What is Scam? How many types of Scams and how to protect myself from these scams 2024?
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| What is Scam and how to protect? |
For the last few days, a controversy is going on between two big motivational speakers Sandeep Maheshwari and Vivek Bindra regarding business scam. So in today's article I will tell you what is a business scam? And how does a business convert into a business scam?
What is Business Scam?
So see, the main motive of any business is to earn profit and for this the businessman sells his product to the customer and earns profit from it. This method is legal and it is not necessary to sell products only, sometimes you can also earn profit by providing services like providing education, providing healthcare, consulting services, legal services, financial services.
But the most important thing in this is customer satisfaction. That means the product or services we have taken are useful for us. Is it possible that the product was sold to you by telling you something else but after purchase the product was not given to you? If such a case comes then it is a business scam i.e. products and services were sold to you but by giving wrong information.
Like you must have heard in many advertisements that you invest Rs 10,000 in our place and within one to two months you will start earning Rs 100,000. But this is completely a scam. There is no shortcut to earn money. If you want to earn money then you need to work hard for it and you have to learn as many skills as possible so that you can make yourself better than others in today's time.
And when you have skills, any company will definitely give you a job. But for this you first have to protect yourself from all these scams. So the biggest question is that how can you avoid all this? Before knowing this, you will have to know how many types of scams there are.
Although there are so many types of scams that you cannot even imagine, but according to the method of scam, they can be divided into three categories -
Types of Scams
First – Investment scams
Second - Identity theft scams
And third – Other common scams
So now let us quickly know all these in details -
Investment Scams
First - Investment scams, this scam happens when a person starts trying too hard to get you to invest money. In such cases, scammers lie to you and give you wrong information about investment. There are mainly 3 types of this type of scam –
Ponzi schemes - In which scammers take money from new investors and give it to new investors due to which people's trust is built. After this, when the scammers have a lot of money, then the scammers run away.
Pump-and-dump schemes - In this scheme, investors get trapped in false publicity and start buying shares. They think they are getting good profits but as soon as the share price rises, the operators sell the stock. And they run away, causing investors to lose their money.
Advance fee scams - Such scams in which you are charged a fee for a product or service in advance but that product or service does not reach you. Examples of this are – Fake job offers and work from home jobs.
Identity Theft Scam
So let us now know the second type which is Identity Theft Scam – So this is a crime where scammers use the personal information of a person without his permission. The information may include the user's name, identification number, or credit card number. Scammers then use that information to commit fraud or other frauds.
In this also scam is done in three ways -
Phishing scams - In which scammers fraud people through email and website and extract their personal information. In this, the main target of scammers is to steal sensitive information of the user like ATM PIN, CREDIT CARD NUMBER.
Skimming scams - In which fraudulers install scanners on ATMs and Gas Stations to know the user's debit and credit card numbers.
Social engineering scams - In this scam, scammers first get close to the users to gain their trust and then they steal the user's sensitive information like ATM PIN, CREDIT & DEBIT CARD NUMBER.
Other Common Scams
After this comes the third category of Other Common Scams which covers all the other scams apart from these. Now you will see 4 types of scams in this common category -
Pyramid schemes and MLM schemes - In this scam, fraudulers promise you that you invest money in us and within a few days we will make you a millionaire and in this you just have to add people under you. For this, a lot of money is charged from the users and in this, the person sitting at the top benefits the most and the people at the bottom suffer the loss.
Fake business directories - In this scam, Fraudsters send a business form to small businessmen through email or fax which offers free listing of their small business in business directories. And they say that although you will have to pay a huge amount for listing, but we will do this work for you in a few rupees and after filling the form, they charge them as their fees and then disappear.
Unsolicited goods scams - In which a product or goods are sent to your home and you are told that you had ordered that product and you have to pay for it.
Tech support scams - In this, Fraudsters in the form of a Tech support talk to you and take access to your computer, after which they extract your personal information from there.
So these were the categories of scams. And if you want to avoid all these scams, then it is important for you to do all this:
1. Inquire thoroughly about the business.
2. Read reviews and ask people
3. Check license and registration.
4. Know about business owners.
Apart from this, if you want, you can also take help of these websites to understand the scam.
Federal Trade Commission (FTC): https://www.ftc.gov/
Better Business Bureau (BBB): https://www.bbb.org/search
AARP Fraud Watch Network: https://www.aarp.org/money/scams-fraud/
So in this way you can protect yourself from scams.
Now talking about Vivek Bindra's scam, first of all we have to know whether Vivek Bindra has really committed a scam. So as he says, he started his business only to teach business skills to businessmen. For this he created IBC (Independent Business Consultant) which will teach business skills to people.
But as those two people who came to Sandeep Maheshwari's show said that they were being taught not about business but how to sell this business to other people so that other people can purchase the course in the name of business with their money. Their commission should be made and if there is truth in what these boys say then it is completely a scam and such scam is called MLM Scam or Pyramid Scam.
So if seen from this perspective then Vivek Bindra's company is wrong here which is taking money from poor people in the name of business consultancy but instead of teaching them about business, they are teaching them that if you want to earn money then you Stick this business and the logo.
And if only a few people are involved in this then Vivek Bindra will have to take a big action against these people and will have to refund the money of all those people with whom this scam has happened.
So for today I just hope that you found the article informative and if you liked the article then you must send this article to each of your friends. So see you soon with another new article, till then Good Bye and Happy New Year.
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