When it comes to avoiding scams, most of us would rather be safe than sorry. You might not be able to prove that an investment opportunity is dangerous or predatory. But if it’s raising some red flags in your head, it’s best to steer clear, just in case.
However, sometimes people are a little too quick to label something a scam. Just because you don’t understand how it works, your great-uncle warned you that he lost money on it or you feel like you’re getting ripped off doesn’t mean that you’re actually being scammed. Redditors have recently been discussing legitimate industries, tools and services that definitely were not designed to pull a fast one on you, despite what you might have heard. So we hope you’ll learn something new from this list, and be sure to upvote the replies that you believe many people could benefit from reading!
#1
Service industry in general. I recently hired a plumber that took care of a problem in like half an hour. Yes the price was high for “only” half an hour work, but I paid for someone with the experience to diagnose the problem quickly, knowledge on how to abate the problem, and tools that I don’t have.
Same goes for good mechanics, electricians, landscapers, etc.
Image source: desde1984, Getty Images
#2
Tax brackets. People think that if they make more, they’ll be taxed more on everything they make, so they’ll actively try to make (or report making) less money to avoid “paying more”.
But those taxes only apply to new money that you make above each threshold. I’ll give an example because it can be a bit hard to explain.
Let’s say the tax bracket is 20% for above $60,000 and 30% for above $100,000, and that you make $105,000. You will only pay 30% taxes on that last $5,000. You will pay 20% taxes on the $40,000 between the 60k and 100k. You will not pay any taxes on the first 60k.
People often think that all 105k will be taxed at 30%. That’s simply not the case.
Image source: Dirty_Socks, Oleg Ivanov
#3
Hospice merely unlocks additional supplies (adult diapers, catheters, wipes, wound care supplies, etc) and services for your loved one. It’s not giving up, it’s acknowledging reality.
Image source: Damn_Dog_Inappropes, Curated Lifestyle
#4
Credit cards. They’re only a scam if you’re bad with money.
Image source: Give-Me-Plants, Avery Evans
#5
Retail price vs manufacturer cost
People get shocked to hear that revenue margin is like 10x, and think the manufacturer is a scammer. People simply don’t know what it costs to operate a business.
Image source: OvulatingScrotum, Getty Images
#6
People conflate “scam” and “bad deal” constantly.
Just because it’s a poor investment or bad deal doesn’t mean it’s a scam.
Image source: Bradparsley25, Monstera Production
#7
That when you sell something to pawn shops or used item resellers they only give you a fraction of their resale value. If you want full value for your baseball cards or gold watch, you need to sell it to someone that will keep it and not resell it.
Image source: pnkgtr, Aleksei Tertychnyi
#8
Unclaimed property letters. Don’t go through a specific company but instead file through your states department of revenue for review and claims!
Image source: finella7, Getty Images
#9
A lot of the awkward single use kitchen gadgets you see aren’t scams or waste. They actually come from the accessibility space. If there is any crossover to regular kitchens they hop over. It drives the overall price down and is ultimately a better deal for then intended audience, and a few people find a dedicated option for that one thing they maybe really suck at.
Image source: tdasnowman, Patrycja Jadach
#10
Pharmaceutical companies are not trying to keep you sick to be able to sell you more meds.
The reason for that is because *there are many pharmaceutical companies* (and even more smaller biotech companies) that are in fierce competition with each other. If company A can sell something that’s 20% better than company B’s product they aren’t going to hold it back to protect company B’s profits.
Image source: _goblinette_, Getty Images
#11
Yes, your dog groomer does have to shave your matted dog. No it does not mean we are lazy.
If i tried to brush out 2 months worth of matting in one session, it would take hours and possibly days(depending on severity) of straight brushing. It would be excruciatingly painful and your dog’s skin would be so raw they’d start to bleed from brush burn.
We aren’t lazy, we just wont hurt your dog. Even if “Fluffy’s birthday is tomorrow and he has to look good for pictures!”
Image source: Avbitten, Getty Images
#12
9/10 times your mechanic isn’t scamming you, sometimes you have to take apart near half the car just to get to 1 bolt so you can change the oil and prices reflect the additional time and labor otherwise you’re taking apart and rebuilding cars for free.
Image source: Frosty-The-Cokeman, Wesley Tingey
#13
Most government services actually work really well.
A bunch of random stuff that you want or need to do, just look up if there’s a government service that helps with it. A bunch of times there are, they are free (or very cheap), and the service you get is quite good.
Image source: OkCluejay172, Getty Images
#14
Most large charities. TLDR: Once a non-profit gets to a certain size it looks scam even when it’s doing good work.
The idea of a staff making too much or a bad spend ratio ignores a lot of reality.
