Be on The Lookout; How to Avoid Consumer Scams ... Part 1
Scams can come in many forms, but they have something in common. They are all designed to get hold of your money. They can do this by getting you to reveal your personal details, stealing your information, or even getting you to willingly hand over the cash. The key is knowing how to recognize a scam, protect yourself and what to do if you think you've been targeted or have fallen victim.
Be on the lookout for these common scams:
1. Computer repair scams – this scam starts with a “computer company” that claims your computer has a virus – by calling you directly or through a computer-prompt. This “warning” will direct you to call a certain number. The scammer offers to fix the problems, then asks for access to your computer. Such access allows the scammer to install malicious software designed to scan your computer for personal information or to lock your computer, making it unusable until you pay a “ransom” to unlock it. Never allow remote access to your computer, and don’t download unfamiliar programs or files.
2. Credit repair scams - These scams involve a promise that bad credit can be erased, interest rates can be lowered, and debts can be consolidated. Many of these “companies” charge hundreds or thousands of dollars but do little or nothing to improve your credit. If you want to improve your credit, contact a nonprofit credit-counseling agency or your creditor directly. You may be able to arrange a payment plan yourself – at little to no cost.
3. Fake check scams – This scam involves a check or money order asking that you deposit it into your bank account and then wire-transfer a portion of that money to the sender. The “difference” is yours to keep, the scammer says, as a “bonus” or “thank you” for helping out. Regardless of the pitch, the result is the same: The check or money order is counterfeit. No money will be deposited into your account, and the full amount of the check or money order will be deducted from your account, often along with a returned-check fee. Never wire-transfer money to a stranger.
4. Family and caregiver scams - Sadly, family members, caregivers, and friends can be the offenders in financial abuse involving the elderly. They might use your credit cards without permission, pressure you to sign over your power of attorney, or forge your signature. Beware of such behavior and watch for signs of a family or caregiver scam, including bills going unpaid, a new “best friend,” isolation from other family members or friends, unusual banking activities, or missing belongings.
5. Foreclosure rescue scams - In exchange for an upfront fee, scan artists promise to save your home from foreclosure by obtaining loan modifications or lower interest rates. They instruct you not to contact your lender directly, but they do nothing except take your money and put your home at greater risk. To be connected to a certified housing counselor or for legal assistance, contact Save the Dream Ohio at 888-404-4674 or www.savethedream.ohio.gov.
6. Grandparent scams - With these scams, a con artist poses as a grandchild. The “grandchild” calls with a false story, explaining that he or she is in trouble in another city or country and needs you to send money immediately. Of course, any money you send goes to the scammer, not to a real grandchild. When in doubt, ask the caller a question (or questions) only your family members would know the answer to and call your son or daughter to confirm the location of your grandchild.
7. Home improvement fraud - This occurs when contractors or companies do little or none of the work they were paid to do. Door-to-door contractors may offer to repair your roof, pave your driveway, or trim your trees for a good price or with leftover supplies from another job in the neighborhood. After you pay, however, the contractor disappears without doing any work or after doing a poor job.
Signs of a Scam
Be on the lookout for these common scams:
1. Computer repair scams – this scam starts with a “computer company” that claims your computer has a virus – by calling you directly or through a computer-prompt. This “warning” will direct you to call a certain number. The scammer offers to fix the problems, then asks for access to your computer. Such access allows the scammer to install malicious software designed to scan your computer for personal information or to lock your computer, making it unusable until you pay a “ransom” to unlock it. Never allow remote access to your computer, and don’t download unfamiliar programs or files.
2. Credit repair scams - These scams involve a promise that bad credit can be erased, interest rates can be lowered, and debts can be consolidated. Many of these “companies” charge hundreds or thousands of dollars but do little or nothing to improve your credit. If you want to improve your credit, contact a nonprofit credit-counseling agency or your creditor directly. You may be able to arrange a payment plan yourself – at little to no cost.
3. Fake check scams – This scam involves a check or money order asking that you deposit it into your bank account and then wire-transfer a portion of that money to the sender. The “difference” is yours to keep, the scammer says, as a “bonus” or “thank you” for helping out. Regardless of the pitch, the result is the same: The check or money order is counterfeit. No money will be deposited into your account, and the full amount of the check or money order will be deducted from your account, often along with a returned-check fee. Never wire-transfer money to a stranger.
4. Family and caregiver scams - Sadly, family members, caregivers, and friends can be the offenders in financial abuse involving the elderly. They might use your credit cards without permission, pressure you to sign over your power of attorney, or forge your signature. Beware of such behavior and watch for signs of a family or caregiver scam, including bills going unpaid, a new “best friend,” isolation from other family members or friends, unusual banking activities, or missing belongings.
5. Foreclosure rescue scams - In exchange for an upfront fee, scan artists promise to save your home from foreclosure by obtaining loan modifications or lower interest rates. They instruct you not to contact your lender directly, but they do nothing except take your money and put your home at greater risk. To be connected to a certified housing counselor or for legal assistance, contact Save the Dream Ohio at 888-404-4674 or www.savethedream.ohio.gov.
6. Grandparent scams - With these scams, a con artist poses as a grandchild. The “grandchild” calls with a false story, explaining that he or she is in trouble in another city or country and needs you to send money immediately. Of course, any money you send goes to the scammer, not to a real grandchild. When in doubt, ask the caller a question (or questions) only your family members would know the answer to and call your son or daughter to confirm the location of your grandchild.
7. Home improvement fraud - This occurs when contractors or companies do little or none of the work they were paid to do. Door-to-door contractors may offer to repair your roof, pave your driveway, or trim your trees for a good price or with leftover supplies from another job in the neighborhood. After you pay, however, the contractor disappears without doing any work or after doing a poor job.
Signs of a Scam
- You’re asked to wire money or send a prepaid money or gift card to a stranger.
- You’ve won a contest you’ve never heard of or entered.
- You’re pressured to “act now!”
- You have to pay a fee to receive your “prize.”
- Your personal information is requested.
- A large down payment is requested.
- The company refuses to provide any information in writing.
- You’re asked to keep conversations a secret.
- You’re guaranteed to make money.