Recognizing Financial Scams

by Charlotte Wood
(last updated February 21, 2009)

It's so easy in today's world to run into fraud, whether that be real estate, credit, or really anything financial. You always need to be on the lookout for those who wish to steal your money through deception and scams. While financial scams will always be around, there are ways you can avoid them and secure your financial stability.

One of the biggest things to remember when encountering a potential money scam is to make sure you know what makes an establishment legitimate. What kinds of credentials do they need to have and what services should they offer? Check out a few different services in whatever field you're investigating and look for similarities and trends. If you do research in regards to whatever financial area you're looking into, then you'll know what is necessary and what is not.

Something else to always pay attention to is what kinds of questions people ask regarding your finances. If a service or something of the like is asking for information that they really don't need for what they say they'll be doing then chances are they're not legitimate. Use discretion when giving out information about your finances and other sensitive issues; some things people just don't need to know and if they're asking for that information, then you shouldn't be doing business with them.

Recognizing and avoiding financial scams is largely based on using your brain and common sense. Those emails asking for money or containing some far fetched story about some Nigerian prince are rubbish and should be treated as such. Never act on any email or forward or junk mail that promise something or tries to compel you to feel sorry for whatever cause. Try to do business with already known and reputable establishments; you can venture business with a less known entity but make sure you know what you're getting yourself into and that it's legitimate and clean.

Recognizing and avoiding financial scams isn't hard and simply requires a little bit of research and a lot of common sense. If you feel iffy about anything, even slightly, then don't go forward; your financial well being isn't worth the risk of doubting. Be prudent and cautious when it comes to your finances and those you let handle them and you'll be set to go when it comes to keeping your money safe.

Author Bio

Charlotte Wood

MORE FROM CHARLOTTE

Financing a Home

When you take out a mortgage it's always a bit exciting because that means you're closer to finally owning your home. However ...

Discover More

What Types of Bankruptcy Are There?

Bankruptcy is a more complicated issue than many may think and one that should be researched before you dive in. If you know ...

Discover More

Understanding Closing Costs

Unfortunately there is more to buying a house than just paying the list price. You need to factor in closing costs and before ...

Discover More
More Money Tips

Protect Yourself from Con Artists

There are people out there whose self-selected job it is to separate you from your hard-earned money. Protect yourself by ...

Discover More

Planning For Financial Emergencies

Financial emergencies can come in many forms, loss of a job, a chronic health condition, a natural disaster or death of a ...

Discover More

If Someone Calls at Your Door to Sell Something

You know the feeling: It is a busy day, and suddenly a knock comes at the door. Someone is there to sell you something, and ...

Discover More
Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 8Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is 0 + 7?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)