Scams Targeted at Those Experiencing Hardship
09/11/2024
Scams Targeted at Those Experiencing Hardship
Part of being prepared in the case of financial hardship is being able to recognize those that may be looking to take advantage of your vulnerable state. Many scammers target those experiencing hardship because they may ask fewer questions, be desperate for relief, or are scared. Let’s go through some of the most common scams that people see.
- Debt Relief Scams
Debt relief scams usually target those with significant credit card debt. They claim to be able to negotiate with credit card companies to lower the repayment amount to a more manageable number. However, most of these scammers charge a large fee upfront, but never render the services promised. If you are looking for relief when it comes to debt, it is recommended to contact the company directly and see what kinds of payment programs they may offer.
- Credit Repair Scams
When someone is experiencing financial hardship, they may be looking to lower interest rates on existing loans or take out a new loan to help cover expenses. If this person also has a low credit score, it may cause them to get a loan with higher terms or not get a loan at all. Scammers will target those with low scores and claim they can help get negative information removed. Much like the debt relief scams, though, they cannot or do not follow through even when the victim pays them large sums of money.
- Abusive Lending
Abusive lending is often illegal and committed by people looking to take your money. These abusive lenders target people in need of cash and offer them loans with extremely high interest rates and even higher fees. To avoid predatory lenders, make sure you shop around, go to a lender you trust, and fully understand all terms of your loan before signing.
- Insurance Scams
If your financial hardship is due to a natural disaster or injury related incident, beware of insurance scams. People may call claiming to be from your insurance provider or claiming to be a contractor partnering with your insurance company. However, these are scams. Never provide your claim numbers, policy number, or agree to any sort of payment. Avoid these scams by directly contacting your agent at a known number or email address.
- Investment Scams
Many scammers will claim they can help you make a lot of money quickly, and that can be appealing to those facing financial hardship. It is very important to vet any investment opportunities that come your way. Things that seem too good to be true, are limited time offers, or have high pressure attached to them should be viewed skeptically.
If you or a loved one are experiencing financial hardship, please keep in mind that there are many legitimate avenues for help. If faced with a potential scam, remember to stop and talk to those you trust.
Sources:
https://www.ftc.gov/news-events/topics/consumer-finance/debt-relief-credit-repair-scams
https://www.fcc.gov/consumers/guides/after-storms-watch-out-scams