How to Spot a Scam

From time to time we all feel cheated in one way or another. How can we avoid falling for the numerous scams, or frauds, that are described on the internet? Spotting these scams is not always easy.  Here I list some thoughts which may help you to avoid them.

First, remember that a scam is a dishonest attempt to trap you into parting with your money. The fraud will focus upon an anxiety or unsatisfied need. The proposal will offer an unrealistic reward or incentive in return for parting with your cash.

Self awareness and a balanced understanding of our wants and desires is the strongest safeguard we have against falling for a scam.  We are all vulnerable to scams because we have aspirations.  Aspiration and ambition is healthy. It is kernel to our human civilisation. There really are genuine opportunities within our wonderful world.  Achievements are possible through the combination of hard work, commitment, talent and luck.  Some individuals are capable of meeting the extra-ordinary claims laid down in their business proposals. Within these muddy waters it is all too easy to fall for a scam.

When you read a business proposal ask some basic questions.

1. Be critical. Be skeptical. Is the offer too good to be true? Consider the language. Establish whether there is an intent to deceive. An opportunity that offers quick, or guaranteed results, is unlikely to be sincere.  Although not misleading, an offer that emphasises hard work and states that good results are possible could lead to disappointment.  Be self aware. Do you have the skills that are required for success?
2. Consider how you were introduced to the opportunity. Was the approach impersonal or directed to your specific needs? Even if the approach meets your specific needs check whether it was a mass produced and has reached you through a scattergun technique. If approached by email check the time that the message was despatched.  Does this fall within normal working hours or suggest a mass mailing in the early hours. By suspicious if the approach does not include verifiable contact details.  Check whether the proposed activity is subject to licensing or regulation and be very suspicious if the licence number or name of the regulatory body is not mentioned.  Be suspicious if the opportunity is sourced from an obscure jurisdiction.
3. Consider the language used in the proposal. If you wish to avoid a scam this is your greatest tool.  Many scams are operated from foreign counties.  Watch for unnecessary grammar and spelling error. Does the writer have a basic command of English?  Consider how the business pitch is built up.  Is there an unnecessary back story?  Does the article contain confusing tidbits and unnecessary pieces of information. These inserts are designed to distract the reader from the central proposal which may be unsound.  
4.  Be analytical. Consider the bait, the catch and safety net in each proposal.  Identify the anxiety or unmet need that the proposal is addressing.  Consider that the proposal is a scam and identify how it could steal your money. Is it possible to set up a safety net so that you would not lose money. Assume the worst and only proceed if you can answer these questions.
5.  Avoid opportunities that require upfront information. There is no need to divulge cash, personal details and social security information.  Although this information may be required before you can take up the opportunity, a genuine site would not be upfront.
6. Avoid opportunities that press for immediate action.
7.  Avoid pyramid schemes. A pyramid scheme relies upon enrolling people into a scheme without actually delvering a service or product. These activities are illegal in many countries.  Does your performance depend upon your abilty to enrol other members?
8. Research the opportunity on the internet.  What do other people think? Pay attention to testimonials. Are they genuine?  Check out the websites.

Be aware that when someone takes up an opportunity that fails there is a strong temptation not to admit personal failure and consider that the opportunity was a scam. Consider Triond. Although the site does not make dishonest claims it can leave a writer disappointed. The Internet is peppered with disappointed writers who believe  that the site is a scam. There is a fine line between personal failure in the face of an opportunity and an involvement with a scam.

Use the resources provided by Government consumer affairs departments. These  accept complaints that involve fraudulent activities.  Cross-reference against the major scams that they have encountered.

I attach links to two of these sites.

• US site : Consumer Fraud Reporting in the US
• UK site : Consumer Fraud Reporting in the UK

The US site contains links to consumer affairs departments in other jurisdictions.

At the end of the day the best advice is to identify scams through common sense.  Ask yourself  whether the proposal feels right?  Avoid the temptations offered by a scam by developing a strong sense of self awareness.  Remember that although a scamster may be dishonest, misleading, immoral or underhand you have the free will to engage in their plan or otherwise.