Any financially savvy person knows that savings are essential to safety. However, millions of people around the world are caught by savings fraud that can consume their money with little benefit.
So that you don’t fall victim to one of these savings frauds, we have cataloged four of the most common ones. Read on to learn more and to avoid losing your savings.
1. Investments in maintenance easements
One of the most common savings frauds is investing in maintenance easements. This process involves a landowner selling certain rights to their property to an organization that agrees to receive the land.
The Internal Revenue Service has named investing in conservation relief as one of the “dirty” tax evaders investors should avoid. This shows how financial specialists around the world believe that this is a dangerous scam that can wipe out savings.
Conservation Easyment Investment Loss law firms can help you understand more about the process and understand why it can be dangerous. Please see the linked page above for more information.
2. High Yield Loans
It can’t hurt to take out a small loan to pay for an investment, can it? Not correct. Many loan sharks charge high interest rates and employ aggressive tactics, which results in a small pile of debt in no time.
If you need to take out a loan for investment purposes, you should always do so through a trusted bank or building society. Although the process of borrowing can be more complex, it helps protect your savings and credit history over the long term.
3. Phone call fraud
While you might think you would never fall victim to a scam, 14.4 million people did it in 2019 alone. One of the most common scams involves fake phone calls or text messages stating that they are from your bank.
Although your bank will sometimes call you, you will never be asked to provide sensitive information such as your PIN or bank account details over the phone.
If you are unsure whether a call is legitimate, your best bet is to hang up and call the bank back at the official number. If the call was legitimate it wouldn’t be a problem, but if it was a scam you would have effectively protected your money.
4. Unofficial investments
While unofficial investments can be an interesting proposition, they will almost always cost you a lot of money with little returns. While investing through official channels can help your money grow, you should never invest without a contract and clearly defined terms.
This is true even if you are investing in new businesses from family or friends. While it can be tempting to do the kind thing and lend them some money and trust them to pay it back, it can be very dangerous. There is no way you should do this unless you know the person well.
Ultimately, asking someone to draw up a contract is the safest option for both parties, even if it can feel awkward.
Watch your savings grow
It can be difficult to manage your savings, especially as the scams only increase. While it can be easier to hire someone to professionally manage your wealth, many feel more secure and enjoy doing it themselves.
The UK alone lost £ 783.8 million to scammers in 2020 – so you need to keep your savings safe. The most important thing to do is always double or triple verification checking a system before investing any money. It’s much better to play it safe when it comes to your savings.
Now that you know how to keep your savings safe and secure from fraud, you are ready for a fruitful and fun investment experience.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore the information contained herein, including opinions, comments, suggestions or strategies, is for information, entertainment or educational purposes only. This should not be taken as financial or legal advice. Anyone considering investing should do their own due diligence.