How to Spot a Con Man
It’s unfortunate but true that con men exist – but here’s the good news. By being proactive and keeping close watch, you can avoid getting played.
Here’s the Scene
You meet a charming young man who seems interested in you and your life – and particularly in your financial situation. He tells you he can make you a million dollars through a handful of savvy investments, but that you first need to give him $20,000 in cash so that he can turn it into that promised million.
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You’re a little nervous, but excited. He seems like a nice guy, right? So you go to the bank, withdraw the cash, and hand it over. Then you never see him – or your money – again.
The scene is fictional – for now. However, education is key if you’re going to avoid being scammed. Here are the top 10 most common places or situations when you might be faced with a con man:
Home improvement is a major area for con men. For example, if someone tells you they are a city inspector and must collect money, ask for credentials.
Postal frauds are also a major source of income for con men. Chain letters, magazine subscriptions, and correspondence courses can all be frauds.
Pyramid schemes are a major area of fraud. These schemes, which got press when financier Bernard Madoff swindled investors out of $50 billion, involves participants making money only when they recruit others into the scheme.
Fake officials will try to swindle you for money with the claim that you may get into legal trouble otherwise. Always ask for credentials and check them out thoroughly before proceeding.
Psychics and fortune tellers can provide amusement, but they can also strip you of a good amount of cash. Watch out for con artists here, particularly over the phone, which can cost as much as $2.99 a minute.
Job-placement agencies can take your money and provide you with nothing. Get references before handing over any cash.
The health field is rife with con men, with medical quackery costing victims millions. Make sure your physician is reputable.
Bait-and-switch rackets can strip you of your money. If someone offers something that seems too good to be true, it probably is.
Fraudulent charities play on your good will and slip their hands into your wallet. Verify a charity is real before donating.
Work-at-home schemes such as envelope stuffing are very often fraudulent. Don’t put down money before you get a paycheck.
Video: The Text Message Trap
Here’s what you can watch for to spot a con man:
You’re told that this may be your “last chance” to get in on a financial opportunity – an investment, for example. By pressuring you to cough up money before doing research, the con man makes you nervous and then takes advantage of it.
Someone tells you a transaction must be cash-only. If you’re prohibited from using money in a way that can be traced – for example, with a check – this is suspicious.
If you’re told you must act immediately or you’ll lose out, pass on the opportunity.
Con men will offer you leftover material for purchase – and it’s likely stolen.
Watch out for get-rich-quick schemes. Most wealthy people will tell you it takes years to amass wealth.
If you’re offered “something for nothing,” you’ll probably get nothing.
Con men will ask you to keep opportunities secret. This is a red flag.
Contests are often a means to extort money. Don’t buy into them.
If you’re told something is only available “today” – don’t believe it.
Another red flag: A con man won’t allow you to discuss his or her opportunity even with family. Don’t believe them.