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Copyright 2015 Š by HighYa, LLC All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review. HighYa, LLC 2620 Bellevue Way NE, #135, Bellevue, WA 98004 www.highya.com Cover & Layout Design by Dmitry Ozik
145 Scam Hacks: Essential Tips for Avoiding Popular Scams A note from the authors: Hey you! Scammers love their victims to be uninformed. Want to do something about it? At HighYa, we’ve written extensively about all types of scams, from anti-aging and “As Seen on TV” products, to scams targeting students and seniors. What have we learned? The best way to fight back is by arming yourself with as much information as possible. In other words, by learning exactly what to look for, you’ll be able to identify scams with ease and avoid them altogether. And that’s exactly what this book is: An easy-to-read guide that can help you avoid many of the most popular scams. So read up, fill your beautiful brain with information, and help make a scammer’s job as difficult as possible. –Dmitry, Vlad & Derek
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Acknowledgment To Our Readers: A Heartfelt “Thank You” Before we dig, it’s important that we express our deepest gratitude to all the readers who have contributed to HighYa’s more than 17,000 reviews. Because of your feedback, comments, and emails, we’re able to provide millions of consumers with practical advice and the information they need to shop smarter. In other words, think of this as a virtual hug. :) In all seriousness though, here’s a warm, heartfelt “thank you” from all of us here at HighYa. You’re the engine that keeps the information flowing! To your scam-free success, The HighYa Team
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Table of Contents: Anti-Aging Products Scams................................................................................................................ 6 “As Seen on TV” Products & Infomercials Scams............................................................................11 Scholarships & Financial Aid Scams................................................................................................15 Distance Education Scams............................................................................................................... 19 School Fundraising Scams............................................................................................................... 21 Employment Scams..........................................................................................................................23 Online Identity Theft Scams..............................................................................................................25 Real-World Identity Theft Scams......................................................................................................28 Online Dating Scams......................................................................................................................... 31 Facebook & Social Media Scams......................................................................................................34 Auto Insurance Scams...................................................................................................................... 37 Homeowner’s Insurance Scams......................................................................................................40 Medical/Health Care Insurance Scams............................................................................................43 Nutritional Supplements Scams...................................................................................................... 46 Online Shopping Scams....................................................................................................................50 Online Investment “Opportunities” Scams.......................................................................................55 Fake Websites Scams.......................................................................................................................58 Summer Scams................................................................................................................................. 61 Tax Season Scams.............................................................................................................................64 What To Do if You’ve Been Scammed............................................................................................... 67 Conclusion......................................................................................................................................... 69
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ANTI-AGING PRODUCTS SCAMS
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Anti-Aging Products Scams Want to turn back the hands of time and look years younger? While there are certainly thousands of legitimate anti-aging products from reputable manufacturers out there, it seems like just as many are looking to take your money and run, while leaving you nothing to show for it. Here’s what to look for: Hack #1 Beware of companies that claim their products are made from a “secret” or “ancient” formula. Hack #2 Also, watch out for sales pitches that claim the “answer” to turning back the clock was staring them in the face the whole time, and was so simple that everyone else just overlooked it. Often, this accompanies the claim that the “establishment” is conspiring against them to suppress the “breakthrough” they’ve achieved. Hack #3 Stay alert for sales pitches that involve a whole lot of hype and “filler” and provide littleto-no information about how the product actually works. Hack #4 Avoid products without medical or scientific evidence to support their claims. If there is some scientific study related to their product or the ingredients it contains, manufacturers might over-hype the findings, or in some instances might outright lie about them.
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Hack #5 Thoroughly research any anti-aging product you’re thinking about buying here on HighYa, as well as on other consumer advocacy websites. Find out all the “hype-free” information you can, and pay close attention to direct feedback from consumers who’ve used it. Hack #6 Remember, not all money-back guarantees are created equally. Use the previous tip to learn about other customers’ experiences when trying to obtain a refund for the product. Was customer service helpful, or did they make the process as difficult as possible? Hack #7 Don’t make any immediate decisions about purchasing an anti-aging product after visiting their website. Remember, many of these companies are masters at using psychology to convince you to buy.[1] Instead, discuss all of your options with your physician first. Hack #8 Look for a product label. If you can’t find one, we might recommend staying away. Hack #9 Avoid products sold through free trials or ones that enroll you in autoship/membership programs. Hack #10 Just because a cosmetic advertises that it’s GMP-certified, keep in mind that this designation ultimately doesn’t hold a lot of weight in regards to anti-aging products. Hack #11 Just because an anti-aging product comes with a high price[2] doesn’t mean that it will www.highya.com
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work any better than a regular moisturizer—if at all. Still thinking about splurging? Be sure to research the product’s ingredients[3] to find out 1) if they’re effective and 2) if they justify the steep price. Hack #12 Is the product endorsed by a physician? If it is, this doesn’t necessarily mean that it’s effective, worth your money, or even safe. Instead of taking a TV physician’s advice, the best person to speak with before trying any new anti-aging product is your dermatologist. Hack #13 Or, does your favorite celebrity[4] endorse the product? Remember that they’re basically just paid to be “talking heads,” and their endorsement doesn’t mean they enjoy the product (or that they’ve even used it). Hack #14 Do you find claims like, “Better than Botox,” “An injection-free solution for younger looking skin,” or “Amazing new Hollywood secret?” If so, run away quickly. Products like these reuse the same website template[5] over and over—once customers figure out what’s going on, they relaunch the same product under a different name, only to scam more unsuspecting consumers. Hack #15 Already caught in a web of deceit from a less-than-stellar anti-aging company? If so, getting your credit card company involved[6] might be the easiest method of finding a resolution. Just be sure to document everything![7] Hack #16 Does the company claim that their product has appeared on major networks like CNBC, CNN, FOX, and more? Anti-aging manufacturers are notorious for making it seem like their products have created a lot of media buzz, which is rarely the case. The easiest www.highya.com
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way to find out if this is true is by typing “[Product Name + Network or Publication Name]” into your favorite search engine. Don’t see anything? Then these claims might be fake.
