By taking the following precautions, you can spot a scam and avoid being ripped off.
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Don't allow yourself to be pushed into a hurried decision. At least 99 percent of everything that's a good deal today will still be a good deal a week from now.
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Always request written information, by mail, about the product, service, investment or charity and about the organization that's offering it.
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Don't make any investment or purchase you don't fully understand. Swindlers try to convince individuals that they are making an informed decision.
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Ask what state or federal agencies the firm is regulated by, and contact the agency. If the firm says it's not subject to any regulation, you may want to act cautiously.
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If an investment or major purchase is involved, request that information also be sent to your accountant, financial advisor, banker, or attorney for evaluation and an opinion.
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Before you make a final financial commitment, ask for a copy of the refund policy and make sure it's in writing.
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Beware of testimonials that you may have no way of checking out.
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Never provide your credit card number and bank account information over the phone.
- If necessary, hang up or walk away. If you hear your own better judgment whispering that you may be making a serious mistake, just say good-bye.
