Scam of the day – August 28, 2015 – Money flipping scam

Social media is suddenly being flooded with advertisements for money flipping opportunities.  In one version of the scam being found on Instagram, there is a photograph of someone folding a pile of money with text that says that it is easy to “flip” a couple of hundred dollars to as much as thousands of dollars and then gives you contact information in order to take part in this great opportunity.  Once contacted the scammer then instructs the victim to provide their debit card and PIN to the scammer in order to be able to deposit a check into your account.  The scammer then tells you that he or she will deposit a check into your account and then withdraw the money shortly thereafter.  You then get paid for allowing the scammer to use your account in this manner.  The problem is that the check the scammer deposits into your account is counterfeit, but the money withdrawn from your account in the amount of the counterfeit check is not so you lose money from your account.

TIPS

Certainly everyone wants, as Dire Straits sang years ago, “money for nothing,” however, you should always be skeptical of anyone proposing a scheme that appears to offer that kind of reward.  What possible legitimate reason could there be for a stranger to need to use your bank account to cash a check?  This is an obvious scam and one that should be avoided.   You also should never consider giving your debit card and PIN to a stranger or even a friend for that matter.

Scam of the day – September 24, 2014 – Money flipping scam

An old scam with a new twist is appearing lately on social media such as Twitter, Facebook, Craigslist and Instagram where an advertisement promises you that through a simple money flipping scheme that takes advantage of quirks in the monetary system, your investment of, for example $100 can quickly be turned into $1,000 by “flipping” and leveraging the money.  In case you need further convincing, the ads often have photographs of happy investors and testimonials about how easy it is.  This is the same type of ploy used by Charles Ponzi, the Godfather of today’s scammers including the infamous Bernie Madoff.  How the scheme works is that all you have to do is to purchase a prepaid debit card and put, for example $100 on the card.  You then provide your card number and PIN from the card to the scammer who promptly steals your money and is never heard from again.  Money lost through prepaid debit cards is impossible to recover which is why they are a payment method of choice of scam artists.

TIPS

Of course, if it sounds too good to be true, it usually is and this money flipping scam is no exception to this rule.  Another important rule in investing is to never invest in anything that you do not totally understand.  Anyone researching this scam would soon learn that it is nothing more than an impossible investment scam.  Finally, always be skeptical if anyone wants you to pay with a prepaid debit card.  Sometimes the arrangement may indeed be legitimate, but it should always put you on guard.