You know what they say: "If it's too good to be true, it probably is." And yet, dozens of people fall for scams that promise them the moon - and they don't realize they've been played until it's too late.
The Federal Trade Commission (FTC) is warning of an uptick in free trial scams. The scams come in several shapes and sizes, but most will look something like this:
You see an ad from Netflix or a cosmetic company saying you've been granted a temporary subscription to their service or product. They say it's absolutely free. The only catch? There is none. They say that, anyway. That is until you're asked to pay for hidden fees in addition to shipping and handling at a time when it's too late to back out. Or, you might be asked to share all of your financial information even though you're officially not obligated to pay anything.
In one such scam, a company aggressively advertised "free trials" for skin care products, dietary supplements and e-cigarettes on various popular websites. The lucky consumer would only need to cover the cost of shipping and handling and the product would be delivered - absolutely free!
Of course, the product wasn't free and the unlucky victims paid close to $100 in fees before the first shipment was sent out. Worse yet, they were charged this same fee each month for the next year, with no way to back out of their contract until the 12 months were up.
In another scam with a similar setup, consumers were asked to share payment information for the $1.03 to cover shipping and handling for the "free" products. After their order was placed, another screen with a "Complete Checkout" button appeared. Shoppers who clicked that button unwittingly agreed to pay for monthly shipments of the product to the tune of $94.31 each month. And when that button was clicked, yet another "Complete Checkout" button appeared.
Again, those who clicked this button were subjected to a $94.31 charge each month. Consumers who'd taken the bait twice ended up with a total monthly charge of $188.62 - plus shipping.
In a third "free trial" scam, shoppers were lured into signing up for a 12-month trial subscription to a popular service, like Netflix, absolutely free. Unfortunately, the company advertising for the free trial wasn't Netflix at all; it was a group of scammers. Victims were redirected to a new webpage where they were asked to share their sensitive information to qualify for the trial.
You can probably guess the ending: The scammer made off with the consumer's information and emptied their accounts, went on a wild shopping spree or stole their identity.
Don't let this happen to you! Here's how to steer clear of free trial scams:
Read the fine print and only sign up for free trials that won't cost you more than you bargained for or put you at risk for identity theft.