Resources: 1. How Psychology Can Help Control Your Emotions & Avoid Scams 2. How Brands Trick You Into Buying High Priced Anti-Aging Products 3. The Big Skin Cream Con 4. Why Celebrity Endorsements Can Hurt You & How You Can Resist Them 5. Consumer Alert: Avoid These Anti-Aging Websites Like the Plague 6. Dealing with Unethical Customer Service? Get Your Credit Card Company Involved 7. Your Complete Guide on Disputing Credit Card Charges
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“AS SEEN ON TV” PRODUCTS & INFOMERCIAL SCAMS
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“As Seen on TV” Products & Infomercials Scams “But wait, there’s more!” Most of us are so familiar with the phrases commonly used to sell “As Seen on TV” products that we can immediately recognize them, even if we’re not actually watching the commercial. But you may not be as familiar with some of these companies’ sales tactics, which can reduce your bank account and leave you feeling scammed. To help you avoid this, keep the following in mind: Hack #17 Remember that if you decide to call and place an order, you’ll almost certainly be upsold several times throughout the process. Most manufacturers will also sell your contact information to third-party companies, who will then email and/or call you to upsell additional products.[1] Hack #18 If you find an “As Seen on TV” product that you simply must have, try calling the number on your screen and speaking with a customer service representative to get a general idea of their helpfulness. But keep your guard up, because (as mentioned before) you will be aggressively upsold throughout the call. Hack #19 Understand what you’re purchasing. Infomercials are designed[2] to make products look their absolute best. As such, it’s highly likely that once you receive it, it may not look as good as it did on TV, and that it very likely won’t perform as well as advertised. Hack #20
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Keep in mind that many products sold through infomercials come with steep shipping and handling charges, which are almost never refundable. When you add the amount you’ll have to pay to ship the product back to the company if you’re dissatisfied, you might find that you’ve paid more in shipping and handling charges than you’ll ultimately receive as a refund.[3] Hack #21 Put on your thinking cap. If a product claims to give you greener grass while making your hair regrow and giving you six-pack abs, then you can bank on it not performing as well as it claims. As trite as it may seem, the phrase “too good to be true” is a good starting point when deciding whether or not to purchase a product sold through an infomercial. Hack #22 Do your research. HighYa exists solely to make you a more informed consumer, so if there’s a product you’re thinking about purchasing, resist the temptation to order it this very moment. Instead, take a few minutes, search online for customer reviews and find out what other customers have to say about it first. Even though new “As Seen on TV” products are popping up every day, if one is popular, online reviews will often appear quickly. This way you can gauge other customers’ experiences before placing your order. After all, despite how it may seem, there are still reputable companies out there who make good “As Seen on TV” products. Hack #23 When purchasing an “As Seen on TV” product, always read the fine print, which is usually located just below the checkout area, and is often in a very small font. This is where you’ll find out information about the autoship program, as well as whether or not you can opt out of it. Hack #24 Before finalizing your order, be sure to carefully review your shopping cart. This is www.highya.com
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because some manufacturers will automatically place “upsell” items into your cart that must be manually removed. Also, keep in mind that a “Buy 1, Get 1 Free” offer usually counts as one item in your shopping cart. In other words, if you want to purchase the “Buy 1, Get 1 Free” offer, you might think that you need to place 2 items in your shopping cart. However, if you did this, it means that you’d receive two “Buy 1, Get 1 Free” offers, for a total of 4 items. And as we’ve mentioned, returning an item means that you’ll lose even more money on S&H charges, so you might just end up with extra product that you’ll never use. Hack #25 Only enter your credit card information on the product’s website once you’re 100% ready to buy. This is because some websites are set up to capture your credit card information and process the charge without you ever pressing the Order button.[4] Hack #26 Look for the product in stores first. The ultimate goal for any infomercial product is to go retail, so there’s very real possibility that any product you’re thinking about purchasing will soon be available at your local Walmart, Target, Bed Bath & Beyond, etc. As such, if you can be patient, you may be able to avoid return hassles, poor customer service, and numerous upsells in the first place.
