How to Protect Yourself From Financial Scams
In an era of instant transfers and digital storefronts, financial scams have only increased. Scammers today don’t just steal your data; they can also manipulate your emotions. Here are some signs that a scam is on the horizon.
Implied Urgency
Scammers love to make you act quickly.
- “Act Now!” So-called “limited-time” investment opportunities are intended to pressure you to act before you can think.
- “Immediate Transfer Required.” If an email or text says that you must transfer funds immediately, be very wary.
Red Flag. Legitimate companies give you time to review and make decisions. Scammers want you to panic.
Unexpected Contact
Be cautious of messages or calls you didn’t expect. Scammers often pretend to be:
- Banks
- Government agencies
- Delivery services
- Tech support
Red Flag. They rely on surprise to catch you off guard and create urgency.
How to Protect Yourself
- Don’t click links in unexpected messages.
- Contact the company directly using a verified number or website.
Odd Payments
If a company requests a payment method out of the norm, be wary.
- Any legitimate company will never ask for payment via:
- Gift cards
- Wire transfers
- Cryptocurrency
Red flag. These payment methods are hard to trace and nearly impossible to recover once sent. If someone is asking for payment via these methods, move on.
Too Good to Be True
Outrageous claims, unprecedented return on investment, or huge upside with no risk are just a few things to look out for.
- Things that are “guaranteed” or “zero risk” are rarely that.
- If a deal seems too good to be true, that’s because it is.
Red Flag. Every “real” investment involves some level of risk. Guarantees are a common scammer tactic to lower your guard.
Slightly “Off” Communication
Scam messages often look almost real—but not quite. Watch for the following:
- Misspelled words
- Awkward phrasing
- Email addresses that don’t match the company
- Links that look suspicious
Red Flag. Many scams rely on imitation, but small details give them away.
What to Do If Things Don’t Feel Right
If you’re unsure, take the following precautions:
- Pause before taking action.
- Verify the source independently.
- Talk it over with someone you trust.
Even a short delay can prevent a costly mistake.
Do One Thing: Be mindful of scam warning signs so that you don’t get fooled.
Original article by Chris O'Shea and adapted in partnership with SavvyMoney.