How to not get Scammed!

1) Use your brain and common sense.
2) Do your research
3) Use referrals
4) Use methods of payment with fraud protection
5) Get it in writing
6) Read the return policies
7) Read the description fully and examine the item before you buy

Example A) A man calls asking for money for the local police department who is sposoring a program for seat belt safety in schools. (You think he is for real because he as a CB radio as background noise.) Take his number and tell him you have to call him back. You then call the local police department and they confirm that they will never call and ask you for money and that they sponsor no non-profits.

This is a real scam out there and the CA number on your Visa forwards to a number in New Jersey. It is difficult to prosecute across state lines but your best bet is the fraud protection on your Visa. Capital One for instance has a zero deductible on fraud protection unlike HSBC which has a $50 deductible for out of state transactions.
This is a real scam that has happened to me and a handful of people I know.

You can also contact the Attorney General in your state for further assistance and to report a claim. You are very likely not the only victim.

Example B) You buy insurance and are unhappy with their decision on your claim or they refuse to pay. You can report them to the Insurance Commissioner of the state you live in. And by the way, even if you don't put a beneficiary on file all life insurance must pay out to a beneficiary upon your death (provided you have made all of your payments before your death and the policy is still active) and it is their job to locate one. You also checked the credit rating of the insurance company before you bought the policy. You are also smart and know that each state has a back up plan for insurance and there is something called re-insurance which guarantees insurance policies along with the state insurance fund that insurance companies must pay into in order to sell insurance in each state. (For some reason insurance agents aren't allowed to tell you this.) Beyond that insurance companies must have 3-4 times the assets to back up each policy that they write.

Example C) If a bank promises you a rate of return with zero downside as in you don't have to keep your money for any period of time but will get say 10% interest (APR) without any risk of losing money it is a ponzie scheme! Even if your uncle has invested here and got 10% back, stay away. Duh!

Example D) You bought the stupid maintenance guarantee on that sewing machine and it breaks down. You have your receipt and the store is still in business 3 years later (lucky you!) but the policy has changed at the store regarding their guarantees. They still have to honor your original contract and fix your machine. In fact depending on your agreement they may have to give you a free rental but they won't honor this unless you have all the proof and it hasn't disintegrated in time because you were smart knowing the ink would fade on the receipt and photocopied that shit! In fact you were so smart you file the photo copy of the receipt with the manual.

Example E) A cute guy tells you you are beautiful and asks you to buy magazines in a mall or door-to-door. This is a scam, don't do it! You will never receive the magazines. Whatever you do don't pay in cash.

Example F) A guy flags you down saying he has a huge deal on speakers, that he is a delivery guy and got an extra shipment and even shows you the speakers and a FedEx receipt. Don't buy these as inside the plastic speakers is nothing!!!!

Example G) You have over-paid your student loans when you can and now can't make payments on your loans and despite a financial hardship application the loan company tells you you owe late fees and they never received any application. They also try to make their own rules instead of following federal law which states you only apply every year, not every 6 months! They also want you to pay the interest for you during that time but you know the law and the federal government pays that interest per your loan agreement! But you were smart and kept a copy of that app, certified those letters sent and filed a complaint with the Ombudsman in Washington DC that governs student loan complaints. Even your smart lawyer aunt told you not to bother and that no one has ever won a case against a student loan company. But you prevailed! And besides no late fees since you had over-paid for years you actually get to defer your loans interest-free for two whole years! Bite it, Campus Partners!

to be continued...