An interesting survey result revealed at that people are not readily alarmed when they hear the words ‘financial fraud’ due to the presumption that such will not happen to them. Financial fraud or scam have become big words, which make people think that only corporations and extremely wealthy people are the target. This makes average earners even more vulnerable to being ripped off.
The more than 2 billion US dollars lost each year from scamming retirees alone prove that financial fraud do not choose its victims. Even the most average person can fall for the tricks of financial scammers. It becomes more dangerous these days with frauds taking too many forms. Below are some of the most common, yet tricky financial frauds ever recorded:
1.) Grandchild’s Distress Call – with the retirees being the favorite victims of financial frauds recently, this kind of scam has already ripped off millions of senior citizen’s money. A typical approach is calling random numbers of grandparents pretending to be their grandchild or a friend of their grandchild asking for emergency money. Another strategy is emailing using the identity of the grandchild, and asking to wire money to a new bank account. This may seem to be a silly tactic, but once executed, scammers can sound very convincing, which often results to successfully getting funds from their victims. An estimate of $200 dollars can be ripped off from every victim through this fraud.
2.) Insurance scam – with insurance companies successfully rising from the financial crisis, it is not surprising if new insurance offers start to be knocking on our doors, again. Unfortunately, even insurance offers are possible financial threats, too. Scammers will oddly ask for your bank account details, specifically your savings account as early as the application process. This often end up with the accounts representative asking for your savings to be transferred to your account with the insurance company, claiming that it will be a better way to keep the money. While this is a completely sane offer, fraud insurance offers simply take away your hard earned savings, without returns or anything.
3.) Rewards Offer – Another common way to trick people into sending money is by luring them to a certain reward, as tempting as appliances or a vacation trip. In order to claim this reward, they will ask for a certain processing fee. This fee may come in a minimal amount but sending it through check or wire transfer is the main catch, as your most important financial details are already exposed. This makes you more prone to bigger financial scams.
With financial fraud taking the form of completely legit entities like insurance, medical, and computer companies, it is getting harder to determine which of the offers we are getting are legit or not. As mere consumers, it pays to heed to foolproof ways to avoid being a victim of financial fraud. The number one rule will always be Protecting Personal Information, whether online or offline. These information we give out in several forms we encounter everyday are the number one weapons of scammers. So, make sure to only give your personal details to legit organizations. If you are not certain about the entity you are dealing with, refrain from giving too much information, especially email addresses, mailing address, and contact numbers.