Resources: 1. Secrets that the “As Seen On TV” Industry Doesn’t Want You to Know About 2. Selling Hope: How Infomercials Convince You to Buy & What You Can Do to Avoid Becoming a Victim 3. Beware: Not Following These 6 Tips Could Cost You Money on Your Next “As Seen on TV” Purchase 4. How to Avoid this New Credit Card Scam Using 2 Easy Tips
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SCHOLARSHIPS & FINANCIAL AID SCAMS
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Scholarships & Financial Aid Scams The cost of a college education continues to go up year after year, which means that an increasing number of us are looking for different ways to pay. Scammers will use your urgency for free money to drain your bank account and steal your personal information, and provide little-to-nothing in return. Instead, use the following tips to avoid scams and obtain the money you need for school: Hack #27 Remember that no legitimate scholarships or grants will require any kind of advance or processing fee, and no one can improve your chances of obtaining a scholarship or a grant by paying them money.[1] Hack #28 As such, be wary of anyone who claims that they can help you find “secret” scholarships for a small weekly or monthly fee, for which they’ll claim to offer some type of money back guarantee. Hack #29 If you receive an email or a call from someone claiming that you’ve been awarded grants but you haven’t applied for any, this is a sure sign of a scam. Hack #30 Watch out for companies that claim to need your checking account information in order to “verify eligibility” related to admissions or financial aid.
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Hack #31 Hang up immediately if you receive a call from someone claiming that you’ve been selected as a finalist for a scholarship, and a deposit is required to “hold your position.” Hack #32 Be on guard when receiving any kind of unsolicited offers, whether this is by phone or email. Hack #33 Avoid individuals who request any kind of application fee beyond postage and handling charges. Hack #34 Like many other types of scams, scholarship scammers will attempt to appear as legitimate and reputable as possible. This could include a professionally designed envelope or seal, legit-looking signatures, and an authentic sounding name. Hack #35 Just because you’d consider it a “scam” doesn’t necessarily mean that the company will take your money and run. In some instances, they might send you a pre-printed list of all available scholarships. So, technically they’re giving you something for your money, although you could find most of the same information online for free. Hack #36 Alternately, you might find yourself enrolled in some kind of monthly subscription program, without the ability to speak with someone or opt out of the recurring charges. Hack #37 Instead, to find what you need without having to pay a dime, try an online scholarship search engine, check with local organizations (such as the Rotary Club or your school’s guidance office), or speak to the college directly about scholarship opportunities. www.highya.com
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Resources: 1. The Money Hunt: Ins & Outs of Scholarship Scams
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DISTANCE EDUCATION SCAMS
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Distance Education Scams Understand the importance of a college education, but can’t attend a traditional university? Online colleges represent a unique opportunity to obtain your degree, while still attending to all of life’s demands. But the distance education industry also contains plenty of scams, which we can help you avoid by following these simple tips: Hack #38 Avoid attending schools where tuition is charged per-degree, or where degrees are awarded based on “life experience.” Hack #39 Watch out for distance education schools where diplomas are guaranteed with payment, and which can often be obtained in extremely short periods of time (e.g. one month or less). Also, be alert if entrance is not based on GPA, academic records, or standardized testing. Hack #40 Avoid non-accredited schools, and/or schools not recognized by the Council on Higher Education Accreditation. Hack #41 Did you find that no faculty members were listed on the school’s website? And if there were, all of them obtained their degrees or credentials from the school? This could be a sign of a scam.
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SCHOOL FUNDRAISING SCAMS
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School Fundraising Scams Whether public or private, many schools rely on fundraising campaigns to acquire the money they need for education and to provide a variety of beneficial programs. Unfortunately, crooks will take advantage of this need to scam you out of your hardearned money. Looking to avoid these types of scams? Here are some actionable tips you can immediately put to use: Hack #42 Avoid high-pressure sales tactics or making a rash decision. Scammers will often make you feel like you have to hand over money this very instant. Instead, ask if these individuals have any materials related to their cause (e.g. flyers, information sheets, etc.). Regardless of their answer, tell them you’d like to think about it and ask how else you can donate (e.g. online, mailing in a check, dropping the money off at the school, etc.). Hack #43 Ask questions. If you’re familiar with the school these individuals claim to represent, ask them some specific questions such as: “How’s Principal [name] doing?” or, “What do you think about this year’s curriculum?” If you know these answers to these questions you can quickly find out whether or not they actually represent the school. Even if you don’t know the answers to these questions, it can often throw off would-be scammers.
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EMPLOYMENT SCAMS
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Employment Scams Sure, the internet has made it easier than ever to find and apply for jobs, regardless of the industry. But the internet also makes it easy for scammers to steal your money (or your personal information) while you’re on the hunt. But the good news is that the following tips can help you land the perfect job, while also avoiding employment-related scams: Hack #44 Keep in mind that if you found a potential job through online job boards such as Monster. com or Indeed.com, the chances that it’s a scam are much lower than if you found them on Craigslist or through an unsolicited email. Hack #45 If you’re being contacted by a company about an open position without first posting your resume on an online job board, it’s probably a scam. Even if you did post your resume on one of these sites, proceed with caution and do some thorough research on the company before giving out any of your personal information. Hack #46 As with most things in life, if a potential job sounds too good to be true or things just don’t add up, it’s best to stay away.
