8 Financial Scams to Avoid

Financial scams are becoming increasingly sophisticated, preying on fear and confusion to steal personal information and money. It’s important not to live in fear but to be aware of the tactics scammers use so you can protect yourself effectively. Here are the eight most common financial scams you need to know about and how to avoid them.

1. Fraudulent Bank Contact Scams
Scammers often impersonate banks, calling to alert you of “fraudulent charges” on your account. Their goal is to frighten you into sharing sensitive information. In one shared experience, a scammer became aggressive when asked for verification, revealing the call’s fraudulent nature.
How to Stay Safe:

• Never trust unsolicited texts or emails from your bank.
• Always contact your bank directly using the phone number on the back of your debit or credit card.
• Verify any suspicious transactions by logging into your secure online banking platform.

2. Police Threat Scams
Scammers pose as law enforcement officials, threatening arrest for unpaid fines or missed jury duty unless you pay immediately. They often demand payment through untraceable methods like bank transfers or gift cards.
How to Stay Safe:

• Police do not demand payment over the phone.
• Hang up immediately if you receive such a call.
• Contact your local police station directly to confirm the legitimacy of any claims.

3. USPS and Amazon Text Scams
Scammers send fake texts claiming there are issues with your package delivery, prompting you to click a link or provide payment details. The speaker shared a personal experience where a scammer sent a fake USPS delivery text. Because a package was genuinely expected, the text seemed believable—until it led to a fraudulent website.
How to Stay Safe:

• Never click on links in unsolicited delivery texts.
• Verify delivery issues directly with USPS, Amazon, or the appropriate carrier.
• Use official tracking numbers through verified websites.

4. Fake Property Tax Bills
Scammers send official-looking property tax bills, tricking homeowners into paying fake balances. These scams are particularly convincing because they mimic real government notices.
How to Stay Safe:

• Consult with your broker or lending agent if you receive a suspicious tax bill.
• Verify property tax payments directly with your county’s tax office.

5. Protecting Personal Information Online
Your personal information—like your phone number, address, and even your past employers—can be easily accessible online, making you a target for scams. The speaker recommended a service called Delete Me, which removes personal information from online databases, preventing data brokers from selling your information to scammers.
How to Stay Safe:

• Regularly check your online information for exposure.
• Use services like Delete Me to clean up your digital footprint.
• Be cautious when sharing personal information on public websites or social media.

6. Fake Jury Duty Registration Scams
Scammers sometimes pose as government officials, requesting personal information for “jury duty registration.” They often ask for Social Security numbers, addresses, and even payment information.
How to Stay Safe:

• Legitimate jury duty notifications are sent by mail, not by phone or email.
• Government websites will always end in .gov.
• Never share sensitive information without verification.

7. Spam Calls and Texts
Scammers use familiar area codes and vague personal messages to trick you into responding. These calls can lead to more scam attempts or data theft.
How to Stay Safe:

• Let unknown calls go to voicemail.
• Ignore vague texts from unknown numbers.
• Do not respond or click on any links in unsolicited messages.

8. QR Code Scams in Packages
Scammers sometimes send packages with QR codes that, when scanned, give them access to your phone and sensitive information.
How to Stay Safe:

• Never scan QR codes from unsolicited packages.
• Verify the sender before taking any action.

General Advice on Avoiding Scams
The best protection against scams is skepticism and verification. Always look for red flags like urgent requests for payment, threats of arrest, or requests for personal information through text or email.
How to Protect Yourself:

• Ignore unsolicited messages or urgent requests for money.
• Verify claims by contacting official numbers found on verified websites.
• Educate yourself on common scam tactics to recognize red flags.

Final Takeaway:
Scammers thrive on fear and urgency. By staying informed, verifying suspicious communications, and protecting your personal information, you can avoid becoming a victim. For more tips on scam prevention, be sure to catch the next episode where we cover airline and retailer scams that are growing in popularity.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind