Dear Users,

Acquaintance scam refers to a fraudulent scheme where scammers exploit the trust and friendship of their victims for monetary gain. Scammers typically use tactics such as borrowing money, promoting investment or insurance plan, or recruiting for multi-level marketing schemes. This guide will outline common types of acquaintance scams and offer tips on how to identify and avoid them.
  

1. Four Common Types of Acquaintance Scams

1) Money Borrowing Scam
Scammers pretend to be in an emergency, such as being in need to pay medical bills, having bank account issues, or need money urgently. They promise to repay the loan later. However, once they receive the money, they either disappear or request more money, coming up with new excuses for why they cannot repay the initial loan.

2) Fake Charity Donation Scams
Scammers pose as charitable organizations or individuals in need, fabricating stories to solicit donations. Their stories often relate to recent disasters to evoke sympathy and exploit the victim's goodwill.

3) Fake Insurance Plans
Scammers build a friendship with the victim and then recommend an insurance plan that supposedly offers high returns or special benefits. In reality, these plans are traps designed to steal the victim's money.

4) Multi-Level Marketing (MLM) Schemes
MLM schemes rely on recruiting people to earn profits for those at the top. They often boasts about recruits making large sums of money quickly. In reality, most recruits struggle to cover their initial investments.
  

2. How to Identify and Avoid Acquaintance Scams

1) Think Twice Before Lending Money
Always evaluate requests for money thoroughly and consider the borrower's reasons and ability to repay. Use a legally binding contract to document the loan details for protection in case of disputes. If you decide to lend money, only lend an amount you can afford to lose.

2) Donate Only to Legitimate Charities
Verify the charity's legitimacy before donating. Avoid donating through private messages or social media; it's best to donate through the official channel of a charity organization.

3) Be Wary of Insurance Plans That Seem Too Good to Be True
Be skeptical of insurance policies offering unusually high returns or low premiums. Compare plans from trusted local insurance companies and research their background and reputation. Consult a professional insurance broker or financial advisor if needed.

4) Avoid Being Coerced into Multi-Level Marketing (MLM) Schemes
It's a red flag when a program focuses more on recruiting new members than on the product or service. Research any opportunity thoroughly and don't join an MLM scheme just because a friend recommended it.
   

3. What to Do if You Encounter an Acquaintance Scam

1. Keep Calm and Alert Others
Don't let your emotions take over. Inform your friends and family immediately to prevent them from being deceived.

2. Disable Accounts and Try to Minimize Losses
If you’ve provided personal information to the scammer, freeze any related financial or bank accounts immediately and change your passwords.

3. Contact the Platform for Assistance
If your financial accounts or personal information have been accessed by scammers and there is a risk of funds being stolen, contact the customer support of the financial platform immediately. Report the situation, provide necessary information and seek their assistance.

4. Collect Evidence and Seek Legal Assistance
Keep records of chat logs, loan agreements, payment receipts and other relevant documents. These pieces of evidence are crucial for reporting to the police or seeking legal assistance. If the loss is substantial or you cannot resolve the issue on your own, consider hiring a lawyer for professional advice and support.