Don’t Be Scammed: How to Protect Your Money
If you’ve never been the victim of a scam, consider yourself lucky. Just don’t let
your guard down. Thousands of consumers are preyed upon by con artists every year—and
collectively they lose millions of dollars. Here’s an overview of some main types
of scams and how to avoid them:
Credit card scams
By now, you’ve probably heard of identity theft. It’s when someone assumes your
identity and opens bank, credit card or other accounts to commit fraud or theft.
And credit cards are the easiest and most popular ways for identity thieves to get
to you. Protect yourself. Destroy your dining receipts before leaving the table.
Anytime your card is out of your sight, stay aware. Any unscrupulous cashier or
server could copy your card number down and use it later. Check your statements
to make sure all your charges are legitimate.
ATM scams
Don’t be a victim of an ATM “skimmer.” Savvy criminals place these devices illegally
on ATMs, usually on top of the existing equipment. With one card swipe, the skimmer
reads all your account information from the magnetic stripe, and may even be able
to record your PIN code! Armed with this info, they can now drain your account.
So pay attention. If the ATM just doesn’t look right—don’t take chances. Find another
one.
Investing scams
Over the Internet and through the mail, you’ve probably seen these “get rich quick”
offers. Many are pyramid scams, where each newcomer must find additional customers
or buyers to get compensated. These scenarios can look great on paper, but use the
rule of thumb: if it seems too good to be true, it is. Don’t fall for them, especially
if it is a company and/or product you’ve never heard of.
Employment scams
With so many people looking for work, it’s easy to see why crooks use employment
scams. Beware of employment ads with “fee” in the wording. It’s often buried in
the fine print. The fee is charged by a staffing service, and can be large. Remember
this: You should never have to pay to get a job.
Think you’ve been a victim of a scam? You can fight back. In addition to its toll-free
consumer hotline (1-877-ID-THEFT), the FTC also provides an ID Theft Web site (www.consumer.gov/idtheft)
that includes tips on how to guard against identity theft and warns about some of
the latest ID theft scams. It’s a great resource for those who think they’ve been
victimized. Callers who reach the hotline are advised to file a police report with
their local law enforcement agency.
Remember, it’s your money—so protect it from scam artists!