Everyone likes getting free stuff. But sometimes, criminals use the promise of “free” to trick people into signing up for trials of things they don’t actually want or need. Before you know it, you’re stuck with products you didn’t ask for and keep getting charged for them.
These scams often target older people who might not realize they’re being charged for things they didn’t want. Here’s what you should know about free trial scams and how to keep yourself safe.
What Is a Free Trial Scam and How Does It Work?
In a “free trial” scam, you’re promised something for free. But once you agree to the trial, the scammers enroll you in a weekly or monthly club or subscription without your permission. They offer various products like:
- Streaming services
- Books
- CDs
- Magazines
- Movies
- Cosmetics
- Undergarments
Sometimes, when you accept a free gift, you’re also signing up for a club that sends you more products. You’ll keep getting billed until you cancel, or you might be signed up for a subscription that renews automatically each year.
For instance, a company got into trouble with the Federal Trade Commission (FTC) for $74.5 million. They were accused of offering a free trial for cosmetics and dietary supplements, but then they signed people up for subscriptions without their permission.
Who Are the Victims of Free Trial Offer Scams?
Although anyone can be tricked by these scams, older people tend to be targeted more often. The Consumer Financial Protection Bureau (CFPB) says that banks reported over $6 billion in suspected fraud losses in a five-year period. According to the CFPB, people aged 70 to 79 lost an average of $45,300 because of financial fraud.
Fraudsters often target Boomers for several reasons:
- Many Boomers aren’t tech-savvy, so they might not check their accounts online and stick to paper statements.
- Some Boomers may have memory problems or other issues with thinking.
- They might not have someone watching over their finances.
- Scammers like targeting Boomers because they often have steady incomes.
How Scammers Use Social Media to Carry Out This Scam
Some free trial scams are spread through social media, texts, and other mobile apps. For instance, The U.S. Sun found that a common scam offered “free trials” of Netflix through hundreds of thousands of social media, text, and WhatsApp messages.
These messages claimed to offer three months of free Netflix due to the coronavirus pandemic. It’s thought that if people click on the link in the message, scammers can hack into their phones and steal personal information.
What Is Law Enforcement Doing to Combat This Fraud?
Law enforcement agencies are getting more and more complaints about financial scams targeting seniors and free trial offers. From 2015 to 2017, complaints to the FTC doubled.
In just 14 resolved cases, victims lost $1.3 billion. The latest data from the FBI’s Internet Crime Complaint Center shows nearly 2,500 complaints about free trial offers, with losses totaling over $5.6 million.
National and international law enforcement agencies have issued warnings about these offers and are asking the public to report fake products to them. Some states have even passed laws to stop auto-renewals.
How You Can Protect Yourself from Free Trial Scams
To prevent falling victim to a senior financial scam, take action before it happens. Here’s what you can do:
Avoid Free Offers
The well-known saying goes: “There’s no such thing as a free lunch.” Even though the free offer might seem tempting, it often comes with conditions that are more valuable than the “free” item you were given.
Research the Company
If you’re thinking about doing business or taking the free product, do some thorough research on the company online. If you find stories from customers about being charged without their permission, it’s best to steer clear of these offers.
Read the Fine Print
Make sure you understand all the terms and conditions of any free trials. Know how to cancel, when you’ll be billed, and how much time you have to reject products.
Look for Pre-Checked Boxes
Some online offers may have a box checked automatically. If you don’t uncheck it, the company can keep sending you products and billing you.
Enroll in Online Banking
Sign up for online banking to avoid waiting more than 30 days to see your credit or debit card statement. With online banking, you can check your account quickly to spot any charges for subscriptions or memberships you didn’t want.
Set Up Account Alerts
Take it a step further by setting up automatic alerts on your account. These alerts will notify you whenever you’re charged for something.
Don’t Click on Links
If you get an email offer from someone you don’t know or even from a friend, be cautious about clicking on any links in the email. It could be a phishing scam. These emails might have links that contain viruses that can harm your device, or they could lead you to a fake website where your personal information might be stolen.
Wrapping Up
Understanding these free trial scams and what could make you or someone you care about at risk is the initial step in safeguarding yourself online. The tactics mentioned earlier can assist you in steering clear of these scams and retaining your money for your own use.
