In the wake of the 2008 financial crisis, scam artists have started ghost-savings schemes to swindle Americans. These companies cloak as a legitimate association or cooperative and entice low-income earners with promises of massive returns. The scammers use the fear of missing payments and a panicked consumer to their advantage. They demand a large membership fee and are happy to collect a portion of their money in advance.
To avoid becoming a victim of a savings scam, it is important to keep your account well-organized and monitored. You should always call the Securities Division if you see any unusual activity. The Lending Standards Board monitors CRM, and must consider the persuasiveness of such offers. However, even the most seasoned customer can be fooled by a convincing scam. Therefore, it is imperative to follow the rules set by the Board to avoid falling victim to the practice.
Another common savings scam involves the pretending to be a charity or a non-profit organization, which is a scam. These organizations will ask for a person’s bank account number, as the recipient will have to wire the money in order to collect the money. Unfortunately, most victims are unable to pay the money back, and they have to pay the fees again. To prevent this from happening, be alert and take action right away.