Times of uncertainty pose as a perfect playground for financial scammers – and they seem to be coming out of the woodwork. Not only does the fact that everyone looking for the so-called perfect investment or financial opportunity-the one that is low-risk and will outrun inflation-say “come out and play” to these con artists; the headlines of the big financial firms have put a flashing welcome sign on their doors.

So what can you do to avoid these scheming villains? It’s really fairly simple: educate yourself on simple precautions you can take and know what to look for, and stay alert.

Is your phone ringing at night???
Americans lose nearly $40 billion a year due to telemarketing fraud.¹ This is not say ALL telemarketing calls are bogus; however, you should be wary of travel and free prize offers, charitable solicitations, loan offers, investments, etc. You’ve heard the old adage so stick to it, “If something sounds too good to be true, it usually is.” Do not give in to high-pressure sales. Make it a rule to never buy anything or give out your information right away:  tell the telemarketer you will call them back after doing a little research. By the way…this one step will usually suffice to get rid of any hucksters. Check out www.charitynavigator.org to investigate any charity that might call or request literature through the mail. As for investment and lending opportunities, be especially careful. Always do extent research. Use the FINRA’s BrokerCheck service at finra.com, contact your state securities regulator via nasaa.org, or visit fdic.gov and utilize the bank find tool. And insist that you want to meet in person.

Good to know: If you don’t want telemarketing calls at all, you have the option to sign up your home phone and cell phones with the National Do Not Call registry at www.donotcall.com.

Are Phishes and Vishes in your Inbox???
And no, these aren’t fishes and that isn’t a tackle box. Banks or other financial institutions will NEVER ask for your personal information via email. Never. Phishers and Vishers, though, will make you think twice. Phishing occurs when your local internet scam artist appears to be your bank and the message states that your account is compromised or you need to update, validate or confirm your account. You are then asked to click on a link within the email to provide certain information. Vishing is the same, except you are not asked to click, but to call a number to correct the problem. If what you read in an email from your “financial institution” doesn’t sit right with you, for any reason – get out your last statement and call the number listed on it (not the number on the email) to make your inquiry. If you are the victim of these types of emails, you can (and should) report the messages to the Federal Trade Commission by emailing to reportphishing@antiphishing.org.

Do you use an ATM?
If you do, look to see if there are any suspicious individuals nearby and check the machine to see if anything looks disassembled, broken or tampered with. Scam (scum) bags will insert a plastic sleeve into an ATM machine that takes your card after you have inserted it as well as your PIN number. If this happens, call your financial institutions immediately, let them know what occurred and cancel the card.

P.S. I suggest staying away from debit cards; they are notorious for being readily accessible to identity thieves. but if you must, always hit clear after every transaction.

Do you know what your credit report looks like?
Okay. I know you hear it all the time, but it is so important to know whether or not what is on your credit report is correct. One in four credit reports have an error that is serious enough that those individuals could not acquire a loan, open a bank account or even get a job.² You can obtain 1 credit report per year from each of the big 3-Experian, Equifax and TransUnion-free at www.annualcreditreport.com.

So are you getting my theory now? It is what you don’t know that you don’t know that could hurt you. Do your homework, use your head and go with your gut.

1. Alliance Against Fraud in Telemarketing-AAFT, 2008.
2. Public Interest Research Group, 2008.