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“People Just Don’t Understand”: 43 Things People Think Are Scams But They Are Not
Interview
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!
This post may include affiliate links.
#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.
Ge Po 3 weeks ago
That, and people don't always realise it takes time and money to drive to your house, or to the store to refill on materials and tools, the handy worker has to pay for insurance, a car, a place to keep his gear, and for courses to keep up to date on new procedures and stuff. And then there's taxes. It is not only that half hour. All these other costs are calculated through the hourly rate.
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#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.
#3
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....
SnifflyMango04 3 weeks ago
I've never understood how this doesn't make sense to some people. Healthy people, who don't have to focus on merely surviving every day, but who have decent housing, food, clothes and education, make for productive members of society. It's so simple!
To find out how this conversation started in the first place, we got in touch with Reddit user AmigoDelDiabla. They were kind enough to have a chat with Bored Panda and explain what inspired this post.
"I frequently see comments on Reddit that label things as 'scams' when they're really not," the author says. "A scam is something fraudulent, deceitful, or involving intentional misrepresentation. Paying more for something than you think you should is not a 'scam.' A lot of times, it simply seems rooted in misunderstanding or a lack of familiarity. So I wanted to hear specific examples from the Reddit-verse."
#4
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!"
#5
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.
Child of the Stars 3 weeks ago
Hospice care was a complete blessing for my mom with my grandfather (her dad). She was his primary caregiver for years before he was put on hospice; it was a tremendous relief.
#6
Universal healthcare.
Zig Zag Wanderer 3 weeks ago
How could this ever be considered a scam, except by extremely foolish people?
We also asked the author what they thought of the replies to their post. "I think almost all the things listed are legitimate. The stock market is not a scam. Insurance is not a scam. The fees charged by utilities for delivery services are not a scam," they shared.
"The tax brackets one surprised me. I didn't really think people didn't understand marginal tax rates," AmigoDelDiabla continued. "It is most definitely NOT a scam, but I don't know anyone who actually thinks it is. The response about single-use gadgets in the kitchen was enlightening. I never thought of them as a scam, but I didn't realize they were designed for people with physical disabilities."
#7
Social safety nets, i.e. social security. It’s not an entitlement if I’ve paid into it my entire working life.
nottheactualphoto 3 weeks ago
It most certainly is an entitlement, in the sense that you actually are entitled to it. Modern internet usage has warped the meaning of the word: "Karen is entitled" actually means that Karen acts as though she were entitled to a discount. I've paid into Social Security for decades, and I *am* entitled to collect benefits. That's the entire purpose of the program. Up will I shut, now.
#8
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.
#9
People conflate “scam” and “bad deal” constantly.
Just because it’s a poor investment or bad deal doesn’t mean it’s a scam.
#10
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.
Laserleader 3 weeks ago (edited)
Yeah, p**n shops are businesses. Why would they ever pay retail to anyone? If you want full value you have to sell it to the buyer directly.
#11
Credit cards. They're only a scam if you're bad with money.
Dusty's mom 3 weeks ago
Don't use credit cards for more than you can pay off in a month. That's what we've been doing for years, and we have a credit rating in the top bracket. No, we're not rich. We're not even middle class. We're between upper poor and lower middle, but this works for us. It can be done.
#13
Vet care. They’re not trying to scam you out of money, the exams/rechecks, tests, preventatives are necessary.
Day Andie 3 weeks ago
Most vets care. Big corporations that are buying up vet practices are pushing the higher prices that would actually keep the little vets in business. They are also scamming people and shaming them into purchasing very expensive procedures that are unnecessary or that may not even work.
#14
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 $$.
#15
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.
Nils Skirnir 3 weeks ago
In the US at least, privatization generally leads to higher costs and lower quality.
#16
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.
SchadenFreudian Psychology 3 weeks ago
The kinds of insurance that OP mentioned are not a scam. In the U.S., health insurance is 100% a scam.
#17
Unclaimed property letters. Don't go through a specific company but instead file through your states department of revenue for review and claims!
#19
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.
#20
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.
