Tuesday, September 19

Flipping Money Scams on Social Networks!

As if the lack of privacy on social networks isn't bad enough, there is something else that may be worse. You could lose lots of money if you are caught in a "money-flipping" scam.

How, you ask?

What Is a Money-Flipping Scam?

According to Scambusters.org, money-flipping scams have been around for a long time. These are simple scams where someone tells you that they know a secret trick that can double or triple your money. All you have to do is give your money to them. Needless to say, they make a run with your money.

You would think this scam is easy to spot, right? Well, you'd be surprised how many young people fall prey to money-flipping scams on social media every day, on Facebook, Instagram, Twitter, you name it.

The scammers make it fun and appealing to participate by using pictures of pretty people swimming in money. They use appealing headlines such as "double or triple your $20 investment in minutes!"

With a small investment like that, how much could you possibly lose? All the person wants is a little commission. Plus, they use normal-sounding profile names like John Robertson or Lucy Valdez, to make it all the more believable.

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Never use a prepaid card without thinking about it defensively.

Well, let's say you need some (quick) cash and decide to participate. You "friend" or "follow" the scammer on the social network, he/she gives you their email or phone number, and you connect.

You talk and learn that the process is simple. You get a prepaid money card and credit a specified amount of money to it.

So, you get your money card with a $200 balance. You are then told to provide the card details so the person can use this info to work around the money system and double your cash. They ask for the card number, pin number, time of receipt of transaction, etc.

The next thing you know, you're unfriended or blocked on the social network. You never hear from the scammer again.

The scammer is long gone and you lose all the cash on the prepaid money card.

Avoid Being Scammed

So what can you do to avoid being scammed like this? Just like the scam itself, the solutions are simple:

  • The cliché comes into play: If it sounds too good to be true, it probably is.
  • If someone you don't know offers you free cash, it's probably a scam.
  • If someone asks you for personal or financial information, DO NOT provide it unless you know the person requesting it.
  • Be very stingy with your prepaid card details. Research the person online. It is probably a scam.
  • Never give out PIN numbers. Ever.

Now, a bonus fact: Flipping scams are rotten, but prepaid cards can make sense. There are many prepaid cards available: VISA, MasterCard, Mango, PayPal, and MoneyPak are just a few. They all come with different regulations, prepaid amounts and fees.

The Moral of the Story

Never use a prepaid card without thinking about it defensively.

Learn how to use your credit card wisely. Start with our free FoolProof Solo program and work through Chapter 6: Sucker Punch.

That's it for now. I hope this helps!

Cheers,
Will

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