How to avoid financial hoaxes?

Failure to identify these hoaxes can result in scam, loss of reputation and funds as well as other financial damages. Fortunately, there are ways to protect yourself against frauds such as keeping yourself from being a potential target and by scrutinizing the information you receive.

Jan 22, 2016 05:01 IST India Infoline News Service

With so much financial misinformation doing round today, you are probably wondering how you to identify hoaxes. Failure to identify these hoaxes can result in scam, loss of reputation and funds as well as other financial damages. Fortunately, there are ways to protect yourself against frauds such as keeping yourself from being a potential target and by scrutinizing the information you receive.
 
According to a survey by FINRA Investor Education Foundation on 2000 persons, 8 in every 10 confirmed receiving a potentially fraudulent offer. Out of these eight persons, 11% confessed to having lost a significant sum of cash through scam unfortunately, since most of the victims fail to report these scam cases due to embarrassment or not knowing where to report the case, the number of victims is bound to increase.
 
According to the survey, 34% of the elderly persons were more likely to lose cash than those in their 40s. The survey further found men to be targeted more than women with the chances of one being solicited by scammers increasing with income and education background. Below are few ways to help you identify and avoid financial hoaxes.
 
Keep your contact and financial details private
 
One way to avoid receiving financial hoaxes is by keeping your contact details private. Avoid sharing your contact information especially during public forums. Never indicate your financial status and keep your bank account number and other personal identification numbers secret round the clock. Avoid hoaxes by making yourself unavailable to scammers.
 
Verify the source and compare with other reliable sources
 
Before making any move on the information you receive, which could easily be a hoax, verify the legitimacy of the source of the information. After that, consult with a reliable source to back the information received. One way to identify scammers is with the fact that they always urge secrecy to deter you from verifying the details they provide. Always do a background check to avoid hoaxes to see if they have been previously used, or for questionable reasoning. You may also choose to discuss the information received with people you trust for their option. 

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