Avoiding Financial Scams

​With the benefits and ease of fast communication in the world today, there are always few drawbacks. One of these drawbacks is the amount of financial scams that are circulating the global economy. We must all be aware of the tactics that are used in order to avoid them.

• Do Not Share Financial Information

There are many scams that involve an imposter posing as someone they are not, such as an employee at your bank. Often they will ask you to confirm your credit card number, but then wait for you to read the whole thing to them first. Never give your financial information to someone over the phone who has initiated the call, no matter how legitimate the situation or person might sound. Please only call the number on the back of the credit/debit card for assistance with your issue.

• Always Question Odd Communication

If an old childhood friend or family member you rarely talk to sends you a second friend request on Facebook or other social media, be cautious. Often this "new friend" then sends you a private message filled with some awkward conversation, possible spelling errors, and a desperate plea for money. It is always wise to question whether or not they are legitimate. Contact another family member or mutual friend, or call the contact directly on the phone to see if their account might have been hacked or duplicated.

• Never Concern Yourself With Being Polite

If your cousin is pressuring you to invest in a get rich quick, money making opportunity, don’t invest just to keep the peace in your family. Ask questions about the investment, and do your own research first. Money and family do not mix! Bad financial decisions will do more harm than good to your relationship because you didn’t want to offend a family member.

• Ignore E-Mails That Offer Financial Opportunities

Most of us have already received these emails - you know the ones that tell you they have a relative who died and left them with a huge inheritance. They need someone to both send and deposit money, and in return for your help they will split the proceeds. It cannot be stressed enough that you should never answers these emails. Delete them, report them as spam, and move on.

• Do Not Ever Send Money to Strangers

Many individuals who are trying to scam you out of your money will give you a heart-wrenching story, and ask for your financial assistance to help get them out of trouble. Be forewarned, there is also a scam circulating who appeal to your desire to make quick money, and tell you they will let you in on some of their wealth if you send them some money first to get the business up and running. 

If someone ever asks you to send money, simply refuse. Be especially cautious if their suggestion involves a cash transfer, such as MoneyGram or Western Union. Most new scams involve cryptocurrency such as BitCoin.

• Always Heed Your Intuition

If something sounds too good to be true, it probably is. Does your stomach feel uneasy about the person on the other end of the phone? Don’t ignore your intuition.

Financial scams are everywhere. At any point in time, all of us are susceptible to these scams. Fortunately, if you use your head and think twice about what is going on, you can avoid almost all of them. Keep these tips in mind next time, and keep you and your family safe from any financial loss.

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