As the unemployment rate continues to rise, scammers are seeking to take advantage of unemployed Americans’ compromised financial position.
According a report on MarketWatch, rising unemployment typically leads to a rise in the number of active scam artists. Today, as countless unemployed Americans experience financial insecurity, they become more and more vulnerable to false promises of large profits.
What to Watch For
Here are some helpful tips to avoid the preying eyes of scam artists:
- Up-front fees: If an initial fee is required to get a job, like a fee for an application or an exam, it is likely a scam. Sometimes, scammers will ask for an applicant’s credit card or bank account numbers. Job seekers should ignore such requests. According to the director of the Federal Trade Commission’s consumer protection bureau, David Vladeck, “[n]o one should pay to get a job.” Proving that many people fall prey to such ploys, Vladeck says that some companies have made millions of dollars from bogus up-front fees.
- “Business Opportunities”: A popular trick by scam artists is to offer investment opportunities for jobless people who are looking to expand their savings. According to reports, signs of a phony business investment include promises of unreasonably high profits, as well as claims that the investor knows a secret about securing lofty returns. So, if an “investor” promises you a 20 percent profit based on some insider secrets, kindly tell them to buzz off.
- Other scams: Common scams include promises of working at home, phony rebate schemes, and bogus offers to perform processing of medical records that don’t actually exist. One key to avoid a scam: if an advertisement offers a “guaranteed job,” it is probably too good to be true.
If you steer clear of these financial pitfalls, you ought to be safe from many widely used scams.
But be warned, there is another scam that is equally nefarious. This involves efforts by scammers making false offers to help you eliminate your debt.
While such offers can be enticing, especially if you are facing catastrophic financial events such as the loss of your house or car, be wary of paying fees to a service that promises to eliminate your debt. A common tactic by fraudulent debt reduction services is to charge large, up-front fees over the phone.
Starting on October 27, this ploy will be illegal, so if you receive such an offer, know that it is probably a scam.
In order to avoid the hassle and potential scams involved with debt reduction services, a safer option to explore is personal bankruptcy. While it may not be the best fit for everyone, personal bankruptcy can help you reorganize your debts so you can pay at a more reasonable pace.
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Tags: Unemployed
Posted August 18, 2010 by Amelie Hampton under Bankruptcy Articles