Once any organization gets to a certain size, overhead becomes necessary. You eventually need an IT dept, an HR, lawyers on retainer, management, etc… all of which throw that ratio into the crapper.
For staff if you have a dozen volunteers that work for free or one paid worker with specialized knowledge of whatever the focus of the charity is, the paid worker will almost ALWAYS be more effective over the long run.
Image source: Fubai97b, Getty Images
#15
Chip bags being full of “air”. It’s actually nitrogen that’s intentionally added to the bags to keep them from getting smashed to dust among other benefits.
Image source: Alone-Breakfast3176, Willis Lam
#16
As a mechanic, Fluid changes that aren’t your normal oil change. I.E. transmission fluid and filter, differential, coolant, and brake fluid. It all needs to be changed on a regular basis, and for the same reason as oil. Now, admittedly the service writers tend to do a bad job of explaining why.
Image source: UncleGearjammer, Getty Images
#17
Pet Insurance. While there are certainly bad companies, there are good ones. We’ve saved $30,000+ over the past 7 years after accounting for the annual premiums (which we’ve seen go up and up and up recently).
Image source: IsReadingIt, JSB Co.
#18
Vaccines?
Image source: Unlikely-Ad6788, CDC
#19
Some (not all) of the online sites for glasses. I’ve spent a fraction of what I used for a single pair of glasses and got three new pair. The quality was fine, and the fit was good. As long as you use the tools offered and know your measurements you can save a ton of $$.
Image source: skulldouggary, Fellipe Ditadi
#20
Most types of insurance. Yes, whole / universal life insurance in all its permutations are scams. But many types of insurance are not.
A lot of people have trouble understanding that insurance is mostly to protect you from catastrophic loss. It is not intended that you should be making frequent claims on your car or homeowner’s insurance, though many try and conclude it’s a “scam” when their premiums go up or their coverage is cancelled.
Things like term life and long term disability insurance are coverages which you *hope* you will never need, and it might seem like a waste of money if you don’t. The proper perspective is that your premiums (after the insurer’s profit margin) go to help people who have lost a loved one, or suffered a life-changing disability. Both types of coverage can give you some serious peace of mind, which has value in and of itself.
I paid long term disability income insurance premiums for 31 years and never needed it, thank heavens. It bought a lot of peace of mind. I also paid various term life insurance premiums over my working years, several thousand dollars I estimate. Several years ago received a modest six-figure life insurance payout when my wife died of cancer, which replaced about six years’ worth of her income. It was just enough of a cushion to let me make adjustments to my expenses, and to ease into retirement. Definitely not a scam.
While we’re at it, though, all used car warranties are 110% scam.
Image source: lucky_ducker, Curated Lifestyle
#21
Universal healthcare.
Image source: LAN_Rover
#22
Science.
Image source: demonarchist
#23
Any socially beneficial aid. Social security, SNAP, universal healthcare, even Universal Basic Income has been proven to put more money into the economy than the funds dispersed, but that’s all badged as a handout for the lazy. Meanwhile there’s this dozen or so people who own just about everything and have hoarded more wealth than could be spent in a few lifetimes, that’s just sitting there providing no benefit to the public at large….
Image source: 4x4Welder
#24
Vet care. They’re not trying to scam you out of money, the exams/rechecks, tests, preventatives are necessary.
Image source: Ambitious_Public1794, Getty Images
#25
Title Insurance is a prime example of this.
Image source: gbmontgo, Getty Images
#26
MSG in food. People are terrified of it, but it’s perfectly legit.
Image source: FrameStriking9676
#27
The gym membership it only works if you actually go.
Image source: SnooKiwis3073
#28
I don’t know if it’s “most” people, but a lot of people complain when a raise or overtime pushes them into a higher tax bracket. They think they will take home less money because of the higher taxes in the new bracket.
Also, a lot of people believe that the company collecting charitable donations at their registers gets to claim the donations on their taxes.
Image source: wunderduck
#29
Overtime increases my taxes!
Image source: GoodGoodGoody, Ahmet Kurt
#30
Taxes.
Image source: texasdeathtrip, Alexander Grey
#31
College.
It’s tougher now than ever to get a job with a bachelor’s, and a lot of people take out a ton of loans to get there, so the whole deal certainly *looks* scammy.
But higher education is still an important aspect of any thriving culture, and people with college degrees, on average, still have a statistically higher standard of living later on in life than those without.
Image source: mrbaryonyx
#32
Insurance.
Its not a scam. Its a buisness. Yes. That means it exists to make money. They are very open about the methods in which they do this if you read the terms youre signing up to.
Image source: New_Line4049
#33
Vets. Healthcare is expensive for animals too and they charge so much less.