#21
Science.
SchadenFreudian Psychology 3 weeks ago
I hate living in this timeline. The world needs a second Age of Enlightenment.
#22
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.
ॐBoyGanesh 3 weeks ago
Breville has taken too much of my money because this is absolutely true.
#23
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.
Nils Skirnir 3 weeks ago
Boy folks would’ve failed marketing 101. Price points are set at what the market will bear, not at cost + a reasonable profit. Pricing is a strategic decision that is based only partially on what an item or service costs to produce.
#24
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).
sturmwesen 3 weeks ago
insure young and read your policy with a fine toothed comb. If you have a unhealthy breed it will be expensive surely - because your over/undersized, squichy faced, bug eyed, hip damaged or water headed pup will probably face recurring issues. We have a top notch surgery insurance for about 450€ a year (latest increase due to hitting the 6 year bench) for our mutt.
#25
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.
#26
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.
#27
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.
#28
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.
Binky Melnik 3 weeks ago
“misaligned ASI”? What the hell is that? It’s gonna k**l me and google doesnt show ANYTHING for it!
#30
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.
Jack 3 weeks ago
I worked in marketing for an agency that worked exclusively with pharma. One of the things you don't know is that pharma companies have a LOT of corporate espionage. If AstraZeneca is making a new d**g, you can bet PFizer already knows about it. That's another reason why "they're hiding the cures!" doesn't make sense. You'd have to pay off your competitors not to squeal.
#31
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.
#32
Ranked choice voting .
Jeremy James 3 weeks ago
Yes, please. We need that desperately over here. This past decade could have been far less shambolic.
#33
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.
JK 3 weeks ago
Ahem - Oxfam. Whilst there are many *good* charities, there are some that are terrible. Anyone remember when thay big scoop hit the headlines because Oxfam's higher ups were using company funds to travel to poor countries and using the same company expense funds to pay for s3x with children? Probably not, because it was in the papers for like ONE day and then vanished from public media.
#34
Title Insurance is a prime example of this.
nottheactualphoto 3 weeks ago
Not many people will realize a benefit from title insurance, but if you need it it's a life saver. Wait, that's just like any insurance.
#35
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.
#37
Casinos. The odds on the table games are known, you know exactly what you’re getting yourself into.
Jeremy James 3 weeks ago
I lived in Vegas for a while. If you find a video poker machine with the right pay scale, and you learn a few simple rules for playing the game correctly, (like not holding for an inside straight,) your expected return can get pretty close to 100%, which means you should come close to breaking even over a long period of time. I've walked into casinos with my last $5 and walked out with rent for the month. And if you're going out for a drink anyway, you might as well put $20 into the poker machine at the bar. Your first drink will be free, so just play the cost of your drink and cash out. Worst case scenario, you just paid for your drink. Or you might drink free, or even leave with extra cash. I once won $800 and a cool jacket just for having a drink with my coworkers.
#38
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.
#39
Overtime increases my taxes!
#40
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.
#41
Working. Being productive makes society tick. It’s not some scam to make a few people rich.
#42
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.).
#44
Taxes.
Science Nerd 3 weeks ago
Certainly a scam. We can do without roads, schools, first responders, social safety nets, national defense.
#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.
Zig Zag Wanderer 3 weeks ago
I've had plenty of meds from mainly India which were absolutely fine. I mean, patents were probably infringed, but I got the goods!
#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".
#49
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. .
#50
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.
#51
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.
#52
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.
#53
No interest promotions. Not a scam, lady. You just didn't listen to the disclosure which explained how it works.
#54
Insurance.
SchadenFreudian Psychology 3 weeks ago
Mostly health insurance in the U.S. Other kinds of insurance usually are not a scam.
#55
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.
#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.
Zig Zag Wanderer 3 weeks ago
Mortgages are probably the best investment out there. You get to use the product while paying it off. A mate wants to pay off his mortgage instead of putting money into his pension. The mortgage payments aren't high, and his pension would make at least twice the %age, totally tax free. Mortgages are also the cheapest way to borrow money!
#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.
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