[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/personal-finance\/building-wealth\/consumer-scams\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/personal-finance\/building-wealth\/consumer-scams\/","headline":"10 Scams to Watch Out For","name":"10 Scams to Watch Out For","description":"Scams have now evolved to the point where most of them aren\u2019t very obvious....","datePublished":"2019-12-27","dateModified":"2023-04-07","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/jon-dulin\/#Person","name":"Jon Dulin","url":"https:\/\/moneydoneright.com\/author\/jon-dulin\/","identifier":34,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/648ebdce1e98dff728b03045d5ad83e6bdafc140341a4ae782fbe0d05809367d?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/648ebdce1e98dff728b03045d5ad83e6bdafc140341a4ae782fbe0d05809367d?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2019\/09\/top-10-scams.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2019\/09\/top-10-scams.jpg","height":960,"width":1440},"url":"https:\/\/moneydoneright.com\/personal-finance\/building-wealth\/consumer-scams\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4","name":"10 Common Scams to Watch Out For in 2020: Craigslist, Phone Scams, and More","description":"Scams are everywhere, and scammers are only getting smarter!\n\nIn this video, I go over ten scams that you absolutely need to be aware of in 2020.\n\nThese include Craigslist scams, phone scams, Windows support scams, and more.\n\nDon't get fooled by these scams!\n\n@ScammerRevolts is the channel I mention at 4:27.  Enjoy!","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/kMf7QDNHtS4\/default.jpg","https:\/\/i.ytimg.com\/vi\/kMf7QDNHtS4\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/kMf7QDNHtS4\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/kMf7QDNHtS4\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/kMf7QDNHtS4\/maxresdefault.jpg"],"uploadDate":"2019-12-20T19:00:06+00:00","duration":"PT10M17S","embedUrl":"https:\/\/www.youtube.com\/embed\/kMf7QDNHtS4","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA#Organization","url":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA","name":"Logan Allec","description":"Logan Allec is a CPA and the founder of Choice Tax Relief, which specializes in helping people with their IRS and state tax debt.","logo":{"url":"https:\/\/yt3.ggpht.com\/43_VKqrbO06RGMcxfdQbDXosrkVRq1yf5QgSQEiR4ILUGWV9fJtTh0o2ftYMYqVo6PwnEOPRdg=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":11190}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=kMf7QDNHtS4#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":157}]},"about":["Building Wealth"],"wordCount":1935,"keywords":["youtube","podcast"],"articleBody":"Scams have now evolved to the point where most of them aren\u2019t very obvious.So don\u2019t worry. You\u2019re not stupid or ignorant for being victimized by a scam. We\u2019ve all been there.There are a number of \u201cscams\u201d going on right under our noses. We just don\u2019t realize it because they happen all the time. Some of them are perfectly legal and consistent with free-market principles.So if they\u2019re legal, why do I call them \u201cscams\u201d? I call them \u201cscams\u201d because when you — the consumer — fall for these sneaky tricks, you lose money for no apparently legitimate market-based reason.They\u2019re just ploys to get consumers to part with more of their money than perhaps they’d intended.These \u201cscams\u201d may not be illegal. But they’re unethical and wrong from a \u201cdecency\u201d standpoint.In this post are 10 of the biggest money-making scams of all time. I\u2019m going to cover both those that are illegal and those that are just a bit less-than-ethical.Call these the greatest hits!\u00a0Table of ContentsToggle#1: Caribbean One-Ring Call Scam#2: Ponzi Scheme#3: Movie Popcorn#4: Windows Support Scam#5: Scarcity#6: Fat Fingers Phone Scam#7: Craigslist Scams#8: Brand Names#9: Sexism#10: The Money Order#1: Caribbean One-Ring Call ScamDon\u2019t you hate when an unfamiliar number calls your cellphone but hangs up after only one ring?Ever been tempted to call that number back to find out why they decided to annoy you?Scammers want you to follow that temptation and ignore your phone bill.That strange call could have come from a Caribbean island nation such as the Dominican Republic, Jamaica, or Grenada, which use three-digit area area codes just like we do in the U.S.Although that mysterious phone number looks like it\u2019s from somewhere in the USA, it may actually be an international toll number (similar to those old 1-900 hotlines).If you call the number back, you may be charged a connection fee plus $3-7 per minute for as long as you\u2019re kept on the line. That\u2019s on top of the fees your mobile service provider will charge you for making an international call.If you don\u2019t normally monitor your phone bill, those callback charges may get posted to your account, and you may pay them unwittingly.Just doing that once can cost more than $20. Imagine just a few hundred people falling for this trick, and it\u2019s easy to see a few thousand dollars in scammers\u2019 pockets.Make sure you check your bill if you do call back one of these strange numbers. If there\u2019s a fishy charge, contest it with your cell company as quickly as possible.Or better yet — don\u2019t call back.