The Basics of Spotting a Scam

Especially in times of economic recession, scam artists are everywhere, plying their unsavory trade in an effort to take advantage of innocent people who are dealing with dire financial situations or credit issues and looking for quick solutions to their problems. These scammers often run their nefarious schemes over the phone or, increasingly these days, online. With their professional–sounding style, seemingly solid grasp of sophisticated financial terminology, and often-irresistible offers of loans (student loans, credit card loans, etc.) that can fit the bill for what you need at the time, they can be hard to pass up.

Don’t Be Fooled

However, despite the fact that the scammers can appear to be no different than the many perfectly legitimate entities loaning money to individuals these days, the fact is, they are completely criminal. Once they have lured you in and gotten their hands into your pockets, they can wreak absolute financial havoc.

There are a few telltale signs that you are dealing with a con artist:

  • If someone contacts you with the promise of a loan and asks you to pay some type of advance fee before they deliver your funds.
  • If someone contacting you informs you that you are guaranteed a loan without you needing to meet any requirements.
  • If, as part of the lending process, you are asked to pay an individual, or someone who is not a registered lender in your state.

Knowledge Really Is Power

Scammers know how to get ahold of the names of individuals who are likely candidates for certain types of loans, and once they’ve made contact with those people, can be quite skilled at luring them in. Just being aware that scam artists exist can help prevent you from becoming one of their victims. Stay tuned to our regular scam reports to keep yourself informed and protected from these criminals.