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ONLINE IDENTITY THEFT SCAMS
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Online Identity Theft Scams Identity fraud is one of the most common reasons scammers do what they do. After all, they can use your information to open fraudulent credit card accounts, take out loans, and even assume your identity. Here, we’ll help you avoid some of the most common online tactics used to perpetrate ID fraud—not to mention all the hassle involved should you fall victim: Hack #47 First and foremost, download and install antivirus software that includes a firewall. Keep in mind that most of the major internet providers such as Comcast, Cox, Charter, AT&T, Verizon, etc. provide free licenses for anti-virus software from reputable companies like Norton and McAfee for as long as you’re a customer. This way, you can get all the protection without having to spend any more of your hard-earned money. Hack #48 Never open emails from people you don’t know. And if it appears to be from someone you do know (or a company that you regularly do business with, such as your bank), be wary if you weren’t expecting it. Hack #49 Unless you’re expecting an email from someone you do know, never open any attachments or download any files. This is because people looking to steal your identity[1] will often attempt to install spyware on your computer, which will give them access to much of your personal information. Hack #50
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After clicking on a link contained in an email, it’s always a good idea to avoid entering your personal information (including account usernames and passwords, which should be changed often). Otherwise, you may fall victim to a phishing scam, which is where fraudsters will mimic legitimate websites (e.g. your bank) in order to steal your information. Hack #51 In addition, you might receive emails from would-be scammers that reference something related to back to school, such as “You’ve won $500 in free school supplies,” or, “Click here to buy an iPad for $100!” If so, don’t open them, and never download any attachments they contain, which could be disguised as a virus. Hack #52 Be sure to look for your full name at the top of any emails you receive. Only see something like “Dear Account Holder?” Banks will always include your full name and some kind of account identification, such as the last 4 digits of your account number. Hack #53 Did you receive an online survey request, where you’ll get something free in exchange for a few minutes of your time?[2] Scammers might be trying to steal your personal information, such as address, phone number, bank account details, and more. Hack #54 Think you’re opening an email from your bank or other financial institution? Remember that identity thieves are masters at mimicking legitimate businesses in order to trick and confuse you.
Resources: 1. The Plague of Identity Theft & How You Can Immunize Yourself 2. Consumer Alert: The New Online Survey Scam to Avoid
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REAL-WORLD IDENTITY THEFT SCAMS
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Real-World Identity Theft Scams Despite how it may seem, identity fraud isn’t an online-only problem. In fact, most scammers obtain your information from non-online methods, like phone scams, rifling through your trash, and more. Here, we’ll show you how to identify real-world ID fraud tactics before they claim you as a victim: Hack #55 Be careful who you give your social security number to. This includes filling out paperwork at the doctor’s office, car dealership, and even public schools. If you’re unsure, specifically ask what your social security number will be used for and how it will be stored in their system. In addition, if you’re filling out an online application, make absolutely sure the connection is secure (usually indicated by a simplistic lock image in the upper left-hand corner of your browser). Hack #56 “Dumpster diving” is the most-used—and most effective—way of obtaining someone’s personal information. As such, you should purchase an inexpensive shredder that you can use to destroy any personal, medical, or financial-related paperwork before throwing it in the trash, including checks, pre-approved credit card applications, and bills. Hack #57 Another related method of stealing your information is through skimming, which is where criminals attach small devices to credit card terminals that store your card numbers after you swipe. If you need to make several small purchases at different
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retailers, consider paying with cash. Hack #58 Obtain a free credit report from each of the 3 bureaus. You can obtain these by contacting each bureau independently (Experian, Equifax, and Transunion), or by visiting AnnualCreditReport.com. Since you’re eligible for one free credit report per year, the back to school time can act as a good reminder to reorder. If necessary, you can even sign up for a fee-based credit monitoring service that, among other things, will contact you if it appears your identity has been compromised. Hack #59 Keep in mind that there are also several third-party companies that can monitor your identity on your behalf, and alert you any time there appears to be a breach. While these companies will charge a fee for their services, they can often be invaluable tools, especially by providing you with a “one stop ID theft protection shop” and saving you time. Hack #60 Be careful when using public Wi-Fi, since scammers can use a variety of methods— including sniffing, Address Resolution Protocol (ARP), phishing, and peer-to-peer networks—to steal your information.[1]
Resources: 1. Wi-Fi Tips for Smarter Travel
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ONLINE DATING SCAMS
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Online Dating Scams Remember the old song “Lookin’ for Love” (in all the wrong places) by Johnny Lee? Although the internet has allowed tens of thousands of love seekers to find one another, it also gives scammers a perfect opportunity to defraud you out of your hard-earned money—and perhaps break your heart in the process. But instead of giving up, you can learn to identify these scams and stop them in their tracks by following these easy tips: Hack #61 Opening yourself up to finding love makes you vulnerable, and it’s this vulnerability that scammers will prey upon to separate you from your hard-earned money or steal your personal information. Hack #62 While there are hundreds of laws meant to protect US-based love-seekers from scammers, many of these laws don’t exist in other countries. In fact, in many West African countries (such as Nigeria and Ghana), these teams of fraudsters often have the support of their local community. Hack #63 Because many of these scams originate in non-English speaking countries, any emails you receive might be filled with spelling and grammatical errors. Hack #64 Online scammers especially target seniors.[1] Why? Because they’re often financially
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secure, but they might not be as “scam savvy” as younger online users and might be more willing to take a greater risk to find love. To avoid this, if you’ve received a message from a dating site user and find out they’re much younger, proceed with caution. Hack #65 Is your online relationship progressing a little too quickly? Have they already told you they love you? Are they constantly sending you long poems, or even flowers? If it’s only been a couple weeks and you still haven’t met in person, this could be a sign of a scam in progress. Hack #66 You might be in the midst of a scam if this person is always making excuses as to why they can’t meet. Or, if you do make plans to meet in person, they’ consistently break them at the last minute. Do they always respond to your emails in minutes, but claim that they’re always traveling? Does all of this add up in your mind?[2] Hack #67 However they approach you or whatever they say to convince you of their undying love, it’s inevitable that an online dating scammer will eventually ask you for money. If this occurs, think with your head, not your heart. Hack #68 Based on hundreds of reader reviews, it appears that dating websites catering to specific interests (e.g. the love of travel, rural dwellers, etc.) tend to have a higher percentage of scammers than more well-established sites like Match.com, eHarmony. com, and others.
