Save your money: Avoid doing business with these scam companies.
Business scams cost Americans $8.8 billion in 2022, with a 30% increase in business and investment fraud since 2021. With 5.1 million fraud reports filed last year alone, learning to identify industry-specific tactics that target vulnerable consumers has never been more important.
Update May 13th—I received a voicemail message today explaining the reason for the denial; HOWEVER, they were making an exception and that I would receive a refund in 10-15 business days. I will update again at that time.
NEVER PURCHASE TRAVEL INSURANCE FROM THEM.
I purchased travel insurance through Generali Global Assistance, and when I had to cancel, for health reasons, they denied the claim. The claim filing required a substantial amount of documentation but for 2K, it was worth it.
I finished filing the claim on March 8th--2 weeks before the scheduled trip. I received an email on April 4th stating that my claim was CLOSED due to not submitting the requested information within 20 days. I never received notice, so I called to inquire about the requested information and was told the claim was updated on the portal. I checked the portal and provided information.
April 14th, I received an email requesting for more information, which I provided.
On April 23rd, I received an email that the claim was denied and that I would receive an explanation letter shortly.
After checking spam/junk folders, I called to inquire about the explanation letter on May 8th. The rep stated that she could see the denial but there was no explanation and, since no one was available, she would have someone call within 24 hours. Today is May 10th--no call or email communication.
SAVE YOUR MONEY--DON'T PURCHASE TRAVEL INSURANCE FROM THEM.
Legitimate businesses have verifiable physical locations, licensing, and credentials. If you can't confirm basic business information, proceed with extreme caution.
Pressure Tactics
Scammers create artificial urgency demanding immediate payment or decision-making to prevent you from researching or thinking clearly.
Unusual Payment Methods
Requests for wire transfers, gift cards, cryptocurrency or other difficult-to-trace payment methods are major warning signs of fraudulent activity.
Guaranteed Returns
Promises of guaranteed profits or unrealistic outcomes with no risk are classic signs of investment scams.
Common Business Scam Types to Watch For
Advance Fee Fraud
$321M lost in 2022
Fake Investments
Average loss $18,700 per victim
Tech Support Scams
2.7M reports, targeting seniors
Business Opportunities
Bogus franchises & MLMs
Government Impersonation
$509M stolen through fake agencies
How to Research Companies Before Doing Business
Essential Verification Tools
Secretary of State business registrations
BBB company profiles and complaint history
FTC Consumer Sentinel Network
Industry-specific licensing databases
Interpreting BBB Ratings
Check complaint resolution patterns
Look beyond the letter grade
Verify actual business responses
Check accreditation status and length
Evaluating Online Reviews
Look for verified purchase indicators
Check review patterns and timestamps
Search for review manipulation signs
Check multiple review platforms
Legal Protections and Reporting Mechanisms
File FTC Complaint
Submit detailed information about the scam to the Federal Trade Commission at ReportFraud.ftc.gov, including all communications and transaction details.
Contact State Agencies
Report to your state's Attorney General office and consumer protection division, which often have stronger enforcement powers for local businesses.
Dispute Transactions
Initiate credit card chargebacks within 60 days for fraudulent transactions. Document all communication with the company showing attempted resolution.
Consider Legal Action
Join existing class action lawsuits or consult with consumer protection attorneys about individual claims for significant losses.
Recovery Steps: What To Do If You've Been Scammed
Immediate Action (0-48 Hours)
Contact financial institutions to freeze accounts
Change all passwords and enable 2FA
File police report for documentation
Place initial fraud alert with credit bureaus
Documentation (Week 1)
Gather all communications with scammer
Document transaction records and receipts
Screenshot websites before they disappear
Create chronological timeline of events
Protection (Weeks 1-2)
Set up credit monitoring service
Review credit reports for unauthorized activity
Secure identity documents and personal information
Register with identity theft protection services
Recovery (Ongoing)
Follow up with all agencies and reports
Seek counseling for emotional impact
Join support groups for scam survivors
Share experience to help prevent future scams
Stay Informed: Building Your Scam Defense System
Set Up Alerts
Configure credit monitoring alerts, bank notifications, and Google alerts for company names to catch potential threats early.
Continuous Education
Stay updated on the latest scam tactics through FTC Consumer Alerts, AARP Fraud Watch, and industry-specific resources.
Join Communities
Participate in r/Scams on Reddit, BBB Scam Tracker networks, and local consumer protection groups to share intelligence.
Spread Awareness
Protect others by sharing scam warnings with friends and family, especially those most vulnerable to targeted schemes.