Financial Scams Part 1: 3 Common Scams to Watch Out For and Avoid
Scams have become a part of our society today. Unfortunately, when we hear of a good deal or a great offer, typically we think, “what is the catch?” So, why have we become inherently skeptical of all things which might be wonderful opportunities? The cause is in the barrage of lies, scams, tricks, and other means to separate us from our money. The sad part is these scammers are getting smarter. We need to be on the lookout more than ever to spot these fraudsters. These posts will be in a two-part series to discuss big scams and little scams.
3 Common Scams to Watch Out For and Avoid
The “Genie” Caller
One of the easiest scams which can hit anyone is the “genie” caller. 
In this scam, a person will call you to grant you an amazing offer. Typically it is a sum of money or the ability to quickly attain a sum of money. These are always scams! The person with rationalize with you why this is a legitimate claim. You are not randomly selected, you didn’t receive a special offer, and you aren’t going to get rich from their product. Hang up the phone, and block the number.
The “Free Lunch”
This one is a classic example of a scammer knowing their audience. The “free lunch” is the art of bating people to come and enjoy a free breakfast or lunch while listening to some people speak. 
Typically these people have their own products which they will try to entice you with. They will each guarantee you huge profits with a simple one-time investment into their product or system. Many in the group will walk away, but more will fall victim to the scheme. Once the investment is made (non-refundable) they will give you more speeches and success stories. However, you will have to invest more money to reach those levels of profits. This compounding effect doesn’t end! The study of Economics supports it, there are no “free lunches” in society. Do not go to these events! Just don’t do it!
The Pyramid Scheme
Unlike the pyramids of Giza, the pyramid in this scheme will not stand the test of time. Pyramid schemes are rather simple in their structure. There is a product or service which is produced or sold to consumers. 
The pyramid begins with the top creator or business. They recruit others to then produce or sell the product to others while also enticing them with more money if they are able to recruit more salesmen under them. This process continues until the iterations of these salesmen recruiting others will stem too far down from the original. At this point, the overall profits are no longer able to sustain all parties involved or the ability to sell has halted. In either case, the model is not a viable business solution for long-term profits. Being part of building a pyramid should be left to the pharaohs of ancient Egypt.
It is best to understand these scams earlier rather than later. Once you are able to recognize them, you will be able to avoid them in the future. Although there are many scams in the world, we wanted to list some common ones. The best advice we can give you is to be mindful of the things you are presented with on a daily basis and do not take anything at face value. Do your research, question the validity, and know when to walk away!