The concept of free trials has been around since the early days of marketing as we know it, but is now usually associated with software products.On paper, free trials sound great. Who wouldn't want to test a product for free before buying it? In reality, many free trial offers are just gimmicks, if not outright scams.

How Free Trial Scams Work

Most streaming platforms, antivirus providers, e-commerce sites, and software companies offer free trials. Food delivery services, news outlets, online magazines, and many other businesses do the same. These are usually advertised as no-obligation offers, with the customer being asked to sign up with their credit card number to begin the trial.

If you like the product or service after the trial period has ended, you agree to being charged recurring fees. And if not, at least you gave it a shot. Sounds reasonable. But, in most cases, it's not that simple.

For example, user experience designer Harry Brignull demonstrated in 2022 how difficult it is to unsubscribe from The New York Times. In a video, Bringull showed that it takes around eight minutes to unsubscribe from the paper, and that a customer needs to go back and forth with the support team to cancel their subscription. In contrast, signing up usually takes just a couple of minutes.

If one of the most widely-read media outlets in the world engages in such behavior, what should one expect from lesser known companies?

You don't need a researcher or activist to tell you how this works. If you've ever signed up for a free trial, you know the pattern: opting in is incredibly easy, and doesn't take more than a few clicks of the mouse. Opting out is an entirely different story; it's like navigating through a maze. Half an hour later, you're still not sure whether you've actually managed to unsubscribe, because there's a good chance you failed to tick the right box, or misread one of the 12 convoluted instructions.

This is all by design. In their effort to convert potential into paying customers, many companies nowadays go over the fine line that separates aggressive marketing tactics and unethical business practices. And some shady entities take things one step further, outright scamming people out of their hard-earned money.

In fact, these scams have become so widespread that that regulatory agencies around the world are looking to crack down on them. In the United States, the Federal Trade Commission (FTC) issued a special report in September 2022, warning that an increasing number of companies in the country are using sophisticated design tricks and "psychological tactics" to mislead their customers.

How to Avoid a Free Trial Scam: 5 Things to Remember

Graphic illustration of a shield symbolizing security next to a credit card

Because free trials and subscription offers are everywhere, being able to distinguish a legitimate one from a scam is very important. But how does one do that? It's not that difficult if you keep the following five things in mind.

1. Research the Offer

If a free trial offer sounds too good to be true, it probably is—and you're likely not the first person interested in it. Look for customer reviews online, and comb through social media sites like Twitter and Reddit to see if the trial is really a scam. Also consider researching the company behind it, even if it seems perfectly legitimate.

2. Read the Fine Print

It's boring and tedious, but you should always read the fine print carefully before entering your credit card information and signing up for an offer. For example, some companies have certain checkboxes marked by default, because they count on the customer clicking "next" or "proceed" without paying close attention. Others use asterisks instead of unambiguously stating their disclaimers, which they write in small fonts and hide at the bottom of the page.

3. Keep Track of the Trial Period

Even if you're dealing with a reputable company that isn't trying to scam you, you shouldn't expect a reminder to cancel your free trial, so remember to do it on time. If you're worried about it slipping your mind, set a reminder. There's an easy way to do this on the Windows operating system, but you can also set a reminder on your phone.

4. Monitor Your Billing Statements

If you need to share credit card details to get a free trial, you're likely dealing with a company that plans to automatically enroll you in some kind of subscription program after the trial period has ended. This is why you should monitor your billing statements, and watch for any unexpected charges.

5. Use a Virtual Credit Card

Lastly, you should consider using a virtual credit card for free trials and similar online purchases. Unlike physical cards, virtual credit cards are temporary—they're usually designed for one-day, or one-time use. If you use one to obtain a free trial, it will expire before the end of the trial period, and you'll have nothing to worry about. And if you're not able to get a virtual credit card for some reason, prepaid cards are also a good option.

In conclusion, as long as you do your research, read the fine print carefully, and use common sense, you'll most likely be okay.

And if you happen to fall for a free trial scam, there are still things you can do to protect yourself. If you're dealing with a legitimate organization, contact customer support directly and ask for a cancelation. If not, you can call your bank, explain what happened, and ask for a charge reversal.

Some Free Trials Come With a Price

Not all free trial offers are scams, but enough of them are to have an impact on both consumers and legitimate businesses. Until regulatory bodies move to eradicate them, do what you can to protect yourself.

As is the case with most cyber threats, awareness and education are key. Knowing how to spot a free trial scam is a necessary skill, but it will only get you so far if you don't take other precautions.