5 of the Latest Money Scams to be Aware Of

Every day, scammers are concocting new ways of trying to separate you from your money. It seems with every new security measure, a new way of getting around it is invented. Since nearly everyone is online these days, the vulnerability risk is high. Take a look at five of the latest money scams, and you’ll get a sense of how incredibly sneaky they can be.

1. Charitable Giving Scams

It’s a wonderful feeling to know that you’re helping out someone in need by anonymously donating money. Crowdfunding platforms like Go Fund Me are there so that people in crisis can get money to help them up on their feet again. With the prevalence of natural disasters and dire circumstances like homelessness, Go Fund Me and others like it have become very popular. Go Fund Me takes their mission seriously and works hard to prevent fraud. But sometimes one slips past them.

In 2017, a couple in the Northeast set up a Go Fund Me campaign for a homeless man whom they had decided to help. At least that’s what their Go Fund Me page said. They raised over $400,000, but the homeless man barely saw a cent of that money. Instead, the couple bought themselves luxury items. The matter went to court and the couple was recently sentenced. In a twist, the homeless man was also sentenced for his part in perpetuating the online scam.

2. Holiday Vacation Home Scams

With the holidays approaching, families are eagerly checking out vacation home rental sites to have an ideal holiday break. There are many such sites, such as Airbnb and VRBO, but there are also individual sites, and vacation rentals on Facebook Marketplace and Craigslist. 

Now, scammers are preparing for the holidays differently than you are. They’re setting up fake holiday home rental sites in idyllic locations to lure you in. You reach out to the owner via the contact information on the site. The owner seems very professional and is delighted to host you and your family. All you have to do is send in your deposit to hold the reservation. 

Most people are willing to do this, because we’re accustomed to putting down deposits on reservations. But this scam is particularly mean.

You and your family show up on the date, only to find out that either the property is actually a vacant lot or that someone lives there and has no idea what you’re talking about or who you are. This scam has happened to countless people, ruining their vacation and causing them to lose thousands of dollars, not to mention the pain and misery of having to find alternative accommodation at the last minute, sometimes late at night.

3. Payday Loan Scams

Payday loans in and of themselves could be considered a scam, because the interest rates are astronomical. You should avoid taking a payday loan at all costs. But sometimes people do, and sometimes they also fall prey to a payday loan scam like this scenario. 

The scam typically begins with the criminals advertising fake payday loans, which they claim will provide immediate financial relief and help applicants take control of their mounting bills. These offers are often presented in a convincing manner, with official-looking websites and persuasive marketing materials, making them appear legitimate to unsuspecting victims.

Once the person applies for the loan, they are informed that they must prepay a certain fee to secure the funds. This fee is often justified as a processing charge or an upfront payment to guarantee the loan's approval. The applicant, desperate for financial assistance, usually complies, believing that they’ll soon get the loan. However, once the fee is paid, the scammers vanish, and the promised loan never materializes. The money paid as a fee goes directly into the criminals' pockets, leaving the applicant with even more financial strain and no recourse to recover the lost funds.

4. Student Debt Forgiveness Scams

The future of the Biden administration's initiative to forgive student loans is currently uncertain. Despite this, scammers are taking the opportunity to exploit those who may be unaware that the plan is on hold. These scammers have created fake application websites with the intention of stealing personal information, such as Social Security numbers and banking details, from unsuspecting individuals.

In some cases, the criminals have even reached out to potential victims over the phone, applying pressure and persuading them to apply for the fraudulent loan forgiveness program. They often charge a fee for their so-called assistance, further victimizing those who are already burdened by debt.

5. Online Romance Scams

This money scam is particularly seedy, as it preys on lonely people, often older, who are looking for someone to love them. The scammer plays the long game, slowly reeling in their victim, so trust is built up over time. The initial contact could be from social media, or a dating site, or even from a sales phone call. The scammer often pretends to be smitten, or feigns similar interests as their target. They may even send photographs that make them look real, and that back up their “story.” Over time—it could even be a year—the scammer asks for money. Maybe it’s a request to help pay for a plane ticket so they can visit the target. Or money to get their vehicle fixed, or money for a medical need. But by the time they ask, chances are the target feels so connected to the scammer, thinking they are in a relationship, that they send the money. Then their heart and their bank accounts are broken.

Unfortunately, scammers are everywhere online. It’s essential to be vigilant, especially where personal data and finances are concerned. Strive to only do transactions with people you know, and avoid being too quick to respond to emails that request personal information. It also helps to mention any suspicious requests to your CPA, who is up-to-date with all the latest money scams today. They just may help prevent you from being a victim of a scammer.

 
- by Kate Supino -