Avoiding rip-offs

When you’re struggling with money, it’s really important to make sure you’re careful about whom you give money to. There are people out there who’d like to take advantage of your situation and get you to part with the money you do have, often by promising you something great in return. Jasmine Birtles has created a list of hints and tips on how to spot when you’re being ripped off and avoid it in the future.

• Don’t send money upfront
  If a company asks you to send them money upfront to get started in your new career then chances are it’s a rip-off. Don’t send any money until you’ve checked out the company. If you don’t hand over any money, you can’t lose any money.
  
  
• Never give out your bank details
  If a fraudster has your bank details, chances are they’ll clean out your account. Be extremely wary about who you give your details to.
  
  Don’t forget to exercise a bit of judgement here though; many legitimate companies pay their staff by transferring money into their bank accounts so they’ll need to know your account details. For example, TNS is one of the largest companies that take on mystery shoppers, and they ask for new participants’ bank details when going through the registration process. Some online survey sites operate in the same way. But if you have a strange feeling about the company, it’s probably best not to get involved.
  
  
• Don’t ring premium rate numbers
  Premium numbers in the UK start with 090 and ringing them to claim your usually bogus prize will cost you a fortune. Increasingly, scammers are targeting mobile phones so be wary of returning a missed call from a number you don’t recognise or replying to a text message that asks you to reply so you can claim a prize.  They may be charged at a premium rate too.
  
  
• Don’t buy something to win a prize
  Scammers are very clever and persuasive but you should always be extremely sceptical of any offer that requires you to spend money in order to win something.
  
  
• Keep shops, banks and service companies at arm’s length
  Even though they’ll give you that cheesy smile and pretend to be your friend, ultimately they want to make money out of you. Take a step back and try to remain objective about what products they’re trying to sell you. Buy things because they’re right for you and not just because you feel guilty about saying no.
  
  
• Be aware of the dangers of giving out your details
  Whether it’s on the internet or on your phone, digital technology means that it’s increasingly easy to copy these details and use them. This is especially true when using your credit or debit card.
  
  
• Beware of homeworking schemes
  Why? Because “work from home” schemes are one of the most common areas you can be ripped off. As well as adverts online, companies may advertise in shop windows promising you work for doing something like envelope stuffing. But to get the work, you’re asked to pay for a starter pack or kit. You may also see ads asking you to pay for a directory of homeworking opportunities.
  
  Don’t fall for any of these – there’s no guarantee you’ll get what’s being advertised (the chances are, you won’t) and it’s hard to get your money back once you’ve handed it over.
  
  
• You are not a bank
  Beware of companies which ask you to do any kind of financial transaction, or offer to pay money into your bank account for doing very little.
  
  This might involve someone claiming to be from a foreign country and asking you for help in transferring money out of the country. They say they’ll pay a huge sum of money into your account and let you keep a percentage of the money in exchange for your cash.
  
  Just think about this for a minute. If you were in possession of thousands of pounds, would you pay it into the bank account of a complete stranger? What’s to stop the stranger just walking off with the money?
  
  The chances are, the “company” or “millionaire” will use your curiosity to start to try and get money out of you, always with the promise of more money for you.
  
  
• Finally… if it sounds too good to be true, it probably is
  Any time you’re faced with a money-making proposition that sounds so fabulous you can’t believe it’s true, listen to your gut instinct. If someone is offering the possibility of making thousands in a week, the probability of it being a scam is almost as high as the revenue they are boasting.