Cons artists have been practicing their craft for generations however in this day and age of instant information it has become increasingly easy for them to find their marks. Whether through the Internet
in the form of emails scams or businesses that advertise in the local paper, scams are all around us. Managing your finances in the current economy is challenging enough without complicating the situation by becoming the victim of a scam or con. Of course the blame should be placed squarely on the shoulders of the dishonest individuals who run these scams, however consumers must accept their role in this problem. In almost every instance where a scam has been successful, the consumer at some point made a mistake that could have have been avoided. That is why it is important to understand how we get ripped off and what to do to avoid being the victim of a scam.
Recognizing a scam- There are some scams that are so obvious it is almost impossible to not recognize them for what they are. That is not the case in every circumstance. In fact many people are getting ripped off every day by purchasing products that do not perform as promised or paying fees for services which drain you of your hard earned cash. A scam doesn’t have to come in the form of an email asking you to send money to Nigeria, it can happen by simply paying too much money for products and services you use each day. While there are some scams that are definitely illegal, more often they often just on the legal side of the law. To avoid getting ripped off you must first get in the habit of spotting and avoiding scams.
Beef up math skills- Americans are really falling behind in math skills. You have no doubt seen this problem numerous times at a cash register when the clerk is figuring change. If you can’t perform simply mathematical tasks you are at a distinct disadvantage when performing any financial transactions. When this occurs during a loan process or managing your credit card debt, you will undoubtedly end up paying more money than you should in the long run.
Spotting a liar- The people who are most skilled at performing a scam are also the best liars. We have become a society where trust is not easily given to strangers yet an alarming number of people fail to recognize con artists because they are well dressed and portray themselves as legitimate business men and women. Con artists are most often charming, manipulative and very convincing. They can lie without missing a beat and have no concern if the deal they are making is going to put you in the poor house. This means consumers have to be especially vigilant whenever they are making decisions which involve their finances. If a deal sounds to good to be true, it more than likely is.
Read the fine print- This advice has been passed down for generations when agreeing to a contract which is legally binding. Amazingly many consumers fail to heed this advice and enter into financial agreements without fulling understanding the terms and conditions to which they have agreed to be bound. Debt relief scams, investments scams, even less expensive scams that enroll you in monthly subscriptions are almost always legal due to the fact they disclose all the information necessary to make an informed decision. It is up to the consumer to ferret out these details and understand exactly what they are getting into before signing on the bottom line.
There are too many scams happening around the country to list them all in one place. It is imperative consumers stop thinking it can’t happen to them and begin looking at each transaction closely to ensure they are not getting ripped off. Being overly vigilant is sometimes the only way to avoid being the victim of the next scam.
By now, we have all seen a celebrity endorsement of some kind on television or in print. Some make sense (Sally Field 
for osteoporosis medications – I believe her) and others that just don’t compute (all endorsements by Gary Coleman). Celebrity endorsements, no matter how far-fetched they may seem are around and will continue to be around because they work. On some level, there is something inside most humans that do believe if the rich and famous are doing it, we have to get on board too.
However, marketing power people know just what they are doing and how to sell product. Even the most ridiculous products can find an audience of believers. With that audience often comes deep pockets. Those willing to hand over cash for any number of miraculous pills or instant cures are plentiful but falling for a fad realistically is just a big waste of money.
So how can you tell what products are trustworthy and which are better left on the shelf? Here are a few things to consider when contemplating your next purchase of a miracle anything:
Backed By Tangible Evidence?
Marketing teams often use “real stories” from “real people” because it is human nature to feel compassion. But often times those “real stories” are dramatized heavily. Claims that just don’t make a lot of logical sense probably are not worth your time or money. Are you getting the real story? Is the miracle vitamin they want to sell you really going to work?
Research Product Reliability
Do some legwork to look at any research provided. Any new medication or treatment should be tested on a large number of people and include both the actual treatment as well as a placebo in an environment where testers and participants do not know who took which product. Those studies that involve animal testing or with a controlled group provide no real answers of effectiveness.
Spokesperson Benefit
Those touting the product, especially the famous people, make have a stake in the profits. Be wary of why people are vouching for a specific product. There may be some cases where the person really is backing the product wholeheartedly and not for financial gain but be aware of those who have something else to sell, like accessory products, or a book.
