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Be On The Lookout For These Four Financial Scams

How many of you have received this type of e-mail at one point in your life . . .

MY AIM OF CONTACTING YOU IS TO SEEK YOUR ASSISTANCE IN TRANSFERRING THE SUM OF THIRTY FIVE MILLION UNITED STATES DOLLARS ONLY (US$35,000,000) OUT OF NIGERIA AND INTO YOUR TRUSTED BANK ACCOUNT ABROAD. THESE FUNDS WERE PART OF THE FUNDS, WHICH WAS FOUND IN HER LATE HUSBAND’S PRIVATE ROOM. IMMEDIATELY AFTER HIS SUDDEN DEATH LAST YEAR AND SHE QUICKLY INFORMED ME, SINCE I VIRTUALLY RUN MOST OF HER SECRET BUSINESS BOTH HERE IN NIGERIA AND OVERSEAS, AS SHE HAS A LOT OF CONFIDENCE IN ME AND FORTUNATELY WITH MY IMMEDIATE ASSISTANCE, AND CONTACT WE WERE ABLE TO DEPOSIT THE MONEY IN A SECURITY VAULT PENDING WHEN THE WHOLE SITUATION WILL BE CALM.

These scams were known as the Nigeria Scam letters, and most consumers know that if they receive these they should immediately delete them and not respond.   However, today there are a whole host of new scams out there that you need to be on the lookout for as technology evolves.    By not getting caught in these scamming traps, you’ll avoid making a bad money move that could affect your financial future.

1.) Crowd Funding and Internet Offers Since the 2012 jobs act really eased the rules for small businesses to raise money via stocks offerings, you should be very wary about potentially putting money into a private business.  According to the USA today (www.usatoday.com), NASAA has noted 1,600 to 1,700 new Internet domain names relating to crowd funding.    You should only invest in private business ventures with people you know, a business plan you have fully reviewed, and be prepared to risk the capital knowing you could lose 100%.

2.) Precious Metals With the concern about the value of currency, many investors have flocked in the past decade to increase their exposure to precious metals like Gold and Silver.   If you decide to engage in this type of investment, be sure that you can physically pick up or take possession of the precious metal before you pay a nickel.  Some websites say that your Gold will be secure and stored in a vault for you when the truth is there are no Gold and no vault.

3.) Websites That Try To Make Money Off Of You From Pictures That Could Hurt Your Reputation  If you ever had something go wrong and ending up having your mugshot taken, you could have even more trouble now.   Since most people will Google you when they meet you, a company called www.mugshots.com publicly lists mugshots of people on their site.   Although they are a business, it almost feels like extortion or black mailing as they charge you a fee in the ballpark of $399 to supposedly remove your picture.   The main scamming issue to watch out for is that even if you get a court ordered expungement and sealing, they still won’t remove the pictures.   This is something you need to be very wary of as they can keep on moving the pictures to different sites and keep on charging you more money.

4.) Taxpayer Scam targeting military and government workers Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida.

The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name. (source: www.irs.gov)

Keep an eye out for these and other places trying to separate you from your money.    If you click something on the internet and it seems like the computer is asking you for money or your credit card number, it’s probably best not to pursue it if you don’t know who you are dealing with on the other end.

Also read – Protecting Yourself From Online Hackers

Go to www.oxygenfinancial.net to request a consultation on how to make smart money moves for your future.

Written by:

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder of oXYGen Financial, Inc – The Leaders in Gen X & Y Financial Advice and Services

 

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About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves

Hey!

My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

Background and qualification information is available at FINRA's BrokerCheck website.

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