Protecting Yourself from Scam Artists

Part 1: Red Flags

There's no shortage of unscrupulous conmen out there looking to make a quick buck. From Email scams to pyramid schemes, there's a con for every occasion! While it's impossible to completely shield one's self from deceitful individuals, short of moving to a deserted island, there are some simple steps that can help to weed out all but the most determined and expert of charlatans.

Looking back at my own ordeal over the past couple of years, there were many signs that could have warned me that trouble was afoot, if I had known what to look for. Here are some tell-tale signs that the person you are dealing with may be duplicitous.

Beware of Acquaintances and Extended Family Members

There's an expression that goes "never do business with family and friends". I wish that I'd heard it a few yeas ago! There's a reason they say that. Money problems can ruin friendships and cause irreparable strain to family relationships. For that reason alone, it's best to steer clear of people who are close to you. I used to think that it was a good way to get cheap deals, but the fact is that they are thinking the exact same thing. In other words, it equals out! You'll likely gain nothing, and either of you may have unrealistic expectations of the other.

Extended family members like cousins and in-laws often don't have the same strong bonds as the nuclear family, but they are still family. You may not care if you alienate a distant family member, but someone closer to you might! In my case, the offender was my brother-in-common-law, a would-be financial planner. I made the fatal mistake of assuming that we would take good care of my finances because of the family connection. When his fledgling Pyramid Scheme business ran into trouble (as they all do!), he used his access to my private financial information to woo me into non-existent investments. In reality, the money went into his failing business!

The Person or Company is Approaching You