There is no such thing as easy money
Sep 15, 2011
TOPIC of the week:When your finances are always in the red, you are more likely to fall victim of scams that promise quick returns. Keep in mind that clean money comes with hard work
By Sylvia Juuko
TOPIC of the week:When your finances are always in the red, you are more likely to fall victim of scams that promise quick returns. Keep in mind that clean money comes with hard work
Have you even been contacted by a friend beaming with excitement because they have an exciting investment opportunity? They usually promise instant wealth, risk-free and hustle-free.
More to that, they give assurance that this investment opportunity is exclusive, and you are better off not ‘spreading the gospel’ about the deal. But there is always a catch.
All you need to do is to pay some ‘initial deposit’ at some obscure account in a financial institution, sign up a couple of friends and you are good to go. The more friends you sign up, the more money you mint.
And if you have dreamt about a situation where you are not answerable to any boss and can make money from the comfort of your house, this can be a tempting proposition.
The common characteristic about such schemes is that money is made after several members have been recruited.
This is a basic example of a con artist or fraudster at work.
Unfortunately, there is an increase in the number of cases of people who have fallen for this ruse.
Whenever there is financial pressure or trying economic conditions, con artists or fraudsters step up their game. For some cases, victims fall for these tricks due to ignorance.
Experts will tell you that these con men/women take on different styles ranging from the sharp dressers to the more mundane look.
These fraudsters have a number of ways through which they execute their thieving ways. The most common is the salesman approach in which a stranger walks up to you pretending to be your former school mate or work associate.
They either offer a too good to be true business proposition or offer ‘goods’ for sale. Others make phone calls to targeted victims getting background information that they can use to execute their con.
Another common form of con is the online sales scam via your e-mail that contains flowery language, extolling you to take advantage of an opportunity of a lifetime.
Other conmen are bold enough to set up plush offices in the city or towns, swindle the victims and pack up when clients return to pick their bounty at specific ‘maturity period’ of the investment.
Further still, con artists keep abreast of ‘win money and prize’ competitions that have been launched by genuine companies.
They ride on the advertisement blitz to place phone calls and text messages to dupe unsuspecting members of the public that they have won.
What people you should ask yourself is the possibility of winning a prize for a competition that you have never entered.
Another equally worrying trend is the usage of technology to dupe unsuspecting victims. Recent press reports show that fraudsters are targeting ATM machines.
Customers are very careless regarding ATMs. It’s not uncommon to find a transaction receipt sticking out of an ATM slot left by a customer.
What they don’t know is that this receipt and your PIN could provide fraudsters or identity thieves with information to deprive you of your money.
In this regard, visit your financial institution to acquaint yourself with knowledge about protecting yourself from ATM related misuse.
Nevertheless, anybody who falls for any kind of scam has a poor money mentality.
If you believe that you can amass wealth without lifting a finger, perseverance or delayed gratification, you can easily become a victim of unscrupulous people who are out to con you of your hard earned cash.
The best option is to arm yourself with knowledge and train your mindset to detect get-rich-quick schemes.
Ultimately, the best rule to follow is that if you do not understand how an investment works or if the deal is too good to be true, don’t part with your money.
The writer works with Bank of Uganda
TOPIC of the week:When your finances are always in the red, you are more likely to fall victim of scams that promise quick returns. Keep in mind that clean money comes with hard work
Have you even been contacted by a friend beaming with excitement because they have an exciting investment opportunity? They usually promise instant wealth, risk-free and hustle-free.
More to that, they give assurance that this investment opportunity is exclusive, and you are better off not ‘spreading the gospel’ about the deal. But there is always a catch.
All you need to do is to pay some ‘initial deposit’ at some obscure account in a financial institution, sign up a couple of friends and you are good to go. The more friends you sign up, the more money you mint.
And if you have dreamt about a situation where you are not answerable to any boss and can make money from the comfort of your house, this can be a tempting proposition.
The common characteristic about such schemes is that money is made after several members have been recruited.
This is a basic example of a con artist or fraudster at work.
Unfortunately, there is an increase in the number of cases of people who have fallen for this ruse.
Whenever there is financial pressure or trying economic conditions, con artists or fraudsters step up their game. For some cases, victims fall for these tricks due to ignorance.
Experts will tell you that these con men/women take on different styles ranging from the sharp dressers to the more mundane look.
These fraudsters have a number of ways through which they execute their thieving ways. The most common is the salesman approach in which a stranger walks up to you pretending to be your former school mate or work associate.
They either offer a too good to be true business proposition or offer ‘goods’ for sale. Others make phone calls to targeted victims getting background information that they can use to execute their con.
Another common form of con is the online sales scam via your e-mail that contains flowery language, extolling you to take advantage of an opportunity of a lifetime.
Other conmen are bold enough to set up plush offices in the city or towns, swindle the victims and pack up when clients return to pick their bounty at specific ‘maturity period’ of the investment.
Further still, con artists keep abreast of ‘win money and prize’ competitions that have been launched by genuine companies.
They ride on the advertisement blitz to place phone calls and text messages to dupe unsuspecting members of the public that they have won.
What people you should ask yourself is the possibility of winning a prize for a competition that you have never entered.
Another equally worrying trend is the usage of technology to dupe unsuspecting victims. Recent press reports show that fraudsters are targeting ATM machines.
Customers are very careless regarding ATMs. It’s not uncommon to find a transaction receipt sticking out of an ATM slot left by a customer.
What they don’t know is that this receipt and your PIN could provide fraudsters or identity thieves with information to deprive you of your money.
In this regard, visit your financial institution to acquaint yourself with knowledge about protecting yourself from ATM related misuse.
Nevertheless, anybody who falls for any kind of scam has a poor money mentality.
If you believe that you can amass wealth without lifting a finger, perseverance or delayed gratification, you can easily become a victim of unscrupulous people who are out to con you of your hard earned cash.
The best option is to arm yourself with knowledge and train your mindset to detect get-rich-quick schemes.
Ultimately, the best rule to follow is that if you do not understand how an investment works or if the deal is too good to be true, don’t part with your money.
The writer works with Bank of Uganda