These Financial “Experts” Got Fooled, so You Can Too (Really)

When you hear the sad story of a scam victim, it’s easy to think: how the hell did they fall for it ? Because, of course , you are too smart to be fooled. And sure, maybe you wouldn’t, say, put $50,000 in a shoebox and give it to a stranger (if you even have $50,000 to put in a shoebox). But no matter how smart you think you are , there is someone out there creating a scheme that can exploit your own vulnerabilities.

You know how sophisticated and sophisticated scams are these days. You know that scams cost victims time, money, and personal information and can make them feel like complete losers . However, most of us fail to fully appreciate the fact that no one is actually immune from fraud. Let’s look at how someone can become a victim of a scam, and the steps you can take to protect yourself from becoming a victim.

Anyone can cheat

The Cut’s financial advice columnist Charlotte Coles was criticized on social media for her painful essay in which she admitted to handing over the aforementioned $50,000 to a scammer; in the essay, she lists all the reasons she considered herself above being a victim, including the fact that she wrote a lot about fraud in her work. However, she is deceived by an elaborate scheme involving fake CIA agents and a shoebox full of money. Perhaps Coles’ story sounds so exaggerated that you’re sure you wouldn’t fall victim to it. Fair enough, but even fraud does not contain such obvious clues. Author and culture commentator Cory Doctorow also recently wrote about being a victim of con artists , despite having researched and written a novel about con culture . In his case, the fraud required only his inattention as he thoughtlessly told the supposed fraud prevention agent the last seven digits of his credit card, rather than just the last four.

In both cases, fraud “experts”—one of whom, like me, was a finance writer—fell for the bait. Many have spoken out on social media, chalking up Coles’ story in part to arrogance: the expert had become too cocky; the rest of us can’t afford to be outsmarted on that scale. Unfortunately, the irony here is that dismissing someone else’s sacrifice as arrogance is your own arrogance .

“None of us are immune to scams, and just when you think you’re too smart? That’s when you’re most vulnerable,” says financial therapist Lindsey Bryan-Podvin. She points out that younger generations in particular believe that because they grew up technologically literate, they have a certain savvy that will protect them from being scammed. Here’s the thing: scammers have grown up to be just as (and likely more) technologically savvy. Bryan-Podvin emphasizes the speed and ingenuity of modern scams. “They are constantly evolving,” she says. “Once you recognize the red flags of one scam, they move on to the next.”

Each of us has our own weaknesses that scammers can take advantage of if they catch us at the right moment. You may be stressed or distracted and your internal alarm won’t go off until it’s too late. For example, in the article “Cut,” Coles describes how her child was used as a pawn in a scheme; The scammers led her to believe that following their instructions, including keeping everything a secret, was all that could protect her family. Whether you fall for this particular ploy or not, it’s understandable that the desire to protect your child can crowd out rational thinking and cloud your judgment on the wrong day.

The stakes don’t always have to be as world-changing; scammers are just as happy to charge you $50 as they are to charge you $50,000. For Lifehacker associate editor Joel Cunningham, the scam came in the form of a used couch that, simply put, he really wanted. (Lightly used West Elm!) He sent the Cragslist seller $50 as collateral with the intention of coming and seeing him in person the next day; when he looked up the intersections at the address he was given, he discovered that they didn’t actually intersect and the number he was texting was no longer in service.

This is all to say that it doesn’t matter how book or street smart you are. Within each of us there is a certain threshold of susceptibility: we are simply waiting for the right scammer to come along and take advantage of a momentary error in judgment. You may not believe that Amazon can forward your call to an FTC agent, but you may not notice that the “fraud alert” from your bank was actually a phishing attempt.

How to protect yourself from fraud

Bryan-Podvin says we can use stories like today’s viral nightmare as “a test for ourselves: What is your individual tipping point?” You may never respond to unknown numbers, but you are more likely to respond to an email that looks like it came from your child’s teacher, for example.

Here are some tips to protect your weak points.

Slow down

We’ve got a complete guide to preventing online scams , with tips like never giving out personal passwords and never clicking on links in random emails. But the best way to avoid scams is to keep one guiding rule in mind: whether it’s job postings , product offers, a hot Russian woman who wants to be your wife, or, yes, a ridiculously cheap West Elm sofa: if it sounds too good, what is it? true, that’s true .

Slow down and do your research before sending money anywhere. Check for red flags such as typos, strange email addresses, or aggressive sales techniques. Fraudsters hope to create a false sense of urgency.

Say it loud

When Bryan-Podvin works with clients who have been scammed, most of them report feeling isolated, she says. Everyone is eagerly awaiting the article in The Cut this week, but at least Coles overcame her shame and shared the story. Typically, this shame causes people to keep their stories to themselves , promoting the dangerous idea that one can be too smart to be fooled.

The simplest and most important advice is to call someone you trust. Before you do anything, especially before sending money or personal information, voice the situation out loud. (Notably, the scammers in the Coles case explicitly forbade her from talking to anyone, including her husband, and it’s clear why. As Brian-Podvin explains, talking through him does two things at once: you’ll get help from whoever you are. call and you will also verbally process the situation yourself and hopefully gain some insight into what exactly is going on.

Check the facts

Coles shares his own (after the fact) tips for avoiding scams: “Don’t underestimate your innate instinct to obey authority.” This means you should always be skeptical of supposed authority figures. For example, no one from the Federal Trade Commission will ever give you a badge number, ask you to verify your Social Security number, ask how much money you have in your bank account, transfer you to a CIA agent, or send you text messages from Blue. To borrow an aphorism from the world of journalism, if your mother asks you for the last four numbers of your Social Security number, read it.

Please independently verify any investment opportunities and charitable applications before giving money. Regularly review your financial statements for any unusual activity that may indicate identity theft. If someone calls you out of the blue and tells you that your identity has been stolen or that there is a warrant out for your arrest, hang up and check it out for yourself. Call your bank or credit card company directly. Call the non-emergency lines at your police department to make sure you really have a “problem.” Never believe that the person who started the conversation is who he says he is. (And for more tips on a case-by-case basis, here are some tips for avoiding the most persistent online scams .)

Bottom line

There are two things you must do to avoid becoming a victim of a scam. First, the need for constant vigilance. And secondly, the idea that, despite your belief that you are too smart to fall for a scam, you are not. There is a perfect storm of circumstances that can deceive even you.

We all want to believe that we can’t fall for a scam. But scammers are always coming up with new schemes to catch us at our most vulnerable. Remain skeptical, trust your instincts, and don’t be overconfident. Scammers are savvy, but you can outsmart them by doing your due diligence.

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