Be it a telemarketing scam, phony investment, mail order scam, employment opportunity or bogus lottery, you can protect yourself when it comes to fraud.  How?  Take these steps:

(1) Sign up for the Do Not Call Registry. This government sponsored list helps keep telemarketers from calling you in the first place.  It’s easy to do and gives notice to companies to leave you alone.  Click here for more information.  And if you don’t sign up, never be afraid to be rude to telemarketers who call on the phone.  Telemarketing is an invasion of your privacy by people whose sole goal is to sell you goods and services you probably don’t need.

(2) Avoid so-called “free-lunch” seminars. Many companies or individuals host these hoping to lure potential clients to invest in business opportunities, time-shares, or to buy certain stocks, or services.  Chances are good, the lunch will come with high pressure sales tactics to part with your funds.  Unless you are practiced in saying no, skip them altogether.

Learn to walk away. There's always another deal.

(3) Wait at least 24 hours after being presented with any sales pitch before buying anything. Companies often use sales pitches that require you buy today or you’ll lose the best deal or discount.  Time shares are notorious for this tactic.  Walk away from them and give yourself the time and space to think with a clear head.

(4) To keep others from stealing your identity and taking out credit cards in your name, register at OptOutPreScreen.com. This service was created by the major consumer credit reporting companies to allow customers to enter their preference to opt out of credit card and insurance offers by mail for up to 5 years.  Though it won’t completely stop the onslaught of junk mail in your mailbox, it will have an impact.  Click the link for more information.

(5) Never send money with any job application. This famous scam is one that apparently won’t die.  The way it works is this:  You are asked to fill out a form or online application for a job (often promising high-pay) and are required to pay an upfront fee to “process” your application.  Legitimate employers will not charge a fee to submit an application.  Also, do not send your social security number, driver’s license number, or other personal information online to any employer you haven’t met.  This scam is a great way for identity thieves to mine your personal information.  Don’t fall for it.

(6) Avoid investing your money in any investment promising spectacular returns. Unless you’re a very sophisticated investor, avoid investments like these as if they were the plague.  Spectacular returns (say of 30 – 50% or more) are often Ponzi Schemes or investments in the stocks of extremely small companies which have as good a chance of going belly up as having a big gain.  If you are unsure how to invest your money, ask a friend you trust, qualified investment counselor, your accountant and/or your attorney for help and avoid investments that are solicited.

(7) Avoid “900″ number phone scams. Take a look at the number any company asks you to dial.  If it starts with 900 it’s a call that can incur significant toll charges.  Many scams involving emails or websites may direct you to call a 900 number after informing you have won a prize.  What you may not realize is for every minute you’re on the call you’re being charged and some of those charges are outrageous.

Children and grandchildren of seniors take note:  Seniors are often targeted for many mail and telephone scams.  Be sure to inform older or disabled parents or grandparents of common scams and to insist they never give out personal information to companies or sales people who call.  Also, inform them that some “surveys” are simply a means to collect personal information that can be used by marketeers.  That means they shouldn’t be afraid to tell the caller they don’t participate in phone surveys.  Also, have them check their credit card bill closely for unusual charges.  If they have any charges listed they do not recognize, they should dispute them with their credit card company.

Have you been the victim of a fraud?  Want to share your experience to help our readers avoid a similar fate?  Please feel free to comment below.

By Bob Anderson

© 2011 Javabird LLC.  All rights reserved.

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If you enjoyed this post, you may want to read:

7 Steps To Secure Your Financial Future

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