Remain Skeptical in Words
The marketing team know how to use the buzz words like ‘miracle’, ‘wonder drug’, and ‘cure-all’. Many also work hard to explain away why their particular product is not endorsed by the medical community or why the popularity of the product is low. It can be easy to get caught up in buzz words and buy something you don’t want, don’t need, and can’t afford.
Marketing is a big industry and people are getting craftier every day, finding ways to really hit their target market. Sticking with a budget is a sure-fire way to understand what you can and can’t afford. Forget the famous faces and the big propaganda. If there is a product you are really interested in, take the time to see what it really is all about instead of just following the lead of someone else.
Scam artists are nothing new; in fact they have been around since the beginning of time. There are scams targeted toward the young and old, the rich and poor and everyone in between. When it comes to investing your money you must be aware of the fact that there are a lot of people or companies out there offering stock or investment advice that are interested only in separating you from your money. Avoid becoming their next victim by recognizing the following warning signs that you may be dealing with an individual or company that is not legitimate.
- Guarantees a return- There is always risk involved with the stock market. If you are looking for a “safe” place to invest your money you are better off buying a bank CD or treasury bond. Beware of anyone who guarantees an amazing return.
- Email or infomercials- Common sense would tell you that any investment opportunity that you find in the early morning hours on television or unsolicited in your inbox is a scam. Unfortunately due to the large number of people who fall for this scam it requires a mention.
- Investment seminars- Many investment seminars charge thousands of dollars and the only thing you get in return for your trouble is an invitation to attend another seminar or an offer to pay for software or other advice that is supposed to “help” you with your investments.
- Unknown companies- Look for names that you recognize when considering investments. If the name is not familiar do your research. In many cases when the company touting the investments in not known it is a sign of a scam. Note: Familiar or popular companies do not automatically equal a good investment. You should always research companies regardless of the popularity of their name before investing your money.
- Hard sells- It’s your money and you shouldn’t feel pressured to invest it anywhere. If the person trying to sell the stock is too pushy he isn’t looking out for your best interest, rather his own.
- Sounds too good to be true- As with all things in life if it sounds to good to be true, it probably is. It is common for first time investors to fall for penny stock scams, pyramid deals and Ponzi scams.
It is important to keep a vigilant eye on your money at all times. With the current state of the economy people are desperate for money and con artists are on the prowl looking to take advantage of anyone who is willing to risk investing money in the hopes of a big payoff. Protect yourself by questioning the source of information and paying special attention to any tips or offers that claim to generate high yields with no risk.
First, let us get these statements out of the way before we tackle this issue: Money Merge Accounts (or Mortgage Accelerators) are real. But the more important question is “do they work?” The answer to that is “yes.” But, here is where there is a great divide on the philosophy about these systems: You can do the same thing that these programs purportedly do only you will not have to pay between $2,000 and $6,000 for a fancy program.
The chief opposition to that statement is that most people will not and do not have the discipline to make extra payments on their mortgage, so this program sets them up to pay off their mortgage sooner and save money on interest, while putting their finances on ‘autopilot.’
Here’s the relevant question for those who are pushing a MMA: Is the purpose of this program to save money on your mortgage interest or is it to create discipline on the part of the individual? If it is to save money on interest, again, you can do that on your own. If it is to create discipline, that can be accomplished without spending ANY money. So the MMA provides no advantage on either point.
Keep these issues in mind when being hounded by those who (with good intentions) are attempting to get you into this type of program.
- These programs are not free and they do not save money in a manner that would make it worth the costs that are required to enter the program.
- Most of these programs require you to have a HELOC (Home Equity Line of credit) which brings with it additional problems and costs.
- Consider that paying off your mortgage faster/sooner might not be the best use of your money.
Finally, if you are looking for an automatic way of paying your mortgage every month, or bi-weekly, that can be arranged by having your paycheck auto-deposited into a bank account which allows you to set up a bill scheduling and payment plan in order to make your payments for you. Using this technique, you can make that extra payment every year and never have to raise a finger to make it happen.
