You are proactive about providing for your family, setting money aside for the future, and pursuing your financial goals. So, it can be devastating to get hit by a financial scam that wipes away years of hard work and planning.
One of the best things you can do is educate yourself about common financial scams. Watch for warning signs, so you do not fall victim to one of these scams.
5 Common Financial Scams
Here are some of the most common financial scams to avoid right now:
- Mortgage Closing Fraud: Some scammers target people who are ready to close on a home purchase. They pose as the real estate agent using text messages and emails with the goal of stealing account information to get access to the closing costs or down payment. Always verify the message with your real estate agent directly before sending account information.
- Check Overpayment: You receive a “prize” – a counterfeit check in the mail. The scammer asks you to send money back to cover the fees and taxes or to return a portion of the money for the overpayment. Never send money back when receiving an unknown check.
- Debt Collection: Scammers sometimes pose as debt collection companies in an attempt to try to access your bank account information. For example, they contact you asking you to pay debts you owe, but your payments go to the wrong place. Use caution – do not share your personal information without verifying that the debt collection agency is legitimate. Ask for written verification and do your research before sending money.
- Identity Theft: Emails, texts, and ransomware are all ways scammers try to access your personal information so they can open accounts in your name or use your existing bank accounts. Never click on a link if you receive an unsolicited email or text message. Also, be proactive about downloading antivirus software to prevent ransomware on your computer.
- Charity Scams: These scams target retirees, particularly scammers reaching out to ask for donations for a charity organization. The intent is to create an emotional response, so people send money to a fake charity.
Protect Your Financial Future
Unfortunately, we live in a time when scammers are rampant, especially with the easy access available online. As a result, people of all ages need to be diligent about protecting their personal and financial information to minimize the risk of falling victim to a scam.
At Bulman Wealth Group, we help families with financial planning and preparation for the future. Contact us to schedule a consultation for more information about financial strategies available to you.