Even the most trusting among us understand that people who are trying to sell us something may not be completely honest. But it still seems like for every scam uncovered and prosecuted, several more are hatched and sprung on unsuspecting consumers.

Still, understanding why we tend to buy into scams may help us avoid them in the future. Here are a few ideas about what happens to allow bad deals to go through (and how we can prevent ourselves from being duped).

Limited Math Skills

In one study conducted by the U.S. Department of Labor, researchers reportedly found that fewer than half (about 42 percent) of Americans questioned were able to add two prices together and calculate a 10 percent tip.

And if we aren’t doing well on smaller problems like this, chances are we aren’t scoring too high on the more complicated math required to figure out a mortgage or a car loan. So how can you prevent getting duped by a savvy number cruncher?

• Do your homework. No, you don’t have to crack open an algebra text, but before putting yourself in a high-stress purchasing situation (like signing a car loan), take time at home to figure out what you can afford (in total, not per month). If you’re well prepared, you may not feel as much pressure to accept a higher price.
• Enlist a friend. If you know someone who’s good with numbers, ask for help when you need it. If you feel uncomfortable seeking assistance from a friend, consider visiting a professional credit counselor or financial adviser. Investing a little money for a consultation could save you big money down the road.

Expectations of Honesty

Unfortunately, assuming a seller is going to be honest and aboveboard in financial transactions can raise your odds of getting scammed. The sad truth is that some people will try to deceive you and take your money.

Keep a few important points in mind when dealing with smooth salespeople:

Additional Resources

Consumer Protection Booklet (PDF)

Personal Bankruptcy Information