#2: Ponzi SchemeIn 1920, Charles Ponzi was caught bilking unsuspecting people out of more than $200 million in today\u2019s dollars. The insidious scam that he used has come to be named after him.Here\u2019s how a Ponzi scheme works:A scammer invites you to \u201cinvest\u201d in his \u201cplan.\u201d However, instead of investing the cash as promised, the scammer uses it to pay back previous \u201cinvestors\u201d (and likely pocket some for himself).Eventually, there are more \u201cold\u201d investors than there are new, so there\u2019s no more new money flowing in. When that happens, the schemes tend to collapse.Today, there are hundreds of Ponzi scams looking to take your hard-earned cash and even your Bitcoin.#3: Movie PopcornI\u2019m not here to disparage the classic movie snack. Who doesn\u2019t love a tub of buttery, salty movie popcorn?When you make popcorn at home, it\u2019s quite cheap. You can buy a box with six microwave bags for under $2. But when you go to the movies, look out!Movie popcorn purchased at the theater is around 1,200% more expensive than the homemade stuff.Now you don\u2019t feel so bad for sneaking a bag or two in with you when you go to the movies.#4: Windows Support ScamThis scam was so prevalent and obnoxious that a few years ago the Federal Trade Commission (FTC) filed lawsuits against six companies for pulling it off on innocent Windows users.It works like this: You receive a cold call from an unknown number, but the person on the line says they\u2019re calling from \u201cWindows Technical Support.\u201dThey make claims that there are malware and virus issues on your PC, and the caller then recommends remotely \u201cfixing\u201d your computer for you or suggests you subscribe to a PC-protection service.The scammer expects you to allow them access to your computer and then installs malware on your PC. Then, the caller charges you for the privilege of \u201cfixing\u201d your computer.First, know that Microsoft does not call anyone about their PCs.Second, don\u2019t allow anyone you don\u2019t know to access your computer system.Third, if the call doesn\u2019t feel right, hang up.#5: ScarcityHow is scarcity a scam?Advertisers use this trick to get you to buy now without thinking.They know that humans make decisions based on emotion. So they put merchandise or services on sale with a note that there are \u201conly five left.\u201d \u201cWhen they\u2019re gone, they\u2019re gone.\u201dWe get excited and nervous and have to act, lest we miss out on such a great deal.But it might not really even be a deal at all.Or we might not even need it. A few hours later, the thinking side of our brains catches up and we have buyers remorse. But by then, it\u2019s too late.#6: Fat Fingers Phone ScamYou have to admit, this one is pretty clever.Have you ever dialed a number only to be told you won something or that if you take part in a short survey you can be entered for an island getaway vacation for two?I became aware of this scam a few weeks ago when I called the electric company to report a power outage.Instead of getting a representative, I got an automated message telling me about a survey and a chance for a vacation.I thought it was odd for the electric company to do this, so I hung up and tried again.But the same thing happened again. I hung up and checked the number. I\u2019d been off by one digit.It turns out this scam became popular when American Idol was on the airAs you probably remember, the show asked viewers to dial a 1-900 toll phone number and vote for a contestant. There was one unique number for each contestant.Scammers would buy a boatload of 1-900 phone numbers, all just one or two digits off from the actual voting numbers.But instead of offering you a beach vacation, there would be an automated message thanking the caller for \u201cvoting.\u201dDialing that wrong number cost the caller about $1 in tolls.Today, the \u201cfat fingers\u201d numbers often instruct you to dial another number (this one with a toll) for more vital information.The takeaway? Don\u2019t dial too quickly or you might get scammed!