5 Money Scams You Must Know to Avoid

Money ScamsEveryone likes to have some extra money if given the chance. Even though something seems a bit shady, you might be tempted to pursue it if there is a promise of a big sum of cash.

Here are a few of the more common scams that will leave you with less green instead of more:

• Cold calling
You might get a call out of the blue from a number that you don’t recognize. The caller weaves an exceptional tale of how he or she can multiply your money whether it’s in stocks, gold or other magical ways to make money. Don’t be fazed though the only magic trick is making your money disappear.

• Lotteries
This particular scam doesn’t actually involve a genuine lottery. You get contacted saying that you’ve won “the lottery” but to collect your winnings you need to pay a fee. Why would you need to pay something upfront to get money that you’ve won?

• An overseas email
An email from a Nigerian “prince” who says he has a great deal of money in a bank account and can’t access is a fairly common ploy. You’re promised a cut of the cash but only after you supply all of your bank information. Seems a little strange.

• Penny stocks
May be you’ve seen this on stock trading message boards. Stocks here or there that’s trading for cents and as long as enough people buy it to inflate the price to a dollar, everyone gets a huge payout. The price is actually already inflated and the scammers that put the message out cut and run when the price goes up, sending the stock crashing down lower than it was when you bought it.

• Breaking news stories
Whenever disaster hits, con artists are soon behind taking advantage of the charitable. You might get a call asking to donate for disaster relief or to fund clean-up efforts. Complete your homework before you donate to a seemingly good cause. Make sure it’s actually a legitimate relief organization and not someone making calls from his basement.

Robin Williams is an Executive at CashOne, a leading provider of online payday loans in the US. CashOne’s one hour payday loans means cash in your bank account within one hour, with low fees, fast approval, flexible payment options and no credit checks. Google +