Scammers are getting better at duping people out of their hard-earned money, so it's important to be on your guard. One increasingly common way that fraudsters deceive their victims is through free trials.
Sometimes, the culprits are full-fledged crooks. In other cases, they are legitimate companies with sneaky marketing practices that can prove costly to you.
Here are the steps you can take to protect your financial fitness and avoid free trial scams.
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Search for the company name and the word 'scam'
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Those who have been scammed often try to warn others of the offending company's antics. So, run an internet search for the name of the company you are signing up with and add the word "scam."
A quick check on Reddit or a look at the company's Google reviews should also give you a sense of the company's reputation.
Make sure a real company is offering the free trial
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Legitimate businesses usually have a physical address, phone number, and other indicators that they are a real business selling real products.
If you can't find this basic information after a few minutes of internet research, give the free trial a pass.
Beware of outsized promises or urgent time frames
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You've heard these marketing gimmicks before: "Act now before we sell out!" Or, "Lose 30 pounds in one month!"
If the advertisements play on your emotions, this should raise a red flag that a possible scam is afoot.
Borrow up to $50k to finally crush your debt
If you have thousands in debt and you’re barely making it paycheck to paycheck, you know how suffocating it is. Debt is always on your mind. It controls your life. And even if you make on-time payments, they’re so expensive that you have nothing left over.
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Be wary of offers through social media
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Hackers get into social media accounts every day. These crooks can take advantage of your trusted relationships by pretending to be a friend or acquaintance so they can con you.
If a "friend" uses social media to alert you about a new free trial offer, proceed with caution.
Look for information about how to cancel the free trial
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Before you sign up for a free trial, make sure you understand when and how to cancel.
Most companies offering legitimate free trials will give you this information. So, be wary of any company that doesn't make its cancellation method obvious.
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Set an alarm on your phone the day before the trial ends
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Plenty of subscription services count on you forgetting to cancel before the free trial ends. While this isn't technically a scam, it does increase the risk of you losing money you never intended to spend.
Make sure that this doesn't happen to you. Set a reminder a day or two before your free trial ends so you remember to cancel it.
Check your bank and credit card statements
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Keeping close tabs on bank and credit card accounts is good practice for your finances in general, but it is especially important to do this if you are worried about scams.
Keeping a close tab on your accounts can help you detect suspicious charges.
Guard your personal info
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If you plan to participate in free trials, consider using a junk email address or a prepaid credit card when signing up.
Doing so shields you from the worst damage that thieves can inflict.
Contest the charge with your credit card company
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If you fall victim to a free trial scam, dispute the charge with your credit card company. In many cases, the company will investigate the situation and reverse the charges.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1 <p>See website for details.</p>
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Report scams to the FTC
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Finally, if you are the victim of a scam, do your best to prevent others from suffering the same fate.
Alert the Federal Trade Commission (FTC) about any deceptive or unfair marketing practices. You can report scams at the ReportFraud.ftc.gov web page.
Bottom line
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Offering a free trial is a common and legitimate marketing practice for companies from Netflix to Apple and Amazon. That said, sneaky marketing tactics and straight-up theft can occur if you're not careful.
Whenever you sign up for a free trial of anything, do your research to make sure you know what you are getting into. Also, make sure you know how to terminate the free trial so you don't get any unpleasant surprises.
Being alert is the best way to keep more money in your bank account instead of putting it into the pockets of scammers.
Lucrative, Flat-Rate Cash Rewards
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.24%, 24.24%, or 29.24% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
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