What Are Some of the Most Common Free Trial Scams?

Scam 1: Subscription Traps

Subscription traps are programs or services that enroll consumers in subscription services without their explicit consent. Typically, a business will offer a free trial, but in the fine print, they will disclose that the trial will convert into a subscription unless canceled within a certain timeframe.

To avoid these scams:

• Always read the fine print carefully before signing up for a free trial.
• Keep a record of when the trial ends.
• Make sure to cancel within the given timeframe or set a reminder to ensure you’re not charged.

Scam 2: Hidden Charges

Hidden charges are fees or costs that businesses bury in the fine print, making them difficult for consumers to spot. Businesses often use sneaky tactics like offering a discounted price or free trial, only to disclose in the fine print that additional fees will be added later. In some cases, these fees can add up quickly and result in unsuspecting customers paying much more than they intended.

To avoid these scams:

• Read the fine print closely before making any purchases.
• Be wary of any deals that seem too good to be true.
• Research the company’s pricing structure in advance so you have a better understanding of the costs involved.

Scam 3: Deceptive Advertising

Deceptive advertising is the act of using misleading ads, fake endorsements, or other unethical tactics to promote a product or service. Companies will often use social media influencers or celebrities to endorse their products or create ads that make exaggerated or false claims about their offerings.

Recently, the Federal Trade Commission (FTC) cracked down on several Instagram influencers who were paid to promote a mobile banking app without disclosing their financial relationship.

To avoid these scams:

• Be skeptical of endorsements from social media influencers or celebrities.
• Do your research before making any purchases.
• Verify any claims made by the company.

Scam 4: Non-Existent Products or Services

Non-existent products or services are offerings that are advertised but don’t exist. Scammers will advertise a product or service, often at a steep discount, and then disappear once they’ve received payment.

Ticket scams are a common example of this, where scammers will advertise tickets to a popular event at a discounted price, only for the buyer to realize the tickets are fake.

To avoid these scams:

• Always research a company and read reviews before making any purchases.
• Be wary of any deals that seem too good to be true.
• Pay using a secure payment method like PayPal or a credit card that offers some form of buyer protection.

Scam 5: Unauthorized Sign-Ups

Unauthorized sign-ups occur when consumers are enrolled in programs or services without their knowledge or explicit consent. Scammers will obtain a consumer’s personal information and use it to sign them up for various services without their consent.

To avoid these scams:

• Keep a close eye on your bank statements and monitor any changes in your credit report.
• Be wary of giving out personal information to unknown sources.
• Use a strong and unique password for each of your accounts.

Conclusion

Free trials can be a great way to try out new products or services, but they also come with risks. To avoid scams, it’s important to research offers carefully, read the fine print, track trial periods, and monitor bank statements closely.

By following these tips, consumers can protect themselves from fraudulent practices and enjoy the benefits of legitimate free trials.

Remember, if a deal seems too good to be true, it probably is. Stay cautious and informed to avoid falling victim to these common scams.