Red Flag #2: Limited Opportunity Sales
Scam and frauds often play on our innate sense of greed and vanity. Many frauds are designed to get you to feel like you are getting a great deal or are part of an exclusive “club.” By playing up the “one time only” or “limited time only” opportunity, scammers hope to force you into quickly making a decision to take advantage of the great deal without having time to do your research or think about the legitimacy of the opportunity. This tactic is often part of a high-pressure sales tactic and many telemarketers (both legitimate and illegitimate) and fraudulent investment brokers use this tactic to close the sale as quickly as possible.
Don’t let the “limited time” opportunity ever be your reason for spending money. Always take the time to comparison shop and do your research on the opportunity and person pitching it before spending your money.
Red Flag #3: Unsolicited Contact
In most circumstances the con artist will come to you first with the intent of pitching some type of opportunity to you or coaxing you in to divulging personal or financial information. Unsolicited contact may come in the form of a mailed letter, a fax, a phone call or voice message, an email, a link on a website or via an online social networking site.
Always be wary of situations in which someone is offering you an opportunity that you did not personally seek out yourself, whether by mail, fax, phone, email, or via online social networking.
Join me next week for Red Flag #4: Request for Personal Information