There are many tools and options available for those who want to use them other than paying a very high amount of money just to get into a fancy bill payment system that is demonstrably not better than just using your own resources and common sense. Let the comments on this issue begin.
Ever heard of magicJack
But, there seems to be some controversy over the product and whether it performs up to par for those who install and begin to use the product and service.
What works well? The service is based upon what is called Voice over Internet Protocol or VoIP for short. This is the technology that allows voice signals to be sent over the Internet through a high-speed connection. The phones capture voice waves and converts them into digital ‘packets’ which flow through the Internet just as other data packets.
The magicJack product is compatible with Windows XP and Vista operating systems and Apple’s Mac OS as well. Installation requires a small device that plugs into the USB port on your PC and software that installs onto your hard drive which communicates with the USB device. You can then send and receive calls in the USA, Canada, Puerto Rico, and the US Virgin Islands. The ultimate question about any product is ‘does it work?’ The answer is a resounding ‘yes.’
One bit of advice, however. On Windows PCs, be sure to set a System Restore point before you start ANY installation. Some installers automatically perform this step, but be sure that it happens. That way, if this software does not work for some reason, then you can remove it via a System Restore. If you do not know how to do these steps, go to support.microsoft.com and search on System Restore and you will find instructions there for Windows XP and Vista.
What are the concerns? There are complaints about the installation of the software in that it has caused problems with PCs. Sometimes the software does not work properly and other times it causes other PC issues. This is the same with any software that you install. The finger of blame cannot be pointed at magicJack completely. There is a need to be vigilant in the installation and use of any software that you add to your PC.
Questionable Marketing Tactics. In advertising their product and service, magicJack promotes a ‘free trial for 30 days’ offer that is supposed to allow you to use the service in order to try it out. Many complaints have been filed that even though it is supposed to be ‘free’, credit card charges show up anyway, and there is little or no way to get them reversed.
Support issues. In setting up an organization that sells a product and service such as this, support issues should be planned for in advance. However, most companies that market these types of products rely on overseas technical support and a thin layer of support above that in order to keep costs low and profits high. What this means is that you might have a frustrating experience should you need to initiate contact with their support department. And it appears that the same is true for the billing department.
Your actual service may vary. Users have reported a myriad of issues with sending and receiving calls. Some numbers work better than others. Subsequently, some users have nothing but praise for the product and the money that they save with its use. Even for military service personnel, magicJack has provided inexpensive conversations with loved ones.
One final issue with the magicJack product: you have to keep your PC powered on and connected to the Internet in order for it to be available to take calls all of the time. True, the forwarding feature to a cell phone and voice mailbox is good, but it defeats the purpose of the product. And we are used to having phone systems that are on all of the time without having to depend on another piece of equipment to be on as well. This might not be a big issue with most people, but others might take issue.
It appears that the success of magicJack depends on your own personal experience. What is right for some, might not be for others. If you are used to solid, consistent phone service and it is needed for emergency situations, then magicJack is probably not right for you. But if you are budget conscious and need an alternate to traditional phone service, you might be happy with MagicJack
Just be careful and keep in mind that this is a product that is still relatively new and many ‘bugs’ are still being worked out to increase customer satisfaction.
Looking to Purchase a MagicJack? Buy a Brand New Magic Jack from Amazon.com for Just $38.00 and get your first year of service free.
No one can guarantee that you will not fall victim to identity theft. If they do, they are lying. The best you can do is to protect your identity by using some basic steps.
Watch your mailbox very carefully. You need to retrieve your mail from your box as soon as you can after it has been delivered. Thieves steal credit card advertising offers and apply in your name while changing the address. Never mail letters from your home by using the red flag on your mailbox. Always deliver you items to be mailed directly to the post office.
Secure your social security number. Do not carry your card with you or any other document that contains your number. Do not put your number on your checks. Be aggressive about protecting your number. Ask if it is mandatory to be included on applications for insurance, for example. Also, find out what the privacy policies are in protecting your information.
Get rid of statements and other financial records. Use a shredding machine to completely and permanently wipe out credit card statements, offers or any other item that contains personal and private information on your finances.
Destroy receipts from credit card transactions. Never allow your credit card receipts or ATM slips to be left behind – even in a waste receptacle. Take them with you and shred them, too.
