The Top Ten Scams to Avoid
Its 2009 and scams are rampant. Recognizing them is not always easy as they come in many different forms and from many different directions. Here are 10 of the more common scams you will likely encounter in your everyday life.
1. Envelope Stuffing- They promised you hundreds of dollars each week for mailing out letters. In reality you are mailing out advertising for the very same job you are doing, stuffing envelopes. You only get paid if the recipient of your letter goes in for the same scam you just went in for.
2. Business Opportunity Scams- They asked you to pay an upfront fee in order to gain information about an opportunity to make lots of money. Like the envelope stuffing scheme you usually end up needing to get others involved in the same scam in order to make any money. This is the classic pyramid scheme.
3. List of Companies Scam- They offered to sell you a list of companies that are hiring people to work from home. You pay upfront for a list of companies that usually have no need of people to work from home.
4. Email Processing Scam- This is a modern twist on the envelope stuffing scam. They promise you money for each email you process and send out. In reality you are sending out spam trying to get more people involved in the scam.
5. Phony Debt Consolidation- They promised to consolidate your debt into one low easy payment. There are legitimate companies who can do this for you; however, you must be careful with who you choose. If they charge you an upfront fee or have sketchy contact information you should beware. These companies can severely affect your finances and credit rating.
6. Weight Loss Scams- They offered to sell you a diet or drug which will cause you to lose weight rapidly with little or no exercise. With obesity running rampant in the U.S., this is a tempting quick fix for many. The problem is that there is no quick fix for being overweight, and the only thing you stand to lose to these scams is your money.
7. Fake Lottery Scams- They sent you a letter or email telling you that you have won a large amount of cash in a sweepstakes or lottery that you have never heard of. In order to claim your prize you must pay a “release fee.” After paying your fee, you never hear from them again.
8. Computer Lay-Away Scams- They offered you a computer for low monthly payments even if you have bad credit. In reality you end up paying a high down payment and have to make several monthly or weekly payments before you will receive your computer if you receive it at all. You will also end up paying much more for a low-end computer than what you would pay in the store.
9. Phishing- You received emails from people claiming to be from your bank or some other institution asking for personal and/or financial information often under the guise of security upgrades. No legitimate business should ask for this sensitive information in an email.
10. Stock Tip Scams- You “accidentally” received a tip on your answering machine or in an email about a stock that is about to increase dramatically in value. These tips aren’t so accidental and are meant to get you to invest money into a mediocre or worthless stock.
