Since you’ve worked hard to achieve financial goals, you must keep up with the latest developments in financial scams. Learn more about how to protect yourself from these types of financial exploitation.

The rise of financial scams is due to the increasing number of people vulnerable to these types of exploitation. The surge is also partially due to the COVID-19 pandemic. Many of these individuals are elderly, and the changes in their social interactions and health concerns have made it easier for scammers to scam them. To help prevent these types of financial exploitation, here are a few simple steps that you can take to safeguard yourself.

Overpayment on Checks

The whole fake check/overpaid check is one of the most common financial scams out there. Scammers will send along a check (for one excuse or another) but claim that the amount is more than owed. They will then ask their targets to send them the remaining amount. 

If you receive a check, make sure that you do not send it back to the person who wrote it. Also, don’t accept checks that are overpaid. If you are a seller, make sure you do not send money to a person who sent you a check. Also, don’t accept checks that are overpaid. If you are a buyer, use a secure online payment service to make a transaction.

Fake Debt Collectors

Sometimes, fraudsters will pose as debt collectors to try to get you to pay for outstanding debts you have already paid. Before you contact a debt collector, make sure that you can verify the details of the debt, such as the name of the company, address, and license number of the collection agency. You should also ask the caller to provide their contact information, such as their street address and if they have a license. Watch out for certain red flags, such as the caller’s inability to provide proof or their willingness to use threats.

Phishing Scams

Phishing scams are perhaps the most common scams out there. In most cases, these scams rely on the victims clicking on a link in an email or text message to download a file or update their password. Remember, NEVER click on a link that looks suspicious to you. When asked to reset your password, don’t click through the link in an email. Instead, head to the site directly to ensure it isn’t a scam.