It’s really scary how easy it is to get personal information from people. The Federal Trade Commission reports that hundreds of thousands of people from all over the country are victims of frauds and scams every year.

Identity Theft

Topping the list is identity theft, which continues to ruin thousands of lives. There are many ways for criminals to steal your identity, and all are devastating to you.

For example, you may receive an e-mail that contains a link to an official-looking Web site, usually impersonating your bank, the IRS, eBay, etc. You’ll then be asked to enter information such as a credit card number or a Social Security number — everything a thief needs to take over almost every aspect of your life.

Stealing someone’s identity is a very subtle process. Once you let your guard down, before you even know it, you have taken the bait and are trapped.

International Finance Scams

Foreign money offers are another scam, usually originating from places like Russia or Nigeria. An e-mail message is sent, asking you to help charitable organizations move large sums of money out of their country due to corrupt governments or legal issues. They ask to transfer the money into your account and, in return, you get a percentage of the deposit.

Once you give them access to your account, it doesn’t take long for the scam artists to take everything you have. This scam works so well because it supports the victim’s feeling of desperation and the need for the next get-rich-quick scheme.

Lottery Scams

Lottery scams target those who have the fantasy of finally hitting the jackpot. You get a phone call or e-mail that you’ve won a jackpot lottery — but a small processing fee is required in order to wire the prize money to you, so your checking account number is needed. That’s when the trap slams shut. Before you realize it, your account has been cleaned out.

I get calls from people all the time who are victims of these kinds of frauds and scams. Sometimes it happens because people just don’t know about the latest threats. So get educated. There ARE protections out there for you and your family; you just have to take the initiative to find them. Ducking your head in the sand and pretending that nothing is going to happen to you is how to get burned by these crooks.

Most important, NEVER give your personal information out to anyone. You also need to realize the importance of getting control of your money. The more secure you feel with your day-to-day finances, the less likely you’ll be to get lured in by these life-altering frauds and scams. Remember, if it sounds too good to be true, it usually is.

__________________

Dave Ramsey’s financial advice appears every week in Quick & Simple. He is the host of the nationally syndicated radio program The Dave Ramsey Show and best-selling author of The Total Money Makeover and Financial Peace Revisited.