How to Guard Yourself Against Con Artists

Con artists do not discriminate against the old, young, male or female, so you need to know how to guard yourself against con artists in order to protect your assets, your privacy and your self-respect. Despite being well-informed, people every year are still duped into frauds and scams. Refuse to be a victim. Instead, learn how to spot con artists and how to protect yourself and your well-being.

Part 1

Part 1 of 3:

Recognizing Scams and Cons

1
Avoid anything that sounds too good to be true. If someone calls you out of the blue and offers you free money, it sounds like a great deal, right? Unfortunately, nothing in life is really free. If someone makes you an offer that sounds too good, then it probably is.
- For example, someone who claims an offer is “high profit, no risk” is clearly lying.^{[1]XResearch source} Why wouldn’t they take advantage of the deal instead of offering it to you?
- Also avoid medical treatments that promise “miracle cures.”^{[2]XResearch source} Unfortunately, there are few miracles in medicine.
- Be skeptical of claims that you can make $5,000 a month out of your own home if you just send $500 to a company. These deals rarely pan out.
2
Identify “high pressure” sales tactics. High pressure sales tactics are attempts to get you to purchase something quickly without thinking it through. Con artists love these tactics because they are often effective. If someone contacts you, be on the lookout for the following high pressure techniques:
- The scammer tells you that you must act now, otherwise the offer will disappear.^{[3]XResearch source}
- The con artist claims that what they are trying to sell you is rare, so you better snap it up fast. This is almost always false.^{[4]XResearch source}
- The scammer bullies you or screams at you.^{[5]XTrustworthy SourceBetter Business BureauNonprofit organization dedicated to promoting marketplace trustworthiness by educating consumers and reviewing businessesGo to source} Since you aren’t obligated to buy anything from anyone, there is no reason you should be bullied.
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3
Recognize common fraudulent schemes. Con artists are very creative and come up with new cons every day. However, there are some popular frauds which you should recognize, such as the following:
- Someone poses as an agent for the Internal Revenue Service. They demand that you pay money to avoid being put in jail.^{[6]XResearch source} You should realize that the IRS will not call you without first sending you a letter. Also, it is highly unlikely you will be put in jail.
- Someone approaches you directly to sell services and asks for advance payment. For example, someone could offer to make repairs on your home. After you cut a check, they disappear.
- The person promises you that what they are selling you will increase in value. In fact, they claim that there is a third person waiting in the wings to buy the product at a mark-up. This is a scam. If the third person wanted the product so badly, they could buy it directly from the con artist.
- You receive a phone call or email telling you that you won the lottery or some other prize. The person on the other end asks that you send a “processing fee” or a down payment. After you send the money, you never hear from them again.
- Read a list of the most common scams at https://www.usa.gov/stop-scams-frauds#item-35172.
4
Look out for common scams involving money. A majority of con artists will try to get money from you. They use common schemes that they know have worked in the past. Once you know how these types of scams work, you will be able to identify them and avoid them easier.
- A lot of financial scams take place over the phone. The scammers will exaggerate or lie to get you to give them some amount of money. This could mean offering "free" vacations that actually have a ton of hidden fees. You will also see con artists offer you fake business or investment opportunities. Once you give them the money, they will disappear. A lot of con artists will pretend to be taking donations for a specific charity. in reality, they keep the money they raise for themselves.
- If you recognize these types of phone calls, avoid them and hang up. If it is an automated call, consider putting yourself on the national do not call list by calling 1-888-382-1222.^{[7]XTrustworthy SourceUSA.GOVOfficial website for the United States federal governmentGo to source}
5
Recognize how phishing scams work. Unlike financial scams, phishing scams attempt to gain access to your personal information (e.g., account numbers, Social Security numbers, ID numbers). Con artists use this information to steal your identity. To get access to your personal information, scammers will call or email you with an urgent message. They will tell you that something has gone wrong and that they can fix it if they get your personal information. For example, some scammers will call you telling you that there has been fraud on your bank account. The caller will tell you they can fix it, but they first have to verify your personal information.
- When you get these types of messages, do not fall for their bait. Hang up and never give your personal information to anyone with out first verifying their identity.
- if you get an email you do not recognize, never open an attachment that may be embedded. These attachments are usually viruses that act to take personal information from your computer.^{[8]XResearch source}
6
Listen to the voice in your head. Often, people know that they are potentially being conned. The person talking to you sounds too smooth, or the offer is too good to be true. A tiny voice in your head says, “This doesn’t sound right.” You should trust that voice.^{[9]XResearch source}
- Also pay attention to how your body responds. If your palms are sweating or your heart is beating fast, then you are not thinking rationally at that point.^{[10]XResearch source} You are vulnerable to being conned.
7
Ask questions. Before making a purchase, you should always ask questions. Get answers to anything you are unsure about. Ask about the details of the product, and always listen closely to the answers.
- Some con artists are so confident in their ability to lie that they will trip themselves up or talk in circles.^{[11]XResearch source} If you listen closely, you can recognize that they are not making any sense.
You can stay on top of the latest frauds by signing up for fraud alerts from the Federal Trade Commission. Sign-up is free. Visit http://www.ftc.gov/scams to sign up. Alerts will be sent to your email account.^{[12]XTrustworthy SourceFederal Trade CommissionWebsite with up-to-date information for consumers from the Federal Trade CommissonGo to source}
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Part 2

