How to Avoid Common Financial Scams and Frauds

You are a smart person and you probably pay close attention to the details. But sometimes even the most savvy of people can be taken advantage of when they least expect it.

Financial frauds and scams exist in every community. These crimes take various forms and are designed to trick victims into giving up money or personal information that can be used for identity theft or other illegal purposes. 

More often than not, these criminals operate by phone and email because they know that online transactions may leave traces that would make them easier to track down by law enforcement officers who investigate these types of crimes. 

That doesn't mean you should avoid using the Internet for financial transactions altogether; rather, it means being careful about how much information you give out when doing so—and knowing what steps to take if something goes wrong before making any financial commitments online at all (or over the phone).

Ask for your money back.

One of the best ways to avoid scams and frauds is simply to ask for your money back. If you're not satisfied with a product or service, make sure you get what you paid for in full. If the business refuses to refund your money, complain directly to them--and use social media if necessary! You should also contact government agencies that regulate businesses in your area; they may be able to help facilitate a resolution between yourself and the company or organization involved.

If none of these methods work, it might be time to take legal action against whoever has wronged you (i.e., scammed or defrauded).

Don't give anyone access to your bank account, credit card or debit card.

It's a common scam for someone to call and say they are from your bank and need to verify some information on your account. They may ask for your mother's maiden name, birth date or other personal details that can be used in identity theft. The only time you should provide this information is when you are actually at the bank, so if someone calls asking for it over the phone--don't do it!

Don't agree to pay a fee up front.

If you are asked to pay a fee up front when applying for a loan, you should think twice before proceeding. This is because legitimate lenders don't ask for money up front. Instead, they will wait until after the loan has been approved and you have started making payments before asking for payment of any kind. If someone asks for money in exchange for helping you get approved or even just giving advice on how to get approved, it's likely that they're trying scam you out of your hard-earned cash!

Don't give out personal information

  • Don't give out personal information over the phone, even if it's your bank or another trusted institution.

  • If an organization calls you and asks for your account number, credit card number or other sensitive information, don't give it to them. Hang up immediately and contact the company directly using another method (such as email).

  • Always verify a caller by asking questions only they would know--for example: "What is my mother's maiden name?" If they can answer that question correctly, then proceed with caution; otherwise hang up on them immediately!

Learn about how to spot a scam before you are victimized.

The best way to avoid being scammed is by learning how to spot a scam before you are victimized. Here are some tips:

  • Check the name of the company you are dealing with. Scammers often use similar-sounding names or initials that can be confused with well-known businesses, such as "AAA" for Automobile Association or "CPA" for Certified Public Accountant. It's also important to check if they have an address on their website and ask for references from other customers so that you can verify if their services are legitimate or not.

  • Ask them about their physical address and make sure that it is actually located in your state or province (if applicable). This will help prevent any issues down the road where someone may claim they weren't aware that there was no physical location in Canada when signing up online through social media sites like Facebook Messenger instead of visiting their actual site directly linked from Google Search Results pages where there should always be one listed somewhere near the top section containing information about who owns those domains plus links back into each specific page within those domains owned by each individual person/company associated with these types of projects being offered by third parties such as ourselves here at The Financial Advisors Group Inc., since we're currently offering FREE consultations today only - so don't miss out!

Know what to do if you become the victim of a fraud or scam.

If you become the victim of a fraud or scam, report it to your bank. Your bank will want to know so that they can help protect other customers from being victimized as well. Report the incident to the police as well; this helps with criminal prosecution and gives them more information about how these scams work so that others won't fall for them in the future.

If you think your personal information may have been compromised by hackers or identity thieves, contact one of these three places:

  • Federal Trade Commission (FTC): Phone: 1-877-ID-THEFT (438-4338). Website:

  • Better Business Bureau (BBB): Phone: 1-866-720-5722 

There are plenty of ways out there that people try to take advantage of others in order to line their own pockets. Scams can be perpetrated over the phone, email, or in person by someone you know or don't know at all. Scams are often disguised as something else--a money-making opportunity or investment opportunity--but they're really just designed to part you from your hard earned cash. Here are some common scams to watch out for:

  • Identity theft: Identity thieves use personal information like social security numbers and credit card numbers to create new accounts in another person's name and run up charges on those accounts before anyone notices what has happened. This makes it very difficult for victims of identity theft because they have no idea how long their identities were compromised and which accounts have been compromised until after it's too late for them (and potentially others) financially

We hope that this article has given you some insight into how to avoid common financial scams and frauds. We know that it can be hard to spot them before they happen, but by being aware of these types of scams and knowing how to protect yourself from them, we believe that it will help keep people from falling victim to these types of crimes. If anything seems suspicious or wrong with something someone is trying to sell or offer as part of their business plan, then don't hesitate in contacting authorities immediately so they can investigate further!