Recognizing Money Scams

by Lee Wyatt
(last updated August 23, 2013)

Have you noticed how you can't seem to be able to turn on the television or radio today and not hear about some new scam that people have fallen victim to? If you stop and think about it for too long, it is something that can frankly make you just a tad depressed. The key to avoiding money scams lies in recognizing money scams. While it would take a really long time to learn and memorize the thousands of scams that there are, as well as all of their variants, there are a few guidelines that you can use to help you recognize them.

  • Is it too good to be true? There is an old saying that goes "If it sounds too good to be true, then it probably is." While this may sound like an old cliche, it became that way for a reason. For example, any deal where you are promised a $4000.00 return for only a $100 investment is more than likely a scam. Such dreams only really come true in fairy tales.
  • Did you ask for the information? Most scams begin with unsolicited information being given, help being offered, or even requested. A common type of scam that is frequently seen in today's world is where the potential victim receives an email from someone that claims to be in dire financial need, but yet about to inherit a large some of money. As the letter progresses, it attempts to tug at your heart strings and requests that you send a little bit of money (which will be repaid exponentially) so that they can receive their money. None of this is real, and the individual who sent you the email is simply trying to scam you for a bit of money, or if they are lucky your bank account.
  • You are required to pay upfront. Before anyone gets all upset and says that even legitimate investment companies require money upfront, this situation is a little different. Typically scammers will request that you give them money in one of the following ways: cash, cashier's check, or money order. All of these methods are particularly difficult to trace later on. If you have any qualms, questions, or concerns about a particular investment do some checking. Contact the local Better Business Bureau, the main office of the investment company, or even your local police department and check the company out.
  • Your silence is "requested." If your general silence is either requested, or strongly encouraged (as to not spoil the deal) then you may be faced with a scam. Most legitimate business opportunities will not require keeping the fact of the deal quiet from friends or family. Again, if you are requested to keep the information quiet, then you really need to do a bit more checking into the company.
  • Did you hear the magic words, "It's a sure thing?" It's really sad to say, but the only truly sure things in life are death and taxes; and even some taxes can be rid of if you have a good accountant. If you ever hear the words "it's a sure thing," run for the hills. This is a huge red flag for a scam.

Author Bio

Lee Wyatt

Contributor of numerous Tips.Net articles, Lee Wyatt is quickly becoming a regular "Jack of all trades." He is currently an independent contractor specializing in writing and editing. Contact him today for all of your writing and editing needs! Click here to contact. ...


Weather Stripping Doors

Weather stripping can help you maintain temperatures in your home and reduce dampness. Learning to weather strip your own ...

Discover More

Elements of Landscaping

Landscaping can be a little overwhelming to even the most experienced of gardener, let alone anyone that is just starting ...

Discover More

Protecting Your Identity

Protecting your identity is becoming more important with each passing day. Often times it seems like you can't turn on ...

Discover More
More Money Tips

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, ...

Discover More

Resources for Fighting Scams

It can be a humiliating, and even scary, experience to find yourself the victim of a scam. Unfortunately, since everyone ...

Discover More

Recognizing Financial Scams

Financial scams can be found everywhere and if you're not careful you could find yourself in a tight financial bind ...

Discover More

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}] (all 7 characters, in the sequence shown) in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. 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 nine more than 8?

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