Scams and Fraud
If it Sounds too Good to be True it Probably is: How to Protect Yourself Against Scams and Fraud
Thousands of people get scammed in some way every year, but by following a few simple tricks you can reduce your likelihood of falling victim to fraudsters and protect yourself against harmful cheats who are out to take every penny they can get their hands on.
- Always be conscious and aware that if something sounds too good to be true then it more than likely is. It’s a rarity to get something for nothing these days and being scepitical of every deal or offer can help you avoid losing money or being scammed.
- Always use reputable companies. Knowing some background information on a company’s reputation and their full address and contact details before you use them is essential. Professional looking websites and marketing tools can be deceiving and it is best to always check whether they are a registered company by looking them up on the Companies House Website. Also doing a quick search online before you use a company should help to flag up any important information you may need to know before deciding to use them.
- Hints and tips for protecting yourself online:
- Never give out your banks details or send them via email even if it is to someone you know.
- Use only secure wireless networks.
- Get anti-virus and anti-spyware software and make sure your firewall is enabled.
- Use safe ways to pay such as Paypal or a credit card, as you are entitled to claim the money back on insurance if anything goes wrong.
- Make sure your passwords are strong and change them regularly.
Finally, if you suspect you have been a victim of fraud then report it straight away to Consumer Direct on 08454 04 05 06 to get help and advice on what to do next.
Examples of common Scams to watch out for:
- Cheque overpayment – people overpay you using a counterfit cheque and then ask you to pay back the difference, so you end up shelling out.
- Clairvoyants and psychics – you can often end up paying money up front and getting nothing back in return
- Online dating – be cautious of the people you meet online as often a lot of them are just looking for free ticket to the UK.
- Pay-in-advance credit – the processing fee’s are non-refundable and there is the possibility you will be refused a loan after you have paid the fee upfront.
- Property rentals – always read the contract fully. The main scams are involved with claiming back deposits.
- Timeshare resale – be wary of administration costs.
- Working-from-home – companies requring up front fees to work from home are usually out to scam you.
- Phishing – this is when you may recieve a letter or email from a company you use regularly asking you to update your details. Be wary never to hand over confidential information as these sites can look like the real thing but are often fake.
- Chain letters
- Fake Shares in Companies
- Bogus Investment opportunities
- Lotteries
- Prize draws and sweepstakes – if you havent entered a competition then letters saying you’ve won a guaranteed cash prize are usually a scam. Asking you for a processing fee upfront is a clear indication that such schemes are not to be trsuted.
- Career opportunities
- Money Transfer
- Premium-rate prize draws – the telophone lines for these draws often charge extortionate rates and you end up spending more on the phone call than you actually “win”.
- Pyramid selling and chain gift schemes
- Miracle cures – dont be taken in by supposed “miracle cures” as claims are often exaggerated and the cure in question could potentially be harmful.
- Slimming – dont be fooled by pills or fad diets as a lot of them dont work and the company is just out to take your money.
- Racing tipsters
- Advance fee – known as the ’419 scam’ or the ‘Nigerian letter’. A fraudster will ask you for money up-front and offer you a huge end payment to help get money out of a foreign country.
- Ticketing – alwayd make sure you use a reputable ticketing website that is known and trusted.