How to Protect Yourself Against Any Financial Scam

Financial scams come in many shapes and sizes. But whether it’s email phishing, phony phone calls, or sketchy services, the fraudsters behind them all want to trick you into paying for something you don’t need—at best. At worst, they’re out to rob you.

However, while scammers are becoming increasingly clever, there are some tried and true tactics to help keep your finances secure, no matter how they try to fool you.

When in doubt, don’t offer your personal info

Did the “IRS” call to demand payment on the taxes you didn’t know you owed? Did you receive an email asking you to reset the password to your online banking account?

Scams all begin with a request for money or personal information. Some, like that email, may seem innocent enough, especially if the hacker went through the trouble to replicate the logo and branding of the company that’s supposedly messaging you.

As a rule of thumb, never give away information until you’re sure the request is legit. And that brings us to our next tip…

Ask a lot of questions

Some scams are easy to spot, while others disguise themselves well. For example, if you receive an intriguing email offer that seems real but you’ve never heard of the company, research it online or better yet—call customer support.

Ask questions to verify that the company is legitimate, and that your computer won’t, in fact, be infected with malware if you click on that offer.

Don’t over-pay for debt services

If you’re repaying student loans or carrying credit card debt, you may have received offers from debt settlement companies wanting to consolidate or lower your balances. Unless the company is authorized to offer a Debt Management Plan, this is essentially a scam.

While they might be able to reduce your interest or negotiate with creditors, they’ll charge high fees. As an alternative, you can negotiate with your creditors on your own—for free. It may take a little time, but in the end you’ll save money.

BALANCE