On this episode of Financially Naked: Stories from The Financial Gym, hosts Garrett and Gina, two Certified Financial Trainers, dive into the world of financial scams. They explore common scams, how scammers prey on emotions, and provide practical tips on how you can protect yourself and your loved ones. They highlight the importance of staying informed and prepared to safeguard your finances in a constantly changing world.

Podcast Notes

Common Financial Scams

Online Marketplace Scams: Platforms like Facebook Marketplace are common targets for scams. Sellers might ask for a deposit and then vanish, while buyers may send an excess payment through a payment app and later request a refund. One way to avoid this issue is by paying in cash if possible!
Phishing Scams: These scams often come in emails or texts, such as fake payment confirmations or undelivered package notifications. These are designed to provoke an emotional response and get you to click on malicious links. Never click on a link from an unfamiliar sender.
Job Scams: The job market is tough, so fake job postings lure in applicants by promising employment, only to steal personal information during the "onboarding" process. It's very common for people to apply for dozens of jobs, and finally getting a response can be exciting, making these scams extra nefarious.
Impersonation Scams: These types of scams have evolved over time. Somebody will contact you and say they are in a bad situation and need money ASAP. They used to pose as strangers, but now they can pose as members of your family or friends over the phone using AI.

Emotional Manipulation in Scams

Preying on Emotions: Scammers aim to lower your guard by exploiting emotions like excitement, fear, or urgency. When emotions are heightened, it can be hard to pause and think about if the situation is legitimate or not.
The Rug Pull: Whether it's an NFT investment or a fake job offer, scammers use the initial excitement and hope to pull you into their schemes, only to leave you empty-handed when the truth comes out. They sometimes disappear completely, giving you no way to trace who was behind the scam.
Scams in a Digital World: Technology is constantly evolving, and scammers are usually close behind. Now more than ever, we use our phones and technology to take care of everyday tasks, which makes it easy for scammers to use that same technology, like QR codes or fake payment requests.
Impact on Trust: Scams erode trust, especially when they target well-meaning individuals who are simply trying to help or participate in what seems like a good cause.

Protecting Yourself and Loved Ones

Monitoring Accounts: Regularly check your bank accounts for unfamiliar charges and use two-factor authentication (2FA) to add an extra layer of security. If you get an email about a payment confirmation, but no money has left your account, you know you don't have to worry.
Educating Your Circle: Everyone can be a victim of a scam, and there should be no shame around this subject. Talk about scams with your friends and family, particularly the older generation, who may be more vulnerable. If you encounter a scam, tell your circle and help raise awareness.
Stay Calm and Verify: If you receive suspicious messages or emails, don't click on any links. Instead, verify the information directly with your bank or the company. If someone calls, you can always hang up and call the company's number and ask them if they reached out to you.
Family Safety Measures: Establish a family code phrase for emergencies to guard against AI-driven voice scams. This simple action can help ensure that loved ones don't fall prey to these increasingly sophisticated scams where people call and pretend to be a loved one, asking for financial help.

If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.

Resources

Meet The Trainers

Meet Garrett Faulconer, Certified Financial Trainer
Meet Gina Funaro, Certified Financial Trainer

How to Spot Financial Scams with Garrett & Gina