Money Monday: 6 Financial Scams to Watch Out For
Steer clear of mystery shopping, fake checks and more.
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Don't Be a Victim - Every year the Better Business Bureau investigates thousands of scams and informs consumers about investment fraud, Ponzi schemes and risky investments. Here are six financial scams to watch out for, as culled from the BBB’s most recent roundup. — Bridget McCrea (Photo: Adrianna Williams/Getty Images)
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Top Over-Payment/ Fake Check Scam: Car Ads - The online ad says something like “Get Paid Just for Driving Around” — a prominent company is offering $400+ per week if you’ll drive around with their logo all over your car. They send a check to you, which you are supposed to deposit in your account and then wire part of the payment to the graphic designer who will customize the ad for your vehicle. Whoops! A week later, the check bounces, the graphic designer is nowhere to be found, and you are out the money you wired. (Photo: Khuong Hoang/Getty Images)
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Top Emergency Scam: Grandparents Scam - A grandchild/niece/nephew/friend is traveling abroad and calls/texts/emails to say he or she has been mugged/arrested/hurt and needs money right away (“…and please don’t tell mom and dad!”). Plus, the FBI says that, thanks to social media, it’s getting easier and easier for scammers to tell a more plausible story because they can use real facts from the supposed victim’s life (“Remember that great camera I got for Christmas?” “I’m in France to visit my old college roommate.”) (Photo: San Jose Mercury News/MCT /Landov)
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Top Employment Scam: Mystery Shopping - If you love to shop, working as a secret shopper may sound like an ideal way to supplement your income. But scammers have figured that out, too, and many job offers are nothing more than a variation on the Overpayment/Fake Check Scam (detailed in #1 on this list). Sometimes they even tell you that evaluating the wire service company is part of the job, which is why you need to send back part of the money. (Photo: Yellow Dog Productions/Getty Images)
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Top Advance Fee/ Prepayment Scam: Nonexistent Loans - Most of the scams advertise online and promise things like no credit check or easy repayment terms. Then the hook: you have to make the first payment upfront, you have to buy an “insurance policy,” or there is some other kind of fee that you have to pay first to “secure” the loan. (Photo: Jeremy Woodhouse/Getty Images)
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Top Sweepstakes/Lottery Scam: Jamaican Phone Lottery - In this one, the calls come from Jamaica (area code 876) but the person claims to represent the BBB (or FBI, or other trusted group). Great news: you’ve won a terrific prize (typical haul: $2 million and a Mercedes-Benz) but you have to pay a fee in order to collect your winnings. There are lots of variations on this; sometimes it’s a government grant. (Photo: Tim Boyle/Getty Images)
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Top Sales/Rental Scams: Real Stars Fake Goods - Some scammers sell cheap knock-offs in front of stadiums. Others set up websites that just steal your money and never had any goods to begin with. Counterfeit goods are not only a rip-off for you because the merchandise is usually shoddy, but they are also a rip-off for the teams, athletes, designers and artists who create, license and sell the real thing. Buy directly from team stores and websites, or from legitimate retailers. (Photo: Paula Bronstein/Getty Images)