scams and schemes
DESCRIPTION
2.02 – Understand Threats to Financial Security Gwishiri . Scams and Schemes . Types of Behaviors that Lead to Financial Losses. Failure to plan Not comparing job offers carefully in light of expected expenses Shopping without a list, which often leads to impulse buying - PowerPoint PPT PresentationTRANSCRIPT
SCAMS AND SCHEMES
2.02 – Understand Threats to Financial Security Gwishiri
TYPES OF BEHAVIORS THAT LEAD TO FINANCIAL LOSSES
Failure to plan Not comparing job
offers carefully in light of expected expenses
Shopping without a list, which often leads to impulse buying
Spending without using a spending plan, which often leads to overspending
Failure to protect Making personal
information available that can lead to identity theft
Not securing life, health, and property to minimize risks of crimes and emergencies
Not following Internet safety practices
TYPES OF BEHAVIORS THAT LEAD TO FINANCIAL LOSSES
FAILURE TO BE INFORMED FAILURE TO COMMUNICATE
Not reading the fine print in sales agreements, product labels, contracts
Not researching sales offers in depth before making a commitment
Not separating facts from opinions in considering advertisements
Not asking sufficient appropriate questions to inform financial decisions
Not discussing financial decisions with all parties/family members involved
Not taking enough time to make a careful decision because of sales pressure
Not saying “no” when needed
TYPES OF DECEITFUL/ FRAUDULENT SCAMS AND SCHEMES THAT LEAD TO FINANCIAL LOSS Lying---e.g., accepting money for a stated purpose,
then using it for a different purpose; selling a product or service that will not perform as promised
Concealing information---e.g., sellers not willing to state their physical addresses
Deals that are too good to be true---e.g., a PYRAMID SCHEME, An illegal scheme that influences people to contribute
money based on the false promise that they will get rich quickly; the pyramid collapses and money is lost, not gained
Chain letter---a variation of the pyramid scheme that involves postal correspondence, also illegal
SCAMS/SCHEMES CONTINUED… High-pressure sales approaches---e.g., claiming the offer is
only good for one day Vague offers---e.g., expecting you to pay up front in order to
receive full information about a product or service Sweepstakes letter---states that you have won a valuable
prize, but need to pay a processing fee to claim the prize Lotteries---prizes awarded by chance after purchase of ticket;
very small chance of winning Earn-money-at-home offers---on the condition that you
purchase software, etc.; once paid for, nothing arrives Winning bid in auctions---you pay the bid amount, but never
receive the item bought Identity theft---stealing one’s personal information
COMMUNICATING AND REPORTING DECEITFUL/FRAUDULENT SCAMS AND SCHEMES
Communicating with fellow consumers
Use available communication media---live conversation, telephone, texting, emails, etc.
Be specific, include key details
Reporting to government agencies and other consumer advocates
Go to the Federal Trade Commission (FTC) website; complete a Consumer Complaint Form
Call or visit the website of the National Fraud Information Center of the National Consumers League
Contact local consumer protection agency
Contact Better Business Bureau Contact State Attorney General’s
office Contact the post office if you
receive a fraudulent offer by mail Contact the local media