Five tools to stay safe from scammers - LifeGuide Financial Advisors

September 27, 2024 | News

Scamming is rampant right now. In fact, according to the FTC, Americans lost more than $10 billion to fraud in 2023.

And, unfortunately, once the money is gone, in most cases, it’s gone.

The reality is this: Anyone can become a scam victim—even you.

It’s not something that happens “out there somewhere” or to “someone else.” Scammers don’t discriminate; they are going after the smart, cautious, well-informed people you know—your family, friends, and co-workers…YOU!

So here’s what I want to do today:

Tell you a real-life scam story with a big plot twist at the end. Please watch it—it will help you better understand and detect scams.
Share five scam prevention tools you can begin using today.

Let’s jump in!

This scam attempt hit too close to home

Note: This video was originally produced for our monthly client newsletter, Guidepost.

Stay safe from scammers

Use the five tools below to help keep you and your loved ones safe from scammers.

1) The Cool-Off Countdown

Scammers thrive off urgency and heightened emotion, putting us in “fight or flight” mode that literally turns off the thinking, logical side of our brains. Before you act, use the Cool-Off Countdown to get your “thinking brain” back online!

Example scenario:

A pop-up suddenly appears on your computer screen, warning you that your computer has some type of virus and instructs you to call the support number provided immediately.

How to use:

Take some deep breaths and count to ten to give the rational part of your brain time to get back up and running.
In the case above, this looks like shutting down your computer immediately and calling your computer guy—not the number listed. (Note: If you don’t have a “computer guy,” you can call Kirbtech at 717-258-3789. They do all our tech and can be trusted. Tell them Doug from LifeGuide referred you, and they may even give you a discount!)

The bottom line: If you find yourself in an emotional, urgent situation, recognize it as a red flag. Take a deep breath, count to ten, and THINK before taking any next steps.

2) The Pause & Probe

Don’t make any rash decisions. Use the Pause & Probe to critically evaluate something that feels too good to be true or too dire of a situation to make sense.

Example scenarios:

You get a call or an email saying that you’ve won a big contest or are the beneficiary of a large international estate.
You get a call or an email that the IRS is going to take your house or garnish your wages unless you pay your “back taxes, penalties, and interest” immediately.

How to use:

First, PAUSE — DO NOT respond or engage right away.
Then, PROBE — Get critical and ask yourself the obvious questions.
- “How could I win a contest I didn’t even enter?”
- “How could I inherit a massive estate from someone I didn’t even know?”
- “I know I’ve been paying my taxes, and this is the first I’ve heard from the IRS…why is this suddenly so urgent?”

The bottom line: If something seems too good to be true or too dire to make sense, it most likely is.

3) The Polite Power Play

When something feels a bit off, but you don’t want to be rude, use the Polite Power Play to kindly yet firmly end communication.

Example scenario:

You get an unsolicited call explaining that your bank account may have been compromised and, to get things fixed, you’ll first need to verify your identity—your name, address, date of birth, account number, and social security number.

How to use:

Kindly yet firmly say, “I appreciate you bringing this issue to my attention. I never provide my personal information over the phone, as I’m sure you can understand! I will talk with my local representative and take care of it. Thank you very much and have a nice day!” and then HANG UP.

The bottom line: Never give out personal information to an unsolicited contact. Instead, find your bank’s actual phone number online and call them directly, or visit a branch office.

4) The Trustworthy Transaction

When someone requests payments via wire transfer, Western Union, crypto, prepaid debit or gift cards, remember the Trustworthy Transaction and treat these as major red flags.

Example scenario:

You come across a big-ticket item on Facebook Marketplace that you have been searching for for months, and it’s a great deal! When you contact the seller, they confirm it’s still available, but several people are also interested. They say that, if you want it, you need to wire a down payment on it right away.

How to use:

End all communication and report the seller.
Never pay via wire transfer, crypto, or prepaid cards of any kind.
Only buy items online from reputable, well-known websites.
If purchasing from a site like Facebook Marketplace or Craigslist, only buy in-person in a safe, public space. Never pay for holds or to have an item shipped.

The bottom line: Only buy from people you trust. Anyone asking for payment via wire transfer, Western Union, crypto, or prepaid debit or gift cards is almost certainly a scammer.

5) The Phone-a-Friend

Scammers rely on isolating you through urgency, shame and embarrassment, conspiracy theories, and even perceived romantic connections. Don’t take the bait. Instead, Phone-a-Friend to gain some trusted, objective insight.

Example scenario:

You’re a middle-aged man, and a much younger, extremely beautiful woman comes out of nowhere, usually while you are online, and begins to take a not-so-subtle interest in you.

How to use:

Before you act, call someone you trust. Explain the situation and ask for their honest input. Don’t let fear or embarrassment (which scammers rely on!) keep you from making an important call.

The bottom line: Call someone you trust to help you navigate any situation that feels off.

My commitment to you!

If you feel that any interaction is off in any way, please call us! As LifeGuide’s Managing partner, I personally commit to you that we will talk to anyone—client or not!—100% confidential and free of charge. I don’t want to see anyone lose a dime to these crooks!

—Doug Denlinger, RLP^®, CKA^®

My commitment to you!

—Doug Denlinger, RLP^®, CKA^®