Expert Recommendations to Avoid Scams

It seems like scams are everywhere these days and they affect people of all ages. Below are eight expert recommendations to avoid being a victim of fraud:

Get a Contract and Read It- Always have written contracts and review them carefully before signing them when engaging contractors or other service providers to perform work. Don’t leave any blank spaces and always keep a copy of any document that you are asked to sign.

 

Do Due Diligence- Get multiple in-person or online references for service providers (e.g., contractors, financial advisors, house cleaners, lawn care, plumbers) from family, friends, and/or co-workers and check them. Ask to see a vendor’s state license (where a state license is required) and proof of insurance (e.g., for contractors).

 

Don’t Pay Everything Up Front- Be very wary of any company that demands that most or all of the cost of a job be paid in advance. The party that has all the money has the upper hand and the other party has little recourse. A fully paid vendor could care less if you are satisfied with their  service or not. Instead, look for companies that charge a series of installment payments with the final payment due only after satisfactory completion of a product or service.

 

Beware of Personal Check Requests- Always make checks payable to a business name. Be wary if you are asked to make payments for business services to an individual. This is a “red flag” that the business owner may be untrustworthy and/or unlicensed.

 

Use Common Sense- Use the “smell test.” If an offer, deal, or discount does not “smell” right or sounds too good to be true, it probably is. Always employ common sense and a healthy amount of skepticism and walk away from or delete questionable purchases.

 

Beware of Testimonials- Ignore testimonials found in mailed advertisements, television infomercials, and online. The only testimonials that are worth believing are those that come from people that you know and trust.

 

Read Fine Print- A common phrase used by fraud prevention specialists is “the large print giveth and the small print taketh away.” Don’t rely on verbal sales pitches and “guarantees” made by salespeople. Read the fine print and, if you don’t understand it, find someone who does.

 

Beware of “Urgent” Offers- A common “red flag” of fraud is deals presented with language such as “limited time offer” and “you must act now.” Remember that the easiest way to steal people’s money, with the possible exception of at gunpoint, is to force them into a quick decision.

 

In summary, keep your BS meter running at all times and be alert to indications that something is amiss. Nobody will look after your finances better than you do.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.