Money Fraud & Scams
Scams and Frauds are used interchangebly in many instances but they are bit different in their own way. With the Internet usage being common in many households, many crooks and culprits use this window to get in wearing a false mask to trap the people in scams and fraud. Identity Theft is one of the biggest problem with these scams and frauds.
Through the news, you may have heard of unscrupulous individuals who are busy developing new scams for the unsuspecting public. Awareness and education are your best protection against fraud, scams, and schemes,
Lets understand and learn few things about Scam and Frauds.
What is a Scam?
What is a Fraud?
There are different varieties of Fraud and Scams which unfolds especially during the bad economic times. Check out the old list of scams and frauds to be keep abrust and more recent ones.
What is Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit.
The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.
What you can I to avoid getting into Scams, Frauds and Ponzi schemes? 1. It is too good to be true. If your inner instinct smells something suspicious about scheme, stay away from it. Most of the time, inner voice feels the right thing.
2. It is always a good idea to take protective measures to take care of your personal information.
3. Don’t carry your Social Security card, passport, or birth certificate in your wallet.
4. Don’t give your credit card or Social Security numbers or other information over the phone unless you initiated the phone call.
5. Open and read all financial statements and bills as soon as you get them and look at transaction activity.
6. Get a copy of your credit report and check for fraudulent activity at least once a year.
Some content from dcu.org