Resources: 1. The Top 4 Internet Scams Targeting Seniors 2. Watch Out for These 6 Red Flags When Dating Online www.highya.com
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FACEBOOK & SOCIAL MEDIA SCAMS
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Facebook & Social Media Scams You surely “like” the fact that social media gives you the opportunity to keep up with friends and family all over the world, and to connect with others you might not have seen in years. On the other hand, you certainly don’t appreciate all the scams floating around social media these days. But how to avoid them? Here, we’ll lay out some commonsense tips you can immediately put to use: Hack #69 See an advertisement for a free high-priced item (such as an iPad or other popular electronics)? These account for 16.5% of all Facebook scams, so be sure to think before you click. Better yet, don’t click on these ads at all! Hack #70 It can be tempting to click on a video that promises to reveal shocking, scandalous, or racy content. But after clicking, if you’re prompted to download anything (such as updating your video player or making “new and improved changes” to your account), this will often download a virus or other types of malware. You might even be giving scammers direct access to your account! Hack #71 Alternately, Facebook scammers might try to convince you to hand over your log in credentials so that they can post comments on your behalf. Or, they might have you insert some malicious code into your browser’s Javascript console. This is what’s known as a Self-XSS Scam.[1]
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Hack #72 Want to see who’s looking at your Facebook profile? 30% of all Facebook scams involve this tactic, which will ultimately download some unsavory software to your computer. Remember: Facebook doesn’t share information about who’s visited your page with developers, so there’s no way they can know this information—even if you gave them access to your account.[2] Hack #73 Scammers will often send fake messages or emails indicating that you’ve violated one Facebook policy or another, and that you’ll have to click on a link to rectify the situation. Instead of clicking on these links, attempt to contact Facebook’s support staff directly. Otherwise, you could be handing over your login credentials to scammers. Hack #74 If you receive a message claiming to provide you with free Facebook credits for games, or that you’ve won a prize, make sure you don’t hand over your personal information or share any requested posts. Hack #75 To help you avoid these types of scams, avoid clicking on unknown links (even if they appear legitimate), keep your anti-virus programs up to date, adjust your privacy settings to specify who can view your information, and limit the information you post on your profile.
Resources: 1. Self-XSS Scam 2. The 10 Biggest Facebook Scams & How To Avoid Them
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AUTO INSURANCE SCAMS
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Auto Insurance Scams Auto insurance is a requirement for drivers in all 50 states, and is intended to provide protection in the event of an accident. But what happens when scammers use this requirement to purposely cause accidents and endanger you and your loved ones? Instead of putting you and your family in harm’s way, these useful tips can help you avoid crooks and put you safely back on the road: Hack #76 Always practice safe driving skills and leave plenty of room between you and the vehicle in front of you. Otherwise, you’ll be making it easier for scammers to cause a fraudulent accident. Hack #77 As soon as you’re involved in an accident, immediately contact the police, whose report will act as another form of documentation outlining exactly what occurred. Hack #78 Do not admit fault. Instead, contact your insurance company. Based on the information you provide, they will be the ones who ultimately determine fault. Hack #79 Always keep your insurance card to yourself, and only hand it over when exchanging information with other drivers involved in the accident. Hack #80 Always carry a disposable camera in your glove compartment (a smartphone with a
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built-in camera will work just as well, if not better). Take pictures of the damage, the people involved, and any surrounding road signs and scenery. Also, ask for names, telephone numbers, and driver’s license information for all those involved, as well as those of any witnesses. Hack #81 Be wary of strangers who offer you a quick cash payment or urge you to see a specific medical clinic, doctor, or attorney, or even those who recommend a specific towing company or auto body shop. They could be part of a fraud ring, which is a group of individuals whose express purpose is to use your auto accident as a means of stealing your (or your insurance company’s) money.[1] Although no formal statistics are available regarding the association between fraud rings and auto accidents, InsuranceFraud.org claims that “fraud and “buildup” added $4.8 billion to $6.8 billion in excess payments for auto injury claims in 2007. That represents between a 13 percent and 18 percent increase since 2002. Hack #82 Unless you already have a working relationship with an auto body shop in your area, it may be best to use one recommended by your insurance company. Regardless of who you use though, make sure you receive written estimates before any work begins, as well as an itemized list of all work the body shop completes.
