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Sean Cate
Sean Cate
October 10, 2024 ·  5 min read

8 Scams That Are Hard To Spot

In today’s fast-paced, digital world, scams have evolved to become increasingly sophisticated and harder to recognize. Scammers are constantly adapting, exploiting everyday situations to deceive even the most vigilant individuals. Below are eight scams that may seem harmless or even legitimate but are cleverly designed to separate you from your money.

College Education

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The belief that a college degree is essential for success is deeply ingrained in society, but the value of that degree is often overestimated. In the U.S., student loans amount to over $1.7 trillion, and 52% of graduates are working in jobs that don’t even require a degree.1 This raises the question: Is college always worth the cost?

The problem stems from a government system established in the 1960s, which guaranteed student loans, allowing young adults to take on massive debt often without fully understanding the long-term impact. The pressure to attend college can lead many into crippling debt that may not even benefit their career trajectory. Before enrolling, it’s essential to weigh the benefits of a degree against the financial burden it could impose for years to come.

Read More: 45 Poor People Who Ran Out of Luck

Payday Loans

A bunch of American $20 bills
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Payday loans are notorious for trapping people in cycles of debt. These short-term loans are marketed as quick fixes for financial emergencies, but their astronomical interest rates make repayment difficult for those already struggling. Some states are finally cracking down on payday loan providers due to the predatory nature of their business.

People who are living paycheck to paycheck are often the most vulnerable, and payday lenders take advantage of that desperation. With interest rates that can exceed 400%, it’s easy to see how borrowers quickly fall into a debt spiral that becomes nearly impossible to escape.

Tax Filing Services

Store to have your taxes done
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In many countries, filing taxes is a straightforward process managed by the government, but in the U.S., taxpayers collectively spend over $100 billion just to file their returns. The complex nature of the tax code seems designed to push people toward paid services, which might just be another way of squeezing money from consumers.

Companies that provide tax filing services profit off the confusion surrounding tax laws, and they aren’t incentivized to simplify the process. Meanwhile, countries like the UK offer return-free filing, where citizens don’t need to file their taxes manually. This stark contrast highlights how American taxpayers might be falling prey to an overly complex and costly system.

Buy Now, Pay Later (BNPL)

person paying at the store
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Buy Now, Pay Later services have surged in popularity, offering consumers a seemingly convenient way to spread out payments. However, the ease of purchasing now and paying later can lead to financial trouble. Small, manageable payments can accumulate quickly, pushing users into debt before they realize it.

This service is marketed as a responsible alternative to traditional credit, but it often lures consumers into spending more than they can afford. The hidden fees and interest that accompany missed payments can be steep, creating a vicious cycle of debt that may last for years.

Read More: My Husband Demands to Co-Own the House Purchased With MY Money

Identity Theft

computer hacker in the dark
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Identity theft is one of the most devastating scams because it can go undetected for months or even years. Scammers use various tactics to steal personal information, including phishing emails, malware, and even digging through physical trash bins. Once they have enough details, they can open accounts, apply for loans, and even commit tax fraud in your name.2

A key way to protect yourself is by being cautious with your personal information. Avoid giving out details over the phone or via email, and always ensure the websites you’re using are secure. Identity theft can wreak havoc on your finances, and recovery can be both time-consuming and costly.

Unpaid Internships

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Unpaid internships have long been seen as a way for students to gain valuable work experience, but they often exploit young people who can’t afford to work for free. These internships disproportionately benefit students from wealthier backgrounds, who can afford to forgo wages, while others miss out on resume-building opportunities because they need paid work.

The promise of future job opportunities is often used as a justification for this unpaid labor, but the reality is that many unpaid internships do not lead to permanent employment. In some cases, they are just a way for companies to get free labor under the guise of “experience.”

Subscription Scams

Disney+ Subscription service
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Subscription scams are rampant, particularly those offering “free trials” for products like supplements, health foods, or beauty products. Once you sign up and provide your credit card information, canceling the subscription becomes nearly impossible. Many victims find themselves locked into monthly payments for products they didn’t want and can’t seem to escape.

These scams are often hard to spot because the trial seems legitimate at first glance. Always check reviews and read the fine print before committing to any “free” offer. It’s easy to get trapped in a cycle of unauthorized payments if you’re not careful.

Romance Scams

A love note saying "he loves me" and "he loves me not"
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Romance scams exploit people’s emotions, often through online dating platforms. Scammers create fake profiles to lure victims into relationships, eventually convincing them to send money for fabricated emergencies. The Royal Canadian Mounted Police reported that more than $22.5 million was lost to romance scams in Canada alone in 2018, surpassing other types of fraud.

These scams are hard to detect because they prey on loneliness and emotional vulnerability. Scammers will often build trust over weeks or months before asking for money. Be wary of anyone who asks for financial help, especially if you’ve never met them in person.

Conclusion

person fishing for money online
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Scams have evolved far beyond the typical email from a “Nigerian prince.” Today, they range from complex financial traps to subtle subscription tricks. By staying informed and cautious, you can avoid falling victim to these schemes. Remember, if something seems too good to be true, it probably is.

Read More: 9 Things That Shock People About Americans & America

Sources

  1. 8 Common Scams That You Don’t Even Know Are Scams.” The Simplify Daily. Gabe Bult
  2. 13 Common Scams and Tips to Help You Stay Ahead of Them.” Everything Zoomer. Andrew Wright. March 12, 2020.