Image source: SupremeCourtRealness
#34
Working. Being productive makes society tick. It’s not some scam to make a few people rich.
Image source: otterwiseco
#35
Global warming.
Image source: l4mpSh4d3
#36
Insurance.
Image source: Queasy-Grass4126
#37
Professional cleaning services. highly recommend though I’ve had families tell me it’s a waste of money but I get home and my house is fresh and clean all the time. More time for me to just relax.
Image source: teaenthusiastpeonie
#38
Cash value life insurance exists as a way for wealthy people to help shield intergenerational wealth from taxes. Granted it often is sold to the wrong market…most don’t need it but working in the industry you see how it has wild tax advantages and how wealthy clients use it as a way to mitigate tax burdens and shield wealth from the govt. Since the benefit (but not dividends) are generally not taxed upon death. .
Image source: free_billstickers
#39
The stock market. So many idiots act like the stock market is just gambling when low-cost index funds are the greatest ticket to wealth available to you.
Just buy VOO instead of the meme stock of the day or that penny stock your buddy told you about.
Image source: srfdriver99
#40
Ranked choice voting .
Image source: raccoonportfolio
#41
I don’t like Adobe and would never give them any of my money but a lot of people complain about their cancellation fees on forums like reddit.
They charge a cancellation fee because you signed up for a longer term contract which grants you a cheaper monthly fee. If you cancel mid term they have a penalty fee because you’re breaking the contract.
If they didn’t, people could always get the longer contract for the cheaper monthly fee and then cancel whenever they were done. That would be similar to buying a mobile phone on a 2 year contract with a provider that gives you a discount in exchange for the contract. Obviously you can’t just cancel your contract after a few months and walk away with the phone at the discounted price. You will have to pay a penalty that makes up for the price of the phone.
If you want to avoid that but still need to use Adobe’s products then either make sure you will need the software for the contract term you sign up for, or avoid it entirely by paying monthly/annually (with no contract.)
If you go to their plans and pricing page it shows the pricing in very clear terms for each product. They have 3 options for Creative Cloud Pro for example: monthly (no contract), a yearly plan that is paid monthly giving you 50% off the first three months only, or just prepaying a flat rate for an entire year up front.
I’m guessing people sign up for the discounted 3 months and then think they can cancel after the discount price ends without consequence.
Image source: autobulb
#42
Credit cards. The amount of people that say “if i don’t have the money then i don’t buy the thing” but it’s like….you can use it then immediately pay it off. using them builds credit and you can even get perks with them. i was always like….you could get free money. if your card gives you even just 1% cash back you could get a free $100 from this transaction.
Image source: lysa_bul
#43
Renters insurance.
Had to involve my renter’s insurance a few years ago when my upstairs neighbors flooded their apartment. Called my insurance company and they handled everything. The only things I had to do were send in some pictures of the damage and a list of what was lost and they just handed me a check for a few grand to replace it all.
Totally worth the roughly $110/year that it costs.
Image source: bbbbbthatsfivebees, djme_322
#44
Restaurant prices in high COL areas. People look at a menu and think “I could make that $16 burger for $3 at home.”
You’re not paying for the burger. You’re paying for the staff, the rent, the utilities, the cleaning, the build-out, the maintenance, the linen service, the insurance, etc etc.
In a city like SF or NYC, if menu prices went up with the COL so that back of house actually got paid true living wages, that burger should be more like $30.
And for owners, it’s typically a really bad deal. Restaurant owners generally make little to no money for a job that requires virtually constantly being on-call for when the toilet backs up or the fridge goes down or a line cook doesn’t show up. A 2-3% margin would be considered a decent profit. I’ve known many restaurant owners who work for years and end up with nothing to show for it.
Image source: J_Kenji_Lopez-Alt, Daniel
#45
Planet Money on NPR did an interesting episode about those “Chinese pharmacy” emails that are very common spam everyone gets. They actually went to the website and ordered something and I think even had it tested once it delivered, and lo and behold, it was the actual meds they ordered. I’m probably miss-remembering some of the episode, but the gist of it was, those emails are not in fact a scam.
Image source: hugcub
#46
Condo fees. The condo corp and builder aren’t profiting off them or scamming you. They go to actual stuff that needs to be done, and that would need to be done if you had a freehold house. Some condos are badly managed of course, so have fees higher than they should be, but that doesn’t make condo fees a “scam”.
Image source: snow_big_deal
#47
No interest promotions. Not a scam, lady. You just didn’t listen to the disclosure which explained how it works.
Image source: Ok-Bus1716
#48
Casinos. The odds on the table games are known, you know exactly what you’re getting yourself into.