Resources: 1. How to Avoid Insurance Fraud
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HOMEOWNER’S INSURANCE SCAMS
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Homeowner’s Insurance Scams Like auto insurance, homeowner’s insurance can help make you whole again after your house is damaged, while preventing you from experiencing financial ruin. On the other hand, savvy scammers know how to “rig” the system so that your homeowner’s insurance pays for shoddy repairs you probably didn’t need in the first place. However, you can avoid these scammers by following these tried-and-true tips: Hack #83 The most common type of homeowner’s insurance scam involves “storm chasers,” who travel the country visiting areas recently struck by strong storms and other natural disasters. They’ll then canvass an area going door-to-door and convince homeowners to perform repair work on their property. However, if they do the work at all, it will often be sub-par, and before you know it they’ve taken your insurance check and left town, leaving you with more repairs than when you began. As such, if anyone approaches you about performing repair work on your home, especially after a major storm: Hack #84 Avoid discussing any methods that might help you avoid paying your homeowner’s insurance deductible. This is illegal. Hack #85 Ask to see the individual’s driver’s license and the license plate on their vehicles. If you see that they’re out of state, ask them for recent, local references.
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Hack #86 Ask for a business license and a valid certificate of insurance. Hack #87 Ask for a copy of their business card, and look them up online using consumer organizations such as the Better Business Bureau.
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MEDICAL & HEALTH CARE INSURANCE SCAMS
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Medical & Health Care Insurance Scams Unexpected illness? Old sports injury flaring up? Whatever it is, the medical system— along with your health insurance—is intended to make you well again without paying an arm and a leg in the process. What happens when someone tries to use your health insurance to scam you? If you’re familiar with these solid tips, you’ll be armed with everything you need to know to avoid falling victim: Hack #88 Always keep your medical insurance card hidden from prying eyes, unless you’re absolutely sure it needs to be handed over. Hack #89 Ask your insurance carrier which services are covered and which physicians you can visit (often known as “in-network”). Hack #90 Avoid visiting physicians who advertise “free” tests or other services, but require a copy of your insurance card in order to be eligible. Hack #91 Be sure to ask questions about any services your physician orders, such as: Why are they needed? How much do they cost? Then, only agree to the services you feel you legitimately need.
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Hack #92 Avoid purchasing your prescriptions from online pharmacies, especially those located outside the US. Hack #93 Avoid logging into your insurance company’s website after clicking on a link contained in an email. Instead, visit the company’s site directly and then proceed to log in from there.
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NUTRITIONAL SUPPLEMENTS SCAMS
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Nutritional Supplements Scams Whether you’re looking to lose weight, detoxify your body, boost your testosterone, or just about anything else, there’s surely a nutritional supplement that claims to fit the bill. In many instances though, nutritional supplements don’t live up to the manufacturer’s claims, not to mention their extraordinarily high prices and sneaky subscription programs. Instead of being deceived, we’ll show you how to take control of the situation: Hack #94 Avoid autoship programs[1] and free trials.[2] Hack #95 Nutritional supplements websites often include technical jargon, pseudoscientific “evidence,” and even fake celebrity endorsements as part of their marketing strategy, so it’s important that you critically examine any claims they make. Hack #96 If you read that a supplement is clinically proven, does the manufacturer provide a link to, or excerpts from, any clinical studies? If so, has the study been reviewed by recognized scientific experts and published in reputable, peer-reviewed scientific journals?[3] Hack #97 Nutritional supplements manufacturers will often draw a conclusion based on a single limited study. However, keep in mind that sound health advice should be based on a
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relatively large body of evidence, not on one “breakthrough” finding. Hack #98 Make sure there is a product label and/or a full list of ingredients for the supplement. Hack #99 Verify if the company is Good Manufacturing Process (GMP) certified.[4] Also, make sure their supplement is made in the US and processed in an FDA-approved facility. Hack #100 Find out how long the nutritional supplement has been on the market. The longer the better. Hack #101 Verify if the company submits their supplement for third party monitoring and testing. This is because supplements manufacturers have a notorious reputation for dosing levels that are inaccurate or purposely misrepresented. Hack #102 Quality supplement manufacturers who operate legitimate businesses actually care about what their customers think, because they know they’re the lifeblood of their business. As such, before placing your order, find out if the company stands behind their product with a 100% money back guarantee. Hack #103 Never enter your credit card information on the product’s ordering screen until you’re absolutely sure you’re ready to place an order. Hack #104 Learn the ins and outs of how to identify affiliate marketing scams.[5] Otherwise, you could be sucked in by the big claims and high-pressure marketing tactics that some www.highya.com
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affiliate marketers use, which could leave you with a lighter wallet and a product that doesn’t live up to expectations. Hack #105 If you’re unsure about a supplement (and even if you’re not), be sure to speak with your physician beforehand. Hack #106 Thinking about trying a hair supplement? Recognize that many of these products come from manufacturers with less-than-stellar reputations, and that you can often purchase all of their ingredients individually for less than the supplement itself[6]. Also, as we mentioned above, many of these are only available through “free” trials and autoship programs, which should generally be avoided.
