The Importance of Avoiding Fraud and Scams

The following is a sponsored blog post:


Wherever there is money there is temptation. Everyone needs to be on their guard when it comes to the financial companies they deal with and the security of their personal financial information.


It is natural to feel under stress if you are in financial difficulties. It is no relief to know that many other people are in the same position after the years of the recession. It is often a slow process getting out of trouble and there are dangers around unless you are careful. Unfortunately it seems that there are ways that unscrupulous people can find out if you are in financial difficulty. It will not happen if you have been careful in the first place only to talk to companies that can guarantee discretion and confidentiality. Some cannot do that and as a result information is leaked and scammers are only too happy to try to use it to their advantage.



The Federal Trade Commission (FTC) is tackling the problem of attempted fraud but that does not mean that it will immediately cease. Numerous complaints are still being received but there are a few things you can do if you suddenly receive an unexpected call about finance, especially one asking for money with the threat of further action if you do not pay immediately.



If a call threatens arrest then it is a scam; no one can be arrested for civil debt and this is an attempt to stress you further and pay money without thinking. It is important to compose yourself in the face of an unexpected telephone call and ask for written evidence of your debt. If somehow your details have been leaked by someone to whom you once made a installment loan application the extent of the scammer’s knowledge will be you asked for money, not what might have happened subsequently. The Fair Debt Collection Practices Act requires that legitimate callers provide a validation notice of the debt which scammers will be unable to do. It is worth noting that if you do receive a legitimate summons you should always respond; do not simply ignore it because the problem will not suddenly disappear.


It seems that the major target for fake debt collectors are people who have taken out emergency loans; payday loans tend to be for people in desperate need of short term money. They are in difficulty already and scammers can increase their problems. There are times when debt is handed over to collection agencies by the original lenders and this is an extremely good reason to be selective about where you look for finance; reputable lenders will be in communication with you at all times and protect your privacy.


Reputable Companies

If you are in difficulties there are reputable financial companies that may have the solution to your financial problems if you can demonstrate that you have a regular income that can justify funds to help you. There will be no question of their allowing information you provide to be accessed by anyone not involved in your discussions. That way you can be certain that everything is handled properly and the chances of a scammer knowing anything about you will be minimal.


If you receive a call from a third party relating to your circumstances you should not panic. Ignore any requests for money at all times and demand to see paperwork evidence of what a caller claims to be a debt payable immediately. Ignore any threats, put the telephone down and contact anyone with whom you have a loan for reassurance. You will not be bothered again by that caller or any other if you simply follow that procedure each time.

8 thoughts on “The Importance of Avoiding Fraud and Scams”

  1. Now with cyber hacking, protecting identity is becoming important. I myself got a call from some scamster, representing irs. I’ve seen some people taken in with scams and phishing attacks. Look at what happened with millions of Credit cards and govt employees personal records stolen! It is becoming a serious prob and all have to be on watch! Good post, DH!
    Race2Retirement recently posted…Dividend Income Update – July 2015My Profile

    • Speaking of federal employees hack…my state uses the same contractor OPM uses…so my ID just got stolen. But good news, I get 18 month of tracking…and then I’m on my own. Anyone have a good credit tracking firm? Besides Lifelock…

      • Hi TBDI,

        I wish I knew of another credit tracking firm. There’s little doubt that identity theft or some other scam will impact us all sooner or later. There really seems to be no real effective way to combat hacking techniques as new exploits are continually being found. It’s not like we can switch to a cash society as every little detail of our lives from credit to mortgage to ID’s are all online. As I commented earlier, it’s all just a cat and mouse game. Thank you for stopping by and commenting.

    • Hi R2R,

      I got those same IRS phone calls. I guess these days with phone spoofing and other sophisticated scams it’s everyone that needs to be wary not just seniors. It’s simply a cat and mouse game. This will never end rather evolve over time. Thank you for commenting.

      • I love those calls. I used to work for the IRS as a seasonal clerk. Here’s a fun thing that all your readers should know. It is illegal for the US government to call you and demand money. All of our contacts were by mail or we just sued you. We never call because it becomes a he says she says ordeal.

        • Hi TBDI,

          Well, you are certainly in the minority for loving those phone calls. I guess you can always have a little phone prank fun with them during a call. It’s just sad how many scams and fraudsters exists these days. I know it’s nothing new as fraud and scams existed since the dawn of humans but they still are annoyances. Thanks for sharing your insight about the IRS not ever making calls.

  2. A relative of mine got a phone call from scammers just the other day. She called the actual company she does business with and they told her she didn’t owe them a penny, let alone have been put into collections.

    I still get the occasional person that comes in and asks if a phone call they received from the bank was legit. Sometimes it is, sometimes it isn’t. Sad that people spend so much time targeting others for scams instead of working to better themselves, build something great, etc. Sad, but not surprising.

    Thanks for putting this post out there! If so much as one scam is prevented because someone read this, then it was worth it!

    ARB–Angry Retail Banker
    ARB recently posted…SEO Web Analysis Report By Redeemed FinanceMy Profile

    • Hi ARB,

      Cheats and liars have been with us since the beginning of man and unfortunately will never cease to exist. The only thing that’s more worrisome is the sophistication of the scams that are perpetrated these days. Like your relative that got a recent call, I too got an IRS call a few months back. I just let the person leave a message. He had a thick Indian accent. Whether it’s a call from the IRS, bank or credit card, the bottom line is we must all watch out. These ever increasing sophisticated “attacks” can claim any one of us. Thank you for stopping by and sharing.


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