are you won't be getting it anytime soon. Anything offering free stuff without any sort of upfront payment is probably a scam or something that will drain your bank account without being illegal.

2. Don't trust foreign emails saying you have won the Irish Lottery or that you need to deposit money into a Nigerian bank account. Instead repost them to the FBI! (which is much more satisfying).

3. If you are unsure about something, look it up or ask a friend. The Better Business Bureau is very helpful, as is anyone you know who works for an intelligence agency, or as an accountant, investment advisor, or fraud specialist. GOOGLE something if you think it is shady. There are tons of forums for this kind of thing.

4. Don't be fooled by anything claiming to be from the US government. They will NEVER contact you via email. Your bank will also never ask for information via email.

5. As a general rule, do not give out personal info via email. Credit card numbers, addresses, passwords, etc are all things that should be kept private. If you need to, ask for a phone number and don't be sweet-talked into anything. Ask for proof in document form and NOT testimonials.

6. There are tons of scams out there, but some of the most common include nigerian letter scams, chain letters, bulk email jobs, "special opportunities," diet pills, sweepstakes, envelope stuffing or work from home jobs, vacations or prizes, credit frauds, easy loans, etc. You can go on the FBI website and look up even more.

7. Use your credit card instead of cash so you can obtain a refund if you do get taken in.

8. Don't pay somebody to get in on a "special opportunity." Don't pay anyone to obtain special forms, licenses, etc for a "job."

9. The Federal Trade Commission and sites like scamfreezone.com and scam busters are great places to find up-to date information. If it seems to good to be true it probably is!

[neelas]

on 10/7/2009 Good article! well written with useful tips.

[savemoneycenter]

on 6/10/2009 I always said that the creativity of some of the internet criminals, if put to good use, they actually may make some real "honest money." Great article, also be careful of people offering to give you a "certified bank check" it usually is a scam to get your item in exchange for a counterfiet check.