Resources: 1. What is An Autoship Program, & Why Should You Avoid It? 2. Think That Free Trial is a Good Idea? Why You Might Be Gambling with Your Money 3. Think that Clinical Study is Legit? 4 Steps for Identifying Fake Science 4. Good manufacturing practice (Wikipedia) 5. How to Identify Affiliate Marketing Scams When Purchasing Your Next Nutritional Supplement 6. Your Complete Guide on How to Buy a Nutritional Supplement
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ONLINE SHOPPING SCAMS
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Online Shopping Scams Do you remember a time when shopping while sitting on your couch in jammies was nothing but a dream? Today, for millions of us, online shopping is a regular part of our lives. And while this certainly offers an unprecedented level of convenience, the internet is rife with online shopping scams intended to steal your money or your information (or both). So don’t click that Order button until you’ve read all these actionable tips: Hack #107 Always make sure that your computer’s anti-virus software is up to date and that you’re running a firewall. Hack #108 When making a purchase online, always make sure that your internet connection is secure. In order to accomplish this, simply look for the “lock” icon in the upper left-hand corner of your internet browser. Also, look for a URL that begins with “https.” If you have any reservations about a site, close it immediately and never provide any of your personal information. Hack #109 Avoid clicking on pop-up advertisements. These will often lead you to a “less-thanreputable” website, or could even install a virus onto your computer. Hack #110 Don’t open emails from someone you don’t know. If you do, make sure you don’t click on any links it contains or download any attachments.
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Hack #111 If you receive an email from someone asking for your personal information (e.g. your bank, insurance provider, etc.), it’s always a good idea to delete the email and then log in to the company’s website directly. Hack #112 Be sure to thoroughly research any anti-aging or “As Seen on TV” products you’re thinking about purchasing here on HighYa, as well as other online customer review websites. This way, you can gain a better understanding of what other customers have experienced and take into consideration any difficulties they’ve had. Also, if you’ve seen an anti-aging product endorsed by your favorite celebrity, don’t be swayed into making a decision based on this alone, as they may end up being fake.[1] Hack #113 Don’t give out your information on a site that entails a confusing checkout process. This includes: Not displaying an order total on the checkout page, offering you numerous “upgrade” options, making it difficult to discern which options you should choose, and/ or artificially increasing the number of items you purchase and hoping that you won’t notice. Hack #114 When contacting customer service, watch out for sneaky additional charges that you didn’t expressly agree to. This is often accompanied by hard-selling techniques such as not taking “no” for an answer, constantly talking over you, and making you feel ashamed for not accepting the offer(s).[2] Hack #115 Imagine that you enter your credit card information on a product’s website, but never actually press the “order” button. However, the company processes the charge anyway and ships you their product. You’d certainly be mad, right? Of course you would. As www.highya.com
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such, it’s a good idea to never enter your credit card information on a website unless you’re 100% ready to buy. Hack #116 Avoid free trials, which often last a very short period of time (e.g. 14 days). Then, after only having the product for a couple days, your credit card is charged the full price of the product. Hack #117 Watch out for enrollment in an autoship program. While these are often promoted as a way to make sure you never run out of a product, the reality is that they usually end up giving you more product than you need, while applying recurring charges to your credit card each month. Hack #118 Keep an eye out for websites that are difficult to use, appear to have been built quickly, and/or contain a lot of spelling or grammatical errors. Hack #119 If you have difficulty locating contact information for a company. Or, if you do, this information consists only of an email address. In either instance, ask yourself, “Why isn’t there a live person that can help me?” Hack #120 Be wary of websites that contain a lot of marketing hype, but provide very little usable information about how the product actually works. Hack #121 Closely related to the above, watch out for companies that don’t provide any evidence to support their claims.
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Hack #122 Research the product thoroughly, and keep track of reports relating to generally poor customer service (e.g. constant upsells during calls, difficulty processing returns, personnel are rude/not knowledgeable about products, etc.). Note: Watch out for a high number of overly positive customer reviews, which could be fake.[3] Hack #123 Avoid products that charge excessive shipping and handling fees.
Resources: 1. Fake Celebrity Endorsements – What They Are & How You Can Avoid Them 2. 5 Rock Solid Ways to Avoid Hard Selling Tactics 3. 7 Ways to Spot Fake Reviews & Shop Smarter
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ONLINE INVESTMENT “OPPORTUNITIES” SCAMS
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Online Investment “Opportunities” Scams Whether it’s real estate, gold coins and bullion, or stocks and bonds, investing is necessary for most of us to reach our financial goals. But the truth is that effective investing is often a complicated process best left to professionals, although would-be scammers can hook their victims by promising a hands-off experience or outstanding returns. Don’t believe the hype! Now, you can identify potential investing scams right off the bat by implementing these simple tips: Hack #124 Ask yourself, “Does this seem too good to be true?” Online investment scams often promise seniors with “guaranteed” high returns on their investments, and the ability to strike it rich. These individuals will often disguise their scams as a an oil and gas investment, a prime bank scheme, or a “risk free” investment, but which often end up being pyramid or Ponzi schemes. Hack #125 Find out as much as you can about the individual and/or company that’s offering the opportunity. This could be tricky, as they may claim to represent a financial institution or investment company, and might include several initials after their name, which may or may not be legitimate professional designations. Hack #126 Whatever you do, don’t allow yourself to be rushed into making a decision. Scammers typically don’t like it when you ask a lot of questions, so be sure to ask as many as you
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can muster. Hack #127 Finally, be sure to read through the SEC’s Protecting Yourself Against Investment Fraud booklet. [1]
Resources: 1. Protecting Yourself Against Investment Fraud
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FAKE WEBSITES SCAMS
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Fake Websites Scams Sure, in today’s digital age, every company needs to have an online presence in order to sell their products. But less-than-stellar companies will purposely build websites that are intended to appear legitimate, but are nothing more than cleverly devised scams focused on tricking you into handing over your money. The solution? These tips will help you quickly identify a fake website and save more of your hardearned cash: Hack #128 Scam websites[1] have started including social media buttons on them, although they’ll rarely work. In other words, when you scroll over them with your cursor, you’ll find that you can’t click on them. And if you can, it’s often the case that they’ll just lead you to another section of the website that (once again) asks for your money. Hack #129 Websites built to scam their visitors often include links that will only redirect you to a page that asks for a sale. The reason the website creators do this is so that they and their affiliates will earn as much money as possible from the people who click on these links and purchase their products. Hack #130 Avoid websites with “odd” URLs. For instance, you may come across a site with a URL such as www.EveryDayWithRachel.com (e.g. famous chef and TV personality Rachael Ray), which you’ll probably notice that there is no A before the E. However, everywhere
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else on this site, the creator might spell Rachael’s name correctly, which should immediately raise a big red flag. Hack #131 Avoid websites that supposedly include pictures of happy past clients, but are actually just stock images that can be purchased by anyone. Hack #132 Also, beware of websites that use fuzzy language about any celebrity endorsements. Unless the manufacturer specifically states that the celebrity has endorsed their product, it may be fake. Hack #133 Stay away from websites that automatically detect your IP (Internet Protocol) address, which will identify the city you’re located in. You may see something like, “Looking to earn more money in Seattle? Click here!”
