Pandemic Financial Scams to Avoid {Dec 2020} Overview >> Financial scams were already a dime a dozen before the pandemic struck. Now, with so many more people facing uncertainty, consumers are more vulnerable to fraud than ever. These are some pandemic financial scams to avoid.
Pandemic Relief Money Scams
It’s no secret that the pandemic has caused lots of problems for individuals financially. With a huge influx of people losing their jobs, many are looking for money wherever they can find it. While there have been stimulus checks and unemployment benefits granted by governments around the world, many have been left with not enough to cover their needs.
It should come as no surprise then, scammers are trying to take advantage of this tough situation. Be careful of any emails or messages you get regarding pandemic relief money. If it sounds too good to be true, it probably is. Even if you’re expecting to receive funds, double-check you’re communicating with a reliable party, not just someone pretending to be one.
All Kinds of Phishing Attacks
Phishing has been around for a while, but remains one of the most effective methods for stealing sensitive information through computers. Phishing works so well because it takes advantage of people’s psychology. In essence, it’s when someone pretends to be an associate or trusted source, but is actually a criminal in disguise.
Most phishing attacks come through email, as it’s a direct, easy way to deliver harmful links. Be very careful if you receive an unexpected email from a friend, family member, or coworker. It could be a phishing email designed to get you to click on a harmful link that will install malware on your device.
Debt Consolidation Scams
Debt consolidation companies can provide a legitimate service to people who are struggling with their finances. There are, however, many players in this world who don’t have the consumer’s best interests at heart.
Even before the pandemic, lots of people out there were trying to trick people with seemingly real debt consolidation services. This has only become more prevalent as the financial strains associated with Coronavirus have sent many into desperation mode. It’s important to research online debt consolidation companies before you sign up for services. Doing so can save you a lot of trouble, as there are several ways dealing with an illegitimate consolidation service can hurt you.
Here are some red flags to look for when communicating with a debt consolidation service:
- A promise you’ll beat your debt. No one can guarantee success with any kind of debt solution. This is a pretty clear indication something is off with the company.
- No straight answers to your questions. It’s natural to want to know specifics before signing up for a financial program. It’s a bad sign if a debt relief agency isn’t giving you all the information.
- Lots of negative feedback online. Beware of any organization that has overwhelming bad reviews. You should also think twice before using a program with very few reviews, as that might be a sign that it’s not legitimate.
Investment Scams
Lots of people dream about getting rich through lucrative investments. Few people, however, are actually able to do this. A combination of stimulus checks and free time during the pandemic have made more people than ever interested in investing. While this is great, it also opens the door for scammers.
There are scammers who will try to convince you to buy a worthless stock to drive up the price, only to sell once they’ve made a profit and you’re left holding the bag. These are known as “pump and dump” schemes. There have been plenty of opportunities for this in biopharma stocks during the pandemic, as these are often volatile to begin with, and the average person knows little about pharmaceutical products.
There are always going to be people out there trying to scam you. While it’s impossible to protect yourself from everything, being vigilant can go a long way in ensuring your financial safety.