Beware These Common Scams

With the holidays approaching, hackers and scammers will be out in full force trying to get to your (or yours parents') hard earned money. The best way to avoid being the victim of a scam is to know how to identify misleading information and common tricks. Here are some popular scams to be aware of:

Secret Shopper job scam -- You see an online want-ad for secret shoppers. You apply using personal information. The "employer" hires you by phone and asks for your banking information for direct deposit. The "company" steals your money, and you never hear from your new job again.

How  to avoid it: Secret shopper jobs are almost always a scam. Retail companies hire their own shoppers, and do not use internet  ads to do so. Also, be cautious of any company whose headquarters you have never seen.

Facebook friend scam -- You get a Facebook "friend request" from someone you do not know. You guess that it's from an old buddy, so you accept the request. Soon, other friends start getting strange videos and messages from your profile. The mystery "friend" is a hacker who is now able to log into your account.

How to avoid it: Assume all strangers could have a despicable motive, and avoid them online. If you are not sure if you know a person, check with other friends or your parents to confirm his or her identity.

Smishing -- You receive a text message from you bank that says they must "verify your account information," and requests your account number, PIN, or address. Or the scam involves you getting texts from a store like Wal-mart. The text says you have won a gift card, but your information is needed before they send you the prize. If you text back the information they ask for, you may later find that your money or identity have been stolen.

How to avoid it: Banks and stores NEVER contact clients by text. Just delete the texts right away.

Hopefully, this information helps you keep your money safe this holiday season!

READER, what do you think?

Have you heard of other scams? How do they work?

References

 Elliot, C. (2012, February 2). 5 Scams you shouldn't fall for in 2012. Mintlife Blog. Retrieved June 14, 2012, from http://www.mint.com/blog/consumer-iq/5-scams-you-shouldnt-fall-for-in-2012-022012/.

---. (2012, June 14). 5 New scams you need to know about. Mintlife Blog. Retrieved June 14, 2012, from http://www.mint.com/blog/consumer-iq/5-new-scams-you-need-to-know-about-now-062012/.