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Any financially savvy person knows that savings are essential for security. However, millions across the globe are being caught out by savings scams that can deplete their cash with little benefit.
To stop you from falling victim to one of these savings scams, we’ve catalogued four of the most common. Read on to learn more and avoid losing your savings.
One of the most common savings scams is conservation easement investment. This process involves a landowner selling certain rights to their property to an organization that agrees to conserve the land.
The Internal Revenue Service has described conservation easement investment as one of the ‘dirty dozen’ tax scams that investors should avoid. This shows how financial specialists across the globe feel that it’s a dangerous scam that can deplete savings.
Conservation easement investment loss lawyer practices can help you to understand more about the process and why it can be dangerous. Take a look at the site linked above for more information.
There’s no harm in getting a small loan to pay for an investment, right? Wrong. Many loan sharks charge high-interest rates and use aggressive tactics, leading to a small debt ballooning in no time.
If you do need to take out a loan for investment purposes, you should always do it through a bank or building society that you trust. Although the process of getting a loan may be more complex, it will help to protect your savings and credit history in the long term.
Although you might think you’d never fall victim to a scam, 14.4 million people did in 2019 alone. One of the most common scams involves fake phone calls or texts stating that they’re from your bank.
Although there are times that your bank calls you up, they will never ask you to provide sensitive information like your PIN or bank account details over the phone.
If you’re unsure whether a phone call is legitimate, the best thing to do is hang up and call the bank back on their official number. If the call was legitimate, this wouldn’t cause a problem, but if it was a scam, you’d have effectively protected your money.
Although unofficial investments can be an interesting proposition, it’s almost always going to cost you a lot of money with little return. While investing through official channels can help your money grow, you should never invest without a contract and clearly stated terms.
This even applies when investing in family or friends new businesses. Although it can be tempting to do the friendly thing and loan them some money and trust that they will pay it back, this can be very dangerous. You should certainly never do this if you don’t know the person well.
Ultimately, although it can feel awkward asking someone to draw up a contract, it’s the safest option for both parties.
Watch Your Savings Grow
It can be tough to manage your savings, particularly as scams are only increasing. Although it can be an easier option to hire someone to professionally manage your assets, many feel safer and get more enjoyment from doing it themselves.
£783.8 million was lost to scammers in the UK alone in 2020 — so you must keep your savings safe. The most important thing to do is always double or triple-check that a scheme checks out before investing any money in it. It’s much better to be safe than sorry when it comes to your savings.
Now you know how to keep your savings safe and protect yourself from scams, you’re ready to have a fruitful and fun experience investing.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial or legal advice. Anyone thinking of investing should conduct their own due diligence.