Top Five Scams You Can Avoid

Did you know that thousands of people fall for too good to be true scams in the United States each year? Did you know that most people think they are too smart to be scammed just to fall for some of the most popular schemes that scammers use? Here are top five scams that you can avoid.

Scam 1: Emails or Phone Calls That Claim They Need to Verify Your Personal Information

When you receive an email or phonecall requesting that you verify personal information such as confirmation of your social security number, date of birth, credit card information or any other similar personal requests, do not provide them with the information. These scammers tend to be very savvy and claim that someone else is trying to access your information and they want to help you avoid identity theft. Instead of providing information to them, contact your credit card company yourself. When you contact your credit card company, make sure you dial all of the correct numbers in the toll free numbers. Another popular trick that scammers use is to purchase a toll free number that resembles a legitimate number but may be off by one digit.

Scam 2: Claims that you won a sweepstakes or prize

If you won a sweepstakes or prize, according the U.S. laws and regulations, the sweepstakes company will need to contact you in writing to provide you enough time to claim your prize. If can always ask them to confirm when you entered the sweepstakes and what type of information they need. Do not feel pressured to provide information to anyone especially if they give you an arbitrary urgent deadline.

Scam 3: Donation solicitations for non-existent causes

If you feel generous and would like to donate, there are a number of legitimate not for profit organizations, such as the United Way, which makes it their mission to identify legitimate not for profit organizations in need of donations. You can also ask to review their most recent financial tax returns which if there are legitimate not for profit organizations, such have this type of information available to the public.

Scam 4: Free tickets or vacations

This is one of the oldest scams out there, companies claim that you can have free tickets or vacations just to force you to a four to six hour lecture on buying a "timeshare" or other arbitrary investment. Your vacation time should not be wasted on these scams. Read the fine print on all offers and avoid any such free tickets or vacation claims. There is no such "free lunch."

Scam 5: Investments too good to be true

A number of scammers claim that they can provide you with greater than average returns on your investment. This usually happens with acquaintances because with strangers we all tend to know better. So, even if someone is a close friend or acquaintance, do your own due diligence.