Resources: 1. 6 Ways to Spot a Scam Website in Less than 30 Seconds
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SUMMER SCAMS
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Summer Scams The days are long, the sun is shining, and the temperatures are hot. Summer is a great time to get outside and play, but it’s also a time when scammers come out in full force. But don’t worry! Break out the sunscreen and the iced tea, because we’ll help you avoid summertime scams with these cool tips: Hack #134 Keep in mind that reputable tradesmen would never approach you unsolicited and offer to perform low-cost repairs to your home (e.g. roof, etc.). Hack #135 If they do though, don’t feel like you need to make an immediate decision. Instead, ask for their business card and spend a day or two researching your options. This includes searching for the company through the Better Business Bureau, obtaining references for some of their past clients, and verifying their local address. Hack #136 Most scammers will attempt to make you pay the entire amount upfront, and even to bill you for work you didn’t approve once the job is complete. As such, if a contractor refuses to provide you with a written estimate, politely decline and contact local law enforcement. Hack #137 Verify that the contractor has valid insurance that covers their employees in the event of an accident. Otherwise, they may intentionally injure themselves just to rack up as many charges as possible.
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Hack #138 For summertime vacation rentals and/or timeshare opportunities, always check the seller’s phone number and address, as well as the address of the property they’re promoting. In addition, ask for references of past clients and always pay using a method that can be easily tracked and disputed (such as a major credit card or PayPal) should things go south.
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TAX SEASON SCAMS
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Tax Season Scams The say the only two sure things in life are death and taxes. A third “sure thing” they forgot to mention though, was that during tax season, there will be thousands of scammers lying in wait to separate you from your money. Read through these effective tips, and we’ll help you focus on your refund instead of worrying about tax-time scams: Hack #139 Avoid doing business with anyone who promises you an inflated refund. Hack #140 Be careful who you share personal information (social security number, financial information, etc.) with. When you are required to share, make sure to ask why they need it, how they will safeguard it, and the consequences of not sharing. Hack #141 Before throwing anything away, shred personal and financial paperwork that you no longer need, including tax forms. Hack #142 Scammers will often canvass whole neighborhoods looking through mailboxes and searching for important mail that they can use to steal your identity. Because of this, make sure you quickly remove mail from your mailbox, while outgoing mail should go to the post office. Hack #143
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Watch out for fake phone calls from someone claiming to be from the “IRS.” This is because the IRS will almost always contact you via mail. If you first receive contact via phone or email—regardless how official it may appear—this may be an immediate indication that it’s a scam. Hack #144 Furthermore, the IRS will never ask you to pay anything over the phone, or request credit card numbers, PINs, or prepaid debit cards. If you have no reason to believe you owe the IRS any money (or even if you do), hang up the phone and call the IRS directly at 800-829-1040. This is the only way to make absolutely sure.
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WHAT TO DO IF YOU’VE BEEN SCAMMED
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What To Do if You’ve Been Scammed Did you already fall victim to a scam? First, take a deep breath. Then, immediately put these tips into action so you can minimize the damage and get your life back on track: Hack #145 • File a police report with your local precinct. • Then, make sure to file a report with the FTC. • Contact your state’s attorney general. • Post your experience on consumer advocacy websites such as HighYa. Get the word out to make sure the same thing doesn’t happen to someone else!
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CONCLUSION
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Conclusion Congratulations! You’re now armed with the essential information you need in order to identify the most popular scams and stop them in their tracks. How’s it feel to be such an awesome, scam-fighting superhero? Pretty great, right? Well, be sure to spread this great feeling by sharing what you’ve learned with all your family and friends. After all, they deserve to feel like superheroes too, while saving more of their hard-earned money! In the mean time, for more advice and tips on how you can avoid scams, check out www.highya.com.
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