Personal Development, Business, Finance, and Investing for Everyone
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Stay alert to avoid being victimized. Say no to scams!
Fraudsters and scammers have become more and more creative and sophisticated in their attempts to gain access to your personal information and financial accounts.
What is a scam?
A fraudulent scheme typically committed to cheat a victim into giving money resulting in the victim’s financial loss.
Article 1338 of the Civil Code of the Philippines states that there is fraud when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to.
Insidious words or machinations refer to a deceitful scheme or plot with a fraudulent purpose. It can be done by concealment or omission of material facts.
How do frauds happen?
Fraudsters usually pose as someone they are not. They prey on people’s emotions to manipulate our human tendency to trust. They tell stories that either resonate to our sensitive side or to our desires and aspirations. Then they employ tactics to induce pressure.
Fraudsters promise the prospect of instant and guaranteed wealth. People tend to forget that “If something sounds too good to be true, it usually is a scam.”
To increase trust, fraudsters claim that others have already joined or contributed to a cause at hand, like an investment opportunity.
To further build credibility, fraudsters claim to be affiliated with a reputable agency or claim to have a special expertise.
Scammers are experts in manipulation and they will spend time earning your trust until you let your guard down. To avoid loss when faced with a scammer, exercise the following three activities:
Before providing personal information or giving away money, take a moment to pause and think about the credibility of the person or company you are dealing with, the soundness of the information being provided, and the possible risks of a certain action.
When in doubt, do not rush into a decision. Scammers usually create a false sense of urgency. Examine the situation first and ask questions. Challenge the person you are talking to about the things and ideas that you are not sure of and are uncomfortable with.
Give yourself time to study and get as much information from different sources. Consult other people who are familiar to you or who are experts on the issue at hand. You can also get information from credible agencies like government institutions or reputable private organizations.
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ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.