Over the years, scammers and fraudsters have come up with more and
more inventive ways to swindle us out of our hard-earned cash.

And unfortunately, when times get tough, more of us become
susceptible to these cunning schemes.

So I've decided it's time to give you the run-down on ten of the
worst scams to watch out for so that you can avoid being ripped off!

1) Phishing emails

The trap: Emails which appear to have been sent from your
bank and ask you to reset or confirm your security details by clicking
on a link.

The reality: More often than not, these links take you to a
fake website with the aim of getting hold of your personal or financial
details to defraud you. So whatever you do, don't click on these links
and delete the email immediately.

For more advice, visit the Bank Safe Online website.

2) Bogus holiday clubs

The trap: You're approached by a scratch card tout or receive
a phone call telling you you've won a 'free' holiday. All you need to do
is to attend a presentation to collect your prize.

The reality: At the presentation, you'll be persuaded to
sign up to an exclusive club and pay a fee for the privilege. But you'll
probably find you've bought little more than access to an internet
booking service offering the same service you could find in your local
travel agent. Read Hidden holiday costs for more advice.

3) Emails from 'friends in need'

The trap: You receive an email from a friend claiming he has
lost his wallet and passport abroad and desperately needs money to pay
for his hotel bill and his flight home.

Often your friend will tell you all phone lines have been
disconnected and the only method of contact available is email. He'll
then ask you to wire over some money to help him out, making out this
will be repaid upon his return.

The reality: The email is not from your friend, but from a
scammer who will happily run off with your hard-earned cash and perhaps
even ask for more. Remember- this actually happened to two Governement ministers: Jack Straw and David Milliband!

4) Lotteries

The trap: You receive a letter or email to say you've won a
large sum of money in a lottery. Terrific! however, when you phone up to claim, you'll be told you need to pay a fee to collect your winnings.

The reality: Hand over the fee and you'll never see your
money again - or your prize. It is illegal for a real lottery to charge
any sort of fee so if you're told you need to pay,�keep well away. Remember - if you haven't bought a ticket, how can you have won a prize?

5) Weight loss aids

The trap: Advertisements promising you'll be able to lose
weight with minimal effort thanks to the wonders of a revolutionary
pill, patch or cream.

The reality: Usually there's no scientific evidence to back
up these claims, and you'll end up spending money on a bogus drug that
will make absolutely no difference to your weight.

6) Advance fee fraud (the Nigerian or 419 scam)

The trap: You receive an email or letter from what appears
to be businessmen or officials from Nigeria or another African country
offering to transfer large sums of money into your bank account to get
it out of the country. You're told you can keep a large chunk of this
cash, but need to pay a fee to cover the transaction costs and legal
fees.

The reality: These emails/letters are from conmen who will
simply disappear with any money you give them. What's more, because
you'll have to hand over your personal and bank details, you can expect
these crooks to empty your bank account while they're at it.

7) Work at home schemes

The trap: You see an advert in the newspaper or on a
lamppost offering you a significant income for minimal work - such as
envelope stuffing or craft assembly work.

The reality: What you won't be told is that you might have
to pay up front for supplies to carry out the job or to cover hidden
costs. You may also find your 'employer' refuses to pay you, claiming
your work isn't up the right standards, or that you only get commission
for signing up more people.

8. Car matching

The trap: After placing an advertisement for your car in the
newspaper or online, you receive a call from someone promising to match
you with a buyer. You're then asked to pay a fee for the match - often
around £80-£99.

The reality: The call was from a fraudster, there's no buyer
and you can kiss goodbye to your cash.

9) Mobile phone insurance

The trap: Not long after buying a new mobile phone, you
receive a call from the shop you bought it from, and are offered a
fantastic insurance deal.

The reality: After handing over your bank details you
discover your mobile phone isn't insured after all and the person on the
phone wasn't who he said he was. By which point, your bank account is
looking decidedly less healthy.

10) Pyramid schemes

The trap: You pay a fee to join a scheme but are offered the
opportunity to make bags full of money fast by simply recruiting other
people into the scheme.

The reality: These schemes are illegal and although the
people at the top of the 'pyramid' might make money, it won't be much.
And as soon as the pyramid stops growing, there's no money to be made.

Finally...

There are many more rip-offs and swindles out there, but
unfortunately I don't have room to list them all. But hopefully the
above ten give you some idea of what to look out for.

For further tips and advice, you can read this guide from Consumer Direct. And if you come across any scams, you can report them via the Consumer Direct website.

Remember, if it sounds too good to be true, it probably is.