#7: Craigslist ScamsA number of scams have stemmed from Craigslist, but we\u2019re going to cover a couple of particularly egregious ones.One such scam is the escrow service scam.This involves a seller on Craigslist requesting that you use an escrow service to pay for the item they\u2019re selling.Unless the service suggested is escrow.com or something similar, chances are the service is run by the seller, which means once your money goes in, it\u2019s gone.The second one is a cellphone scam.This one has a prospective buyer calling you about your item and saying he can\u2019t come to you right now but wants to put your number in a service that stores your number for later.This actually signs you up for a $10-per-month membership, and it\u2019s next to impossible to get out of it.If this happens to you, get a new credit or debit card and don\u2019t bother getting a refund.#8: Brand NamesIt does pay — literally — to be a nationwide or worldwide brand.Comparison-shop painkillers, clothing, food items, and even smartphones. When you compare them evenly, you\u2019ll always find the brand-name item costs more.But why?Simple: You\u2019re paying for the brand.Does the Ralph Lauren golf shirt feel that much better than the Sears brand shirt? Maybe, but is it twice-the-price better?The same holds true for food. The brand-name frozen vegetables are more expensive but taste exactly the same as the generic versions.Don\u2019t pay more for a name. Be smarter with your money.#9: SexismMen and women should be treated equally in society. But sometimes retailers disagree.Companies will charge higher prices for the female version of a product than the male version, despite being nearly identical.Razors are a perfect example of this.The male version of the razor may be 25% less expensive than the female version. Other than the color of the razor housing, there\u2019s no difference.Don\u2019t believe me? Next time you are out shopping, see for yourself.But men fall victim to this scam as well.Just look at ladies nights at the bar. Females get in without paying a cover charge and can get discounted drinks, while males pay the cover charge and full price for drinks. Why?First, bars know that if they attract a lot of women, men will flock to them. More men equals more money in cover charges.Second, bars know men will want to buy women drinks. So by having men pay full price, the bars win.#10: The Money OrderDesperation has crept in. You\u2019re finally ready to sell that item that you just can\u2019t give away to the neighbors.You post the item to eBay or Craigslist and you get a nibble, if not a bite. A potential buyer offers you more money for the item than what you’re selling it for, and he says he’ll send it as a money order or cashier\u2019s check.All he asks is that you wire the difference back to him.The problem is that the original money order or check is a fake, but it takes several days for the bank to realize this after it\u2019s deposited.By then you have wired the difference and sent your item, but you get no money from the check. Your item and the cash you sent are gone.Yeah, ouch. But hey, at least you finally got rid of the item, right?Final ThoughtsAt the end of the day, we might differ when defining some of these as scams or just smart ways of doing business.You might see some of these \u201cscams\u201d as just people or businesses looking for ways to pad their bottom line.But if you\u2019re looking to make more money, try a more ethical approach.There are a lot of opportunities for making a quick buck out there, but if you go the legitimate route, you\u2019ll enjoy the journey and the income a lot more.Plus, there\u2019s a greater chance that you\u2019ll earn money over the long term, which means a lot more money in total.Jon Dulin has over 15 years experience in the financial services industry. He shares the knowledge and lessons learned on his personal finance website, MoneySmartGuides.com, where he helps people overcome debt and start building their wealth. His work has been featured in many top-tier publications, including The Wall Street Journal, MarketWatch, BBC, Reader’s Digest, Business Insider, and more."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Personal Finance","item":"https:\/\/moneydoneright.com\/personal-finance\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Building Wealth","item":"https:\/\/moneydoneright.com\/personal-finance\/\/building-wealth\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"10 Scams to Watch Out For","item":"https:\/\/moneydoneright.com\/personal-finance\/building-wealth\/consumer-scams\/#breadcrumbitem"}]}]