Do not allow your credit card out of your sight. Even when paying at a merchant, keep your card in sight at all times. If you are asked to run your card again, ask why and ask for a receipt that shows only ONE transaction.
Screen all phone calls. Before you offer any information about your identity, find out who is calling and what the purpose is for the call. Then, take it a step farther and tell them that you will call them back after you can verify that they are from a legitimate company.
Add your name to the do-not-call registry. Make a priority to add your name and phone number to the national do-not-call registry by calling 1-888-382-1222. This will prevent a lot of junk mail as it will opt you out of credit card solicitations.
Check your credit report. You are allowed a free look at your credit report every year, but you might want to check it more often than that. Look for irregularities that you do not recognize. If you find something, then contact the creditor as soon as possible.
Examine your credit card statements carefully. Or, check them regularly online for suspicious activity.
Perform these steps to help prevent identity theft and problems with your credit.
A lot of people who leveraged themselves to heavily are now finding themselves pinched because of lay-offs, pay-cuts and a general lack of available financing for those that do not have good credit. To get themselves afloat, many people will take on an extra job, sell some personal possessions and cut back. Others commit insurance fraud by starting their vehicles on fire. I guess that’s -one- way to make some extra cash when you’re in dire straits. Apparently a lot more people have been choosing “option b” in the last year and a half.
The Las Vegas police department has a special automotive theft unit that keeps track of the number of automotive-related arson claims that they receive each year. According to a recent Wall Street Journal article, In 2007, when gas prices began to spike pretty heavily, the number of claims began to jump. In 2008, the rates climbed by 6% nationally. In some harder-hit areas such as Michigan, New York, Indiana, the number of arson rates increased by 15% between 2007 and 2008!
Why are some people so quick to destroy their vehicles and collect on the insurance money? Why not just sell the vehicle they have to reduce the amount of leverage that they have? It turns out that in many of these situations the owners of the vehicles owe more on their vehicles than they are worth and would actually have to cover the difference if they tried to sell their vehicle.
The Wall Street Journal article interviewed a number of different people, including James Quiggle from the Coalition against Insurance Fraud, an industry-backed group. He probably had the best quote in the article, “They look at this as their own personal stimulus package”. Quiggle continued, “the economy is stretching people to the breaking point and some of them are willing to risk criminal conviction.”
Instead of finding a way to get some extra cash, some consumers are deciding that ditching their vehicle, reporting it stolen, collecting the insurance money and paying it off with those funds is a better way to go. This way, they will be free from responsibility to the vehicle and the automotive company and their credit scores will not be damaged. You might not think that protecting one’s credit score would be that important, but apparently to some people, it is.
If you’re in a situation that you have a vehicle that you can’t afford anymore, just sell the vehicle. If you owe more on it than it’s worth, just borrow the difference by getting a small unsecured personal loan through a local bank or credit union or through sites such as Prosper.com and Lending Club, so that you can get your vehicle sold with a clear title.
In the last few years, a number of “service review” websites have been developed that allow consumers to share their experiences with restaurants, hotels, entertainment destinations, professional services, and even doctors with one another. When a professional receives positive reviews on review sites like Yelp.com, they often see a significant increase in business. Conversely, those who don’t poor reviews are often hurting for business. Some who have received bad reviews have as gone as far as litigating commenters who post negative reviews.
The first lawsuit of this kind occurred after a man named Christopher Norberg wrote a negative review about the chiropractor he visited, specifically with some of the chiropractor’s billing methods and how they were not fair in dealing with insurance companies. At first the chiropractor complained and demanded that Norberg remove the review, but Norberg reviewed. Eventually the chiropractor, Steven Biegel of Advanced Chiropractic Center, sued Norberg for libel and invasion of privacy. Eventually, the case was quietly settled out of court.
Another suit occurred in January of 2009 when a pediatric dentist of Foster City, CA sued two consumers over negative reviews that they had written on Yelp.com. The consumers had criticized the dentist for giving their son fillings that used Mercury. The Dentist, Yvonne Wong, commented “I don’t want these lies to be posted on the Web site about me–I’m not looking for money” to the San Francisco Chronicle. Wong stated that she was forced to sue for libel after Yelp.com refused to take the reviews down.
