Don't get scammed out of your hard earned money! Just as soon as people figure out the latest scams, someone else is coming up with a new way to swindle you. But you can learn the way to recognize the red flags that should go up when a crook is trying to scam you. Avoid a scam by following the techniques in this hub!

Remember - if it sounds too good to be true, it probably is!

The number of scams that are out there are too long to list. From elderly people scams, to "wire me your money" scams. It seems that no one is safe. Just last week, I read about a woman who nearly sent money to her "son" to bail him out of jail. Yes... a SCAM!

Some may think that in a down economy, the number scams rise. Not so! Even in booming economic times, con men are out there trying to swindle you out of your money. But you can outsmart them!

Perhaps the most heartbreaking scams you hear about are those involving senior citizens. Trusting and often alone, elderly men and women fall prey to scammers each and every day. Advanced age and memory may make them less than ideal witnesses... if they ever even report the scam. Many times they do not because of shame.

The most common senior scams are those involving Social Security checks and Medicare payments. One common scam is the offer of "free" medical equipment in exchange for Medicare numbers. Once they get a signature, the manufacturers bill Medicare for the merchandise or service that is not needed.

In addition to these, however, are the constant pleas for money to help certain organizations. From phone calls to direct mail solicitation. Before my grandmother passed away, she would pay her "bills" each month, sending hundreds of dollars to so-called charities. Similarly, telemarketers may call and offer "free trials" and urge elderly people to "act now, before the offer expires." Again, unless you know the company with whom you are dealing, just let the bogus offer expire. And never give away money for anything that is supposed to be free (i.e. shipping and handling).

Be aware of funeral and cemetery fraud, prescription drug fraud and anti-aging or health products fraud. I'll use my grandmother as an example again. For years, she invested in "Vitamin O," and took it religiously - just as religiously as the scammers took her money. Check with your physician before taking any supplements. Take a friend with you when looking into funeral home costs. And always check with the Better Business Bureau. It has information on both corporations and charities. Be safe, rather than sorry!

I love shopping on the Internet, but you should be aware that it is filled with fraudsters. You'll need to be especially careful before investing money in an opportunity that you find on the Internet.

Internet scammers are very smart. They know how to make their emails and webpages look real. A few years ago, I knew several people that got scammed by responding to a "PayPal" email, telling them that their account had been compromised. They responded and gave sensitive information to the tricksters, who then walked away with thousands.

The following are the most common types of Online scams:

Online Investment Newsletters

You'll have to separate the good from the bad here. There are hundreds of online investment newsletters that offer information about featured companies and suggested stock picks. The problem is that some people who write these newsletters work for the very companies they are recommending. They get kick-backs for stock purchases that are made. So, they are not independent or unbiased. You stand to lose the most when the newsletters spread false information or promote poorly valued stocks. By driving up the price of the stock with baseless recommendations, they then sell their own holdings at high prices with excessive profits. And you're out good cash.

Online Bulletin Boards

As with the online newsletters, online bulletin boards can also be a place for scammers. The fraudsters post on the boards, sharing investment information. Again, they'll make biased claims or use other tactics to get you to invest in a company. You cannot tell if you are dealing with an honest person or reading credible claims. Often, people can hide behind aliases. A single person can post many times as a number of different people to give the illusion that a crowd of people agrees about the value of a stock or investment

Email Spam

Its the online form of junk mail. "Spam" is used by scammers to widely distribute false information about investment opportunities, all without having to cold-call a single person. Always view these unsolicited messages suspiciously.

To avoid these types of scams, ask lots of questions and get plenty of information before investing your cash. A good resources is the SEC. Check to make sure that quarterly reports have been filed. Investigate financial statements on your own. Follow-up to make sure that suppliers and/or customers have actually done business with the company. Remember - its YOUR money!

Anyone can fall prey to scams, but not if you look at any communication you receive with a skeptical eye. Let's review other common scams:

1. Phishing. Using the Internet to coax you into giving out sensitive information through fake emails such as "PayPal," "eBay," "Citibank," or the "Internal Revenue Service." Make a phone call to the real organization to follow up, and never respond directly to an email or other alert.

2. Phone scams. When I was in college, I got a phone call congratulating me for winning a vacation to Hawaii! All I had to do was pay $100 to cover the insurance for the trip. Hmmmmm..... Other similar scams involve asking you for your mother's maiden name, or your social security number so that your prize can be sent to you. Just hang up!

3. Identify Theft scams. How ironic is this? You get a call, email or letter asking you to send in credit card numbers and other personal information to protect yourself from identity theft. And what happens then? You've been scammed.

4. Help me transfer money scam. Also known as the Nigerian Email Scam, the fraudster asks you to help them transfer money out of Nigeria (or any other foreign country). He or she offers to pay you money for your help. You send the money to the new location, and they will pay you back, plus some. It never happens. This has also taken place over eBay and other auction sites where the scammer offers to pay you more than the purchase price for the item, and you send the difference to help move money. Don't fall for it!

Become a millionaire!

Make six figures while working from home!

Fire your boss - just ask me how!

I'm sure you've seen these ads on telephone polls and posted on community bulletin boards around your town, too. Let's go over one of the basic rules about avoiding a scam - If it sounds too good to be true, it probably isn't true!

The way these scams generally work is, they require you to put money upfront (whether to buy product, listen to tapes or get other "instruction"). Then, when you start doing the work, each piece is rejected as not meeting standards, so you either don't get paid, or you spend hours and hours for less than minimum wage. I'd rather work at McDonald's!

As with other tips above, you need to thoroughly investigate the company for which you want to work. Check them out through the Better Business Bureau. If there are no records, its a big red flag. Of course, anytime you are paying someone so you can work for them should be a non-starter. Reputable companies simply do not operate that way.

We all probably know someone or even you may have been a victim of a home improvement scam or Painting scams. If you follow some of the guides above and below or from this prevention site you will prevent the likelihood of being taken. It is best to use your gut feeling.

You should be comfortable doing business with your contractor. If you think an individual or company is pushing you to work you really don't want, don’t have any remorse from respectfully declining.

Ask for recommendations and be certain that you are able directly discuss the work done directly.

Go with an established company which has trained & experienced staff like those at College Works Painting.

A surefure way to limit a scam is to have flexible payment plans. In fact, numerous states have restrictions on the deposit to be applied. In general, this amount is somewhere between 10% and 25%.

Its sad to say, but you simply cannot be too trusting when it comes to emails, telephone calls, mail and even door-to-door solicitation.  Before you part with money or personal information, investigate the person, company or charity.  If you can't find satisfactory information, that's a red flag.

No one is looking out for you, except you!  And the only person that wants to see you get rich fast is you!