Don’t Be Money Fool This April

April 3, 2017 by wealthx

April, 1st is known as Fool’s day all over the world by playing a prank or spreading a hoax, the joke and their victims are called April fool. As the day come we all become alerted and try not to be a victim of the prank. But we forget to maintain the same alertness throughout the year. Yes, you, believe it or not, there are many instances when you become a victim of such pranks. I am talking about financial pranks/frauds which are happening daily around us. Don’t be money fool going forward. Below are the few points keep in your mind to avoid become a victim.

• Banking Fraud

You got a call from your banker about some very good offer on a home loan, credit card, a car loan at the irresistible interest rate. You jump in and grab the offer for let say a home loan. Initially for first-year interest rates are 1% below than the prevailing rates in the market. So for the first year, you are happy and feeling lucky to have such great banking offer. You keep on paying EMI regularly year on year and suddenly one day you check your loan balance. Which is not moved much in past years. You then check the current loan percentage. And to your surprise, you found it is higher by 1.5% to 2% as compare to market rates. This has happened to you because banks are giving discounts for an initial period to acquire customers. Once you are their customer they start charging you higher rates which will compensate the initial loss. So be aware about the every details of the loan before you finalize.

• Phishing Fraud

Phishing is usually done through email, ads, or by sites that look similar to sites you already use. For example, someone who is phishing might send you an email that looks like it’s from your bank so that you’ll give them information about your bank account. Phishing emails of the site might ask for details of your bank account number, user ID, and password, PIN(personal Identification Number), credit card details, your mother’s maiden name, your birthday etc. Be careful every time you get an email from a site asking for personal information. If you get such type of email, never click on the link provided in the email. Directly report to your bank about such suspicious emails. Banks are never asking for such details from its customers. These details are very personal and the even bank can’t ask it from you.

• Multi Level Marketing Fraud

In MLM you get two types of revenues. One is a direct sale of product and second is referral you get to enroll in the scheme. These type of schemes are quite seductive because they may be able to deliver a high rate of return to a few early investors for a short period of time. Yet, illegal because they inevitably must fall apart. Generally, these type of schemes keeps you engage by way of filling up survey, clicking on advertisement links etc. No program can recruit new members forever and with an upfront payment. It is basically a cycle where your invested money is given to the person joined before you and the same way you will get your share from the people joining you. This cycle can break any time without notice so you never know when money will stop coming to you. I can confidently say that this type of schemes are a scam. Don’t be fool by initial lucrative returns gained through such scheme.

• Lottery Prize Fraud

Most of us have got an SMS that we have won 1 million dollars as a lucky winner in Coca-Cola or BMW lottery. They ask you to get in touch with them to know how to claim your money. When you go a step ahead and inquire about how to claim the money, they ask you to fill up some personal and demographic details and transfer some amount of money as processing charges. The amount could be anything from 10k to 50k depending upon the scheme. If you deposit/transfer money your money is gone. Nothing, in turn, will come to you. How can you expect to be a winner of the lottery you never enroll? Still, we go by our emotion or greed and transfer money to such scammers.

• Charity Fraud

Charity fraud is the act of using deception to get money from people who believe they are making donations to charities. Often a person or a group of people will make material representations that they are a charity or part of a charity and ask prospective donors for contributions to the non-existent charity. fake charity collectors prey on your sympathy by asking you to make a donation to a worthy cause. A fraudster will either pose as a collector for a charity they’ve made up, or they misuse the name of a genuine, often well-known, charity. They may be collecting sponsorship money for an event that they won’t take part in or doesn’t even exist. In any of these cases, the money you donate doesn’t go to charity, the fraudsters keep it for themselves.

Protect yourself

-Charities always need to be registered and have a license if they’re collecting in a public place.
-If the charity is genuine, check the collection is authorized, too. Call the charity directly or look them up using a phone book or a website (don’t accept websites or numbers provided by a collector).
-If in doubt, tell the collector you’ll donate directly to the charity yourself.

If you’re asked to donate clothing or household items, fraudsters sell them on but keep the money rather than giving it to people in need.

As a literate and sensible citizen, we must not fall for greedy offers/schemes and should check thoroughly its integrity.

These are the top most scam which has looted many people around. Lucky if you are not one of them. Tell me if you have come across any other fraud around you.  Check More on WealthX.in