The Rise Of Subscription Scams: What To Watch Out For

Free Trials That Cost You Money:

Many scammers use fake free trials to trick people into paying monthly fees. They offer products like weight loss pills, skin creams, or streaming services for just shipping costs. 

Once you give them your credit card information, they start charging your account every month. The fine print often hides these charges in tiny text that most people never read.

How Phone Bills Become Targets:

Your phone bill can become a playground for scammers through something called cramming. Dishonest companies add charges for services you never ordered, like horoscopes, ringtones, or dating services. 

These charges appear as small amounts on your monthly bill, hoping you won't notice. Many people pay these bills without checking each line item carefully.

Gym And Service Memberships Gone Wrong:

Some businesses make it nearly impossible to cancel memberships once you sign up. They require you to visit in person, send certified mail, or call during specific hours when no one answers. 

Door-to-door salespeople often use high-pressure tactics to get you to sign contracts for services like pest control or home security systems with automatic renewals.

Online Shopping Traps:

Websites sometimes add subscription services to your purchase without making it clear. You might buy a single item and unknowingly sign up for monthly deliveries or membership programs. 

Pop-up ads and pre-checked boxes during checkout can trick you into agreeing to ongoing charges. Always read the entire checkout page before entering your payment information.

Warning Signs To Watch For:

Be careful when companies ask for your credit card for identity verification or shipping on free items. Real free trials don't need your full credit card number. 

Watch out for websites that don't clearly show their cancellation policy or contact information. If the deal seems too good to be true, it probably involves some kind of catch or hidden cost.

Check Your Bank Statements Monthly:

Review your credit card and bank statements every month for charges you don't recognize. Small amounts under five dollars are common because scammers hope you won't notice them. 

Set up account alerts on your phone to notify you of any new charges. This helps you catch fraudulent activity quickly.

Taking Action Against Unauthorized Charges:

Contact your bank or credit card company immediately if you find suspicious charges. Most financial institutions will reverse fraudulent charges and issue you a new card. 

You can also file complaints with the Federal Trade Commission and your state's attorney general office. Keep records of all communication with companies and financial institutions.

Your Best Defense Against These Money Drains:

The most effective protection is staying alert and reading everything before you agree to any purchase. Use prepaid cards for online shopping as an option when possible, and never give out your Social Security number unless absolutely necessary. 

Trust your instincts - if something feels wrong about a deal or sales pitch, walk away and research the company online first.

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