Don't set yourself up to be conned

trueBy Sylvia Juuko

Con artists prey on unsuspecting victims throughout the year, and the onset of the festive season makes them even more cunning. While it’s inconceivable how people fall for these swindlers, those with a lottery mentality are particularly vulnerable.

Given that they come in different forms, extra vigilance and alertness could save you some money.

Consumers should be aware that the festive season elicits some kind of shopping frenzy that the conmen seek to capitalise on. This is usually on the back of a step up in grand promotions by companies around this time of the year to ‘reward’ customers with discounts.

In turn, the con artists keep track of these genuine promotions, which they use to con unsuspecting customers. They will cite an ongoing promotion as a hook to grab your attention. What should alert you is a request for payment prior to retrieving a prize.

Surprisingly, an increasing number of people continue to fall prey to this common ruse is that related to mobile money being inadvertently sent to their phones.

Gullible ones heed the request of sending back the wrongly remitted monies, ending up counting their losses given that no money was remitted to their phones in the first place. Such conmen should be directed to report their ‘mistake’ to the police.

A discerning consumer should avoid anyone that promises better deals compared to those currently on offer. For example those who enjoy window shopping will attest to the fact that it’s common to encounter people hovering around that have a tendency of talking about better deals in comparison to what the shop has on offer.

This seems like a fairly common ruse but surprisingly some people fall for it all the time. You should look out for venders who are in a hurry to sell you products. Such vendors tell you that their product is the last of its kind on offer, with most having run out.

Do not be in a hurry to buy especially when you cannot return the substandard products due to lack of a warranty (for electronics) or a physical address.

Another common con that people fall for is the promise of an investment deal that fetches above market returns. Some of these deals are pitched by an acquaintance or total strangers who inform you of a deal fetching above market returns as long as you put in some initial investment or recruit members to join.

One common characteristic is the sense of urgency where you are required to make up your mind quickly or else deal will be taken to another more receptive ‘investor’. Some of these unscrupulous business people create a semblance of legitimacy by renting offices.

In some instances, you may be lucky to get some ‘returns’ in an attempt by the con artists to cultivate confidence. Given demonstration of an earlier return, people are compelled to up their investment.

However, they will soon discover that the so called investors have vanished with all their investments.

To avoid such scams, you need to be aware that it’s only the Capital Markets Authority (CMA) that regulates all fund managers and brokerage firms who are licensed to collect/pool money on behalf of small investors for onward investment.

Dealing with firms that are not licensed exposes you to exploitation and eventual losses. To avoid losing money, desist from answering or engaging in any business that is introduced through an unsolicited e-mail.

If you respond to such mails, you are simply informing the other parties that it’s a working email. Avoid exposing your account to identity theft by deleting such mail.

Anyone who thinks that they can hand over their money to another party to multiply it through magic of some sort is setting themselves up for major losses and heartache.

The writer works with Bank of Uganda
personalfinance222@gmail.com