Today’s economy is giving everyone a hard time, as the financial crisis has affected all of us. This led to many people losing their jobs or being at risk of being laid off. Therefore, most of these people are deceived by money scams and end up losing everything that they have. Burglars have come up with so many money scams in the recent years, that even the most knowledgeable expert may be tricked into thinking that they are legitimate. In the United Kingdom, the percentage of money scams has also increased. Here are the most common money scams in the UK, for you to know what to stay away from.
Bogus Holiday Clubs are money scams in which customers are approached when they are on holiday or at home in Britain. They become victims of the scam after they are lured with the promise of a free holiday, in exchange for taking part of a presentation. However, during that presentation, they are pressured into agreeing to a holiday club which offers great holidays worldwide in top-class resorts. Later on, victims come across the unpleasant surprise of the holiday not being free after all, since they must still pay for flights and other add-ons. Moreover, the dates and destinations are not clearly specified, so the promised holidays are usually not available at the wanted time and place.
Other common money scams imply high-risk investments. These money scams take advantage of people’s ingenuity. Victims are approached by either phone, letter or e-mail and are given the chance to make an investment in ‘rare’ high-value items, such as shares, gemstones, or fine wine. They are lured with the promise of those items rising in value sky high. However, the items purchased are often over-prices and have a very high risk, therefore making it difficult to sell on.
Pyramid selling and chain letters are also money scams you should look out for. These money scams work on a very simple principle: consumers are asked to become a member by paying an amount of money, with the promise of them making money in return as long as they recruit new members, therefore creating a pyramid. However, an endless supply of new members is demanded in order for each member to earn some money. These money scams seem legit and therefore trick many people into losing their money.