Financial Scams

On any given day, you may receive an email that is claiming you can make millions from the comfort of your own home. Or, if you are looking to make money online, there are hundreds of thousands of online companies who would gladly take your money and send you an outdated e-book that offers nothing in the way of financial value.

According to the U.S. Securities and Exchange Commission, there are “hundreds of online investment newsletters that claim to offer invaluable information. But, there are many fraudsters who lie about the payments they received, their independence, their so-called research, and their track records. Their newsletters masquerade as sources of unbiased information, when in fact they stand to profit handsomely if they convince investors to buy or sell particular stocks.”

You may also receive several emails from people who claim they “need your help”. They send a long letter explaining their dire circumstances before getting to the real point of the letter: opening a bank account so that they can send you millions of foreign currency to be deposited in your bank. You, in turn, send them back the money in US dollars (after a large commission is given to you), and all is well. It’s not; its fraud and you can be held legally liable.

Another financial scam is the “get rich quick” scheme. For example, have you seen the ad “How to Make Money from Your Home Computer?” The claim made is that all you have to do is send in $5.00 and you will make over $50,000 in return. This is analogous to the old pyramid scheme in which you, as the participant, sign up as many people as you can in order to make money. The truth is the only person making money is the character who set up this scam in the first place.

If it’s too good to be true, it usually is. There are so many people online who hide behind their computers and develop online financial scams to lure unsuspecting people with promises of riches and fame.

You know the ads, “I made $10,000 in one week and I didn’t have to spend a penny!” Or, “You too can make a fortune if you follow my simple plan.” This is usually followed by a payment box for $149.00 or more. Or how about this one: “I started with nothing and now I make millions without having to turn on the computer!”

Since the internet is not regulated in any way, anyone with a computer can come up with a scheme. Sometimes they do profit from it, but the more you know about financial scams the less likely it is that you become a target.

Utilize the spam control on your computer; do not respond to emails from people you do not know. And most importantly: if you need financial assistance, do it the old fashioned way – go into a bank or call their customer service number directly.