The world of personal finances can be a confusing and sometimes scary place.

There's a lot you have to know and watch out for so that you don't get taken advantage of.

Hi, I'm Nico Gargiulo.

And today on Adulting, we're talking about scams.

[music playing] Scams seem like they're everywhere these days.

We get texts and emails with fraudulent links, phantom phone calls, and sometimes, we even get scammed in person.

There's a lot we have to watch out for, but not all scams are as obvious as you might think.

[music playing] There are two major categories of scams that we need to be on the lookout for.

First, there are the illegal kind.

Most of us have some kind of experience with these.

We've all received suspicious texts, emails, or phone calls trying to find out our personal information in order to illegally access our money or various accounts.

The second kind are known as predatory scams.

These are usually legal, but can often be just as deceptive and financially devastating as illegal scams.

[music playing] Illegal scams can take many forms, but their intent is often the same-- to get your personal information in order to access your credit information or steal your money.

This personal information can include things like your social security number, credit card number, or your address.

Most legitimate companies will never ask you for your account information, so if you receive a text, email, or call asking for login or other personal information, there's a good chance it's a scam.

Rental scams are also on the rise and often target young people.

If you're renting an apartment or other place to live, always be sure you actually see and tour the apartment before signing anything.

The best course is often to play it safe.

If you're unsure if something is legitimate, reach out to the company directly and confirm it's really them contacting you.

If it's not, you just avoided being scammed.

[music playing] In some ways, predatory scams can be even more difficult to spot than illegal ones.

These can include being encouraged to overborrow on a loan.

If you are considering a loan, for example, for school or to purchase a car, be sure you are only getting the amount that you actually need.

Remember, you'll be expected to pay back everything you borrowed with interest.

Meaning in the long run, you will pay back more money than you actually borrowed.

Lenders will sometimes try to encourage you to take out more money than you were initially looking for.

This is a practice called overborrowing, and means you will be in debt longer and pay more money in interest.

Be aware of this and only borrow what you need.

[music playing] If you're considering getting a credit card, be sure you understand all the terms you're agreeing to.

Most credit cards will have a minimum monthly payment, so be sure you know what this is and that it's an amount that you will be able to handle.

Perhaps the most important thing to consider when getting a credit card is the APR, or Annual Percentage Rate.

This is essentially the interest rate you will pay on any credit card balance you do not pay off at the end of the month.

What is considered an average APR can vary greatly over time, so do some research and be sure that the APR the credit card company is offering you is on par with the average national rate.

Also, be sure your rate will not change over time.

Sometimes, credit card companies will offer low introductory rates that will increase significantly after the first few months.

This can be a red flag.

If you are considering a credit card with a variable APR, be sure you know what the new rate will be and when the rate will change.

[music playing] There are many ways to protect yourself from potential scams.

Always keep your account information private.

If you think one of your accounts has been hacked or the information has been compromised, change your password.

Never share your personal information.

If someone is asking for your birth certificate, social security number, or account numbers, it could be a scam.

Someone's asking for any of this information, be sure you know exactly who they are and exactly why they need the information.

Keep a close eye on your finances.

Track how much you are making and how much you are spending.

Don't overborrow and don't allow yourself to accumulate more credit card debt than you're able to pay off.

[music playing] We've talked about a lot, so let's recap.

First, always be on the lookout for scams.

If something feels suspicious, there's a good chance it's a scam.

Second, always understand the terms of any loan or credit agreement you are entering into.

Be sure you can pay back what you are borrowing.

Third, guard your personal and account information.

Don't share it unless you know exactly who you are giving it to.

And last, always keep close track of all your finances.

You'll be much harder to scam if you know exactly what your financial situation really looks like.

I'm Nico Gargiulo, and thanks for joining us on this episode of Adulting.

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