Beware of Financial Scams

While saving for your debt settlement every penny counts. Make sure that you do not get sucked into some of the many financial scams on the web currently. Below are a few of the typical financial scams to be on the lookout for.

Mystery Shopper Scams

It's common for businesses and consulting firms to pay consumers to shop at their retail locations or dine at their restaurant. The mystery shoppers are then required to submit confidential reports about the experience. But fraudulent individuals are cashing in by setting up fake mystery-shopping programs that look very real, including job applications and professional-looking web sites. They are then convincing new hires to wire money using funds from their own checking account.

Here's a typical scenario according to FDIC Consumer News. Your first assignment as mystery shopper is to deposit a $2,000 cashier's check into your bank account, supposedly to cover a $1,900 purchase you're about to make for your new part-time job, plus a $100 advance payment for your services. You're then instructed to withdraw $1,900 in cash from your bank account, take it to a particular store to have the funds wired to a person in Canada. Later, you'll go home and fill out an evaluation of the store's money-transfer service. Eventually, the cashier's check you deposited will be returned as counterfeit, and you will be responsible for the money you withdrew from your account.

What Can You Do?

To learn more about common financial frauds and how to protect yourself, visit www.mymoney.gov, a site dedicated to financial education and sponsored by the FDIC.

Trust your instincts and be cautious before you commit to any work-at-home job that may seem too good to be true. If you want to work at home, determine what your strengths and interests are as with any other job search. Then, try to find ways that you may be able to earn extra money at home. For example, consider baby-sitting or pet sitting for families in your community. If you have computer or data-entry experience, consider using your home computer as an employment tool. Companies who ask for money in order to provide you with work should trigger a red flag.