Financial scams are common in today’s world and aim at separating you from your money. Many of these scams make use of new technology to steal your personal information, which can be used to defraud you. Other scams convince you to invest your money in business opportunities that do not exist, which means that you will never see any sort of return. The best way to protect yourself from falling victim to any of these scams is to gain awareness of how they work and to hang up your phone quickly if you are approached in this manner.
Free Goods or Services
A common fraud that you might come across is someone calling and inviting you to a free luncheon. If you choose to attend this luncheon, you will have to sit through a seminar, which is aimed at getting you to invest in a company. You will likely be promised a significant return on your investment, which, of course, is unlikely to occur. In some cases, the company in which you are investing does not even exist and the fraudsters will simply move on to the next town where they will swindle additional people out of their hard-earned money.
Phony Training Courses
With today’s job market being such a struggle, scam artists have started taking advantage of people who are looking for legitimate work. This fraud involves making people pay for a training course and promising employment once it has been completed. The problem, however, is that there is no guaranteed job at the end of the course and the person is out the money that was paid for the training in the first place.
When you receive an unsolicited email from someone who is claiming to be from your bank or another official institution, you could become the victim of a phishing scheme. In these scenarios, the scam artist will set up a website that looks identical to that of your financial institution. Then, when you click the link that is found in your email, you are taken to this phony site and asked for your financial information. Once this occurs, the scammer could access your bank accounts and clean them out before you even know what happened.
You might already be aware that the majority of penny stocks are fraudulent, but that does not make them any less tempting if you happen to receive a pitch from someone who is after your money. The basic idea is that scammers will advertise these stocks until a number of investors get on board. The stocks, despite not having much real value, are artificially inflated in price because of this advertising. Then, once the stocks reach a certain level, the scammers will sell their shares, which causes the stock’s value to plummet to its true level.
Oil and Gas
Anyone who has been in the investment game for more than a few years is sure to come across some oil and gas scams. In many cases, you could be convinced to invest in an oil and gas company that does even have access to wells or the equipment to drill if it does find some wells. Luckily, there are ways to research oil and gas companies before making an investment, which makes it less likely that you will become a victim.