Beware of Scams

This issue, in my opinion, couldn’t be timelier. Here are some that I think you should be aware of and some that are just getting started. This was something that I shared with some of my close friends last Monday at our usual fishing trips.

• Foreclosure scams – the so-called ‘counselor’ tells the homeowner that he can negotiate a deal with their lender to save their home. In exchange for an exorbitant fee, the scam artist claims he will handle al the details. But once the fee is paid… That is not the worst nightmare ..imagine if you are duped into signing documents for what you might think as a new loan to bring the mortgage current. You may just signed forged documents ceding the title of the house to the scammer.. usually you would not know you have been scammed until you get an eviction notice. Foreclosure scams are rampant in today’s depressed housing market.

• Debt elimination/ reduction scams. There are all over the place now and if you are not careful, you are not only saddled with excessively high fees, but fails to pay creditors as promised, or do other shady things that put you in a worse financial position. If you need help with debt problems, take time to seek out government-sponsored credit counseling organization.

• High-return investment and savings pitches. Preying on investors’ desire to earn back losses or get higher returns on savings. The pitches can run the gamut from ‘risk-free’ investment in the stock market to certificates of deposit yielding 6%,7% or even more. If you are offered, say a savings interest rate that is more than 3% or 4% above market rates, it’s probably a scam… your best defense – use common sense – if an investment sounds too good to be true, it probably is.

• Job, unemployment and income-related scams. Running the gamut now to include everything from offering ‘job insurance’ which allegedly covers you if you are laid off .. to guaranteeing they will find you a job … to promises of riches from part time home biz opportunities. Many are not.

• Mystery shopping scams. Classified ads or unsolicited emails, where the scammer claims they are sending you a check but instructing you to make purchases and then, after deducting a ‘commission’ to wire the remaining funds back. Fake checks are now showing up in lottery scams, internet auction scams and rental scams. They look real, but they are just a way to steal your money.

My survival trick is that never respond to any calls, emails, advertisement I received and now is the time to be more vigilantly protecting your money than ever before!