Image source: duuchu
#49
Social safety nets, i.e. social security. It’s not an entitlement if I’ve paid into it my entire working life.
Image source: pnwtwinmom
#50
Promotional financing.
Image source: WithBongInHand
#51
Life insurance, disability insurance, reverse mortgages, and annuities. They have a (somewhat deserved) bad rep because people sell them for high commissions to people who don’t need them, when in reality they’re extremely useful tools for the right circumstances.
Image source: PursuitTravel
#52
Using a licensed Public Adjuster to re-evaluate or re-appraise an insurance claim if/when your insurance doesn’t offer enough to cover damages. Especially on something like home owners insurance for weather damage or storm damage.
(This is gonna get buried, but I did search the thread to confirm no one else has said this yet.)
The field is clouded with roofers and stuff that are just there to Hoover up insurance money after a storm, and some of those are kinda scammy, especially when they’re not partnered with an adjuster.
Using a qualified third party adjuster is kinda like hiring your own defense attorney to negotiate for you, instead of relying on the prosecution’s attorney to handle your needs and rights as a defendant. It shouldn’t have to be adversarial line that, but the insurance company and the policy holders (you) have fundamentally opposite incentives: pay out as little as possible, vs pay out as much as possible.
It’s like hiring your own Mr Incredible to help with “penetrating the bureaucracy!!” and navigating the tangled walls of fine print that they build around themselves.
(Note: I am not a public adjuster, though I have a family member who is, and I’ve seen the licensing exam material and procedures that go into this.).
Image source: LegoRobinHood
#53
Climate change. It’s not a scam at all. It’s one of three ways we’re on track to make humanity extinct. Nuclear war and misaligned ASI are the other two.
Image source: rosstafarien
#54
Healing. Everyone wants a quick fix, but real healing takes time, patience, and a lot of quiet courage.
It’s not a scam just because it doesn’t happen overnight. some pain needs time to understand before it fades.
Image source: sri_346
#55
Attending Therapy.
Image source: Telandria
#56
I’ve heard lots of people moan about how mortgages ‘put all the interest at the start of the loan, so you pay that off first’. No. That’s juts how debt works. The amount of interest you owe per year of holding someone else’s money is larger while you hold more of that money. The repayment schedule is calculated to meet the interest obligation while paying off some of the loan, all at a fixed monthly payment.
Image source: ClimbNowAndAgain
#57
This might be controversial but: wedding pricing for many sectors of the industry.
People think we hike our prices because we can and we are getting rich for minimum effort. They think we are scamming people. While there are bad actors out there (make sure you read thoroughly before you sign a contract), it could not be less true for the vast majority of creative wedding professionals.
Most people have just never planned a party for a hundred or more people and don’t realize how much things cost at scale.
We are almost all small business owners who often make less than minimum wage given the number of hours we work, the entitlement and demands we face from couples and their families, and the timelines we are up against to deliver perfection.
When it seems like the cost goes up just because it’s a “wedding” there’s almost always a legit reason. Wedding events require way more labor than regular services, the pressure of perfection for vendors means we have to plan for every contingency and that costs money (for backups, extra materials and staff). People also almost always want things tailored and customized and don’t realize how much extra labor that is and yet still want things delivered at the same time.
Weddings increase liability too, there’s a much higher chance you’ll be dealing with intoxicated people who might burn your wedding barn down.
It all costs money.
I make wedding invitations for a living and while I love my job, even working in the luxury segment of the wedding industry where clients are spending around to $50k on wedding paper – the actual profit I make from the custom work is way less than I would if I were to go be a teacher. I have to subsidize my income with digital sales, font design and other services outside of weddings.
Most of the income is eaten up by paying my staff a living wage, luxury printing method costs like brass plates, press materials and paper, taxes, and the tools I need to create it all. The amount of time it takes to create and the pressure to deliver on time all while the clientele is pushing every boundary you’ve set is bananas.
It’s a rough job that looks pretty on the outside but is crazy stressful and not particularly lucrative on the inside. You get one shot to do it right.
We aren’t trying to scam you – folks just don’t realize how much money it costs me to hand foil your 200 menus or prepare dinner for all your cousins and your dad’s secretaries best friend.
That being said – while I work in the luxury wedding industry, I was a DIY bride when I got married. It gave me an appreciation for how much labor it takes to make it “pretty”.
I love that I get to be creative for a living and that weddings provide an avenue for that but weddings should always be about your commitment and love for your partner first and making it aesthetically pleasing second or third. It’s never worth it to go into debt for your wedding. If you can afford it, great. If you can’t, I promise you, spend your money on the things that are most important to you and don’t sweat the rest.
Image source: SaintMaloBell
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