Although these suits are currently few and far between, there is a trend emerging. This doesn’t mean that you shouldn’t ever post less than favorable reviews on sites like Yelp and TripAdvisor, but rather that you should be careful with what you write. Remember to stick to the facts. It’s perfectly okay to express your opinions, but make sure to do so in a manner that’s honest and won’t open you up for a lawsuit.
For the most part, doing business on the Internet is a positive experience. Not to mention that you can get very good deals even with shipping and handling charges. Case in point: a local merchant had prices of $39.95 and up on new cell phone batteries. But online the identical battery was found for less than $6.00 and shipping was just $3.00. Worth it? You bet!
However, what about those times when you have a bad experience with something you purchased from a merchant many miles away? Here are some tips to help make sure you have a happy ending to your experience.
Before you buy. Part of the process of making a purchase on the Internet has to do with researching from whom you are buying. Make sure that the company is reputable. There are several ways to do this. First, many websites carry the Better Business Bureau icon to let buyers know that they at least care about customer satisfaction.
But this is not always a sure-fire way of insuring this, so you must go an extra step. Look up the name of the merchant on Google or any other search engine with the word ‘dispute’ or ‘fraud’ after them. You might be surprised to find out information about the company that you would otherwise have missed. Just keep in mind that there are forums that feature entries from disillusioned buyers who had an isolated bad experience. Look for trends in viewing the results of your search.
Check and Double Check. Make sure your order is correct before you click ‘submit.’ Many mistakes are made by the buyers which can cause the same amount of angst over a purchase. To help in this, be sure to print out a copy of your order to keep handy. Or, make a screen copy of the window and paste it into a document for later reference.
Make Every Effort. If you find an error in your order, contact the merchant as soon as possible. Never allow the trail to grow cold on a mistake. It is always easier for merchants to remember or find information regarding your transaction of it is done soon thereafter. Be persistent, but not rude or cruel. Remember that these merchants handle many, many transactions during the course of their work and it might be difficult to keep you separated in their mind from all of the rest.
Find a Way to Resolve it. Make every effort to resolve the problem. Keep an open mind and realize that part of the error might be on your end, too. If the merchant offers a resolution, look at it realistically and make a determination if fixes the situation to your satisfaction. If not, then make sure that you communicate the reasons that you are still unhappy.
There are some government organizations that can help with merchants who treat customers badly. If you feel that is the case, then contact your local state Attorney General’s office.
Keep these points in mind and have a great experience on the Internet with your next purchase.
Identity theft is a growing problem in the United States, but a lot of the solutions that banks and other companies propose to stop identity thieves aren’t nearly as effective as a recently introduced process offered by the three major credit bureaus. Monitoring services only let you know that your identity has been stolen after it’s already happened, but the process of “freezing your credit” makes it almost impossible for identity thieves to open lines of credit in your name, even when they have full access to your personal information.
The term is called a “credit freeze” because your credit is literally frozen. If your credit is frozen and a bank tries to query your credit report because someone applied for credit in your name, they won’t be able to access your credit report. It will be as if your credit file did not exist. Anyone who has your personal information will not be able to use your identity to establish new lines of credit in your name any more than they would of a newborn baby with zero credit history to speak of.
The initial cost to freeze your credit will be $10.00 per credit bureau, or $30.00 total. Certain states allow customers to file for a credit freeze for free. Victims of identity theft may also be able to freeze their credit for free. You might want to research your state’s laws with a simple Google search to see if there’s a way for you to request a credit freeze at a better rate than what the three major Credit Bureaus are offering.
Equifax, TransUnion and Experian each have slightly different processes for getting your credit frozen, so you’ll want to read their full instructions on their websites, which are TransUnion.com, Experian.com, and Equifax.com respectively. If you aren’t technically savvy, you can also request to freeze your credit by Phone. Experian’s number is 1-888-397-3742. Equifax‘s phone number is call 1-800-685-1111 and TransUnion’s phone number is 1-888-909-8872.
If you freeze your credit, you will need to remember to “thaw” your credit and temporarily make it accessible to potential creditors in the event that you want to apply for any kind of loan or rent an apartment. Fortunately the process of thawing and freezing your credit is relatively simple and can be done online.
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