Part 2 of 3:

Protecting Yourself from Con Artists

1
Develop a rejection script. Scammers are often successful because people are afraid to say “no” and sound rude. For this reason, you should memorize a few lines that you can repeat whenever someone tries to sell you something.
- For example, if someone calls you over the phone, you can say, “I’m sorry. This isn’t a good time. Good bye.”^{[13]XResearch source} Then you hang up the phone without letting the other person speak.
- If someone stops you on the street, you could say, “I’m sorry. I’m running late!” and then keep walking.
- Practice these responses so that they are second nature and you use them automatically.
2
Register with the National Do Not Call Registry. In the United States, you can stop telemarketers by signing up with this registry.^{[14]XResearch source} Registering won’t protect you from all con artists, but it can make it more difficult for them to harass you.
- Visit http://www.donotcall.gov and provide your information.
3
Ask if the seller is licensed. Whenever someone tries to sell you something, you should always ask if their business is licensed. Also ask who licensed them and ask for their license number.
- If the seller hesitates, then assume you are dealing with a con artist.
- Once you get the license information, you can check with the relevant government agency to see if they are truly licensed. For example, someone selling you insurance should be licensed with your state’s insurance department.
4
Avoid paying in advance. Many scams make a promise and then ask that you pay in advance. For example, they might need a down payment or processing fee. You should avoid doing so. In fact, you shouldn’t offer anything of value in advance:
- Don’t send money. Also don’t let a business send a messenger to your home to pick up money.^{[15]XResearch source}
- Don’t give out your financial information, such as credit card or bank account numbers.
- Don’t give out your personal information, such as your date of birth or Social Security Number.
5
Check out a business before buying. Some scammers will tell you that their business is legitimate and that you don’t need to check with anyone. You should immediately hang up or walk away. A reputable business will be comfortable letting you check their reputation.
- Visit your local Better Business Bureau and look at complaints.
- You can also contact a local consumer protection agency and ask if they have ever heard of the company.^{[16]XResearch source}
- Also search online for complaints. Type in the name of the company and see what comes up.
6
Take your time before making a decision. Con artists are skilled at preying on your emotions. They get you feeling so excited (or worried) that you make an impulse decision. Instead of acting impulsively, you should always think over any purchase. In fact, there is no reason not to let you have 24 hours to think before buying.^{[17]XResearch source}
- Talk to your family about whether to buy something. If you are elderly, then talk to your children. If you don’t have any children, then call a local consumer protection agency.
- If you are making a big financial decision, then talk with a financial advisor or a lawyer.^{[18]XResearch source} For example, you shouldn’t take out a reverse mortgage on your home without talking to several people.
7
Consider alternatives. When people are in financial distress, they may be very scared and feel like they have no options. For example, an elderly person who doesn’t have much money might think they have to sign over the deed to their house in order to afford to live. Usually, you have many other options.
- If you can’t identify alternatives, visit a senior center in your neighborhood or call one.
- If you are low income, then find free or reduced-price legal aid in your area. Visit http://www.lsc.gov and type in your address. A qualified legal aid attorney can listen to your situation and come up with alternatives.
8
Get your finances in order. Many people fall for scams because they are in financial distress.^{[19]XResearch source} You can protect yourself from con artists by tackling your financial problems and getting on firmer footing.
- If you are heavily in debt, then attend credit counseling. A credit counselor can review your finances and recommend a debt repayment plan. The counselor may also be able to negotiate lower interest rates or stretch out the repayment period.
- Also consider bankruptcy. Bankruptcy is never ideal. However, it can give you a fresh start. Your credit score will take a big hit, but you can begin repairing it immediately. Schedule a free consultation with a bankruptcy lawyer to discuss whether bankruptcy is right for you.
9
Consider a financial power of attorney for the elderly. Unfortunately, the elderly are popular targets for con artists. As people age, memory loss and loneliness can make them vulnerable. People are particularly vulnerable when a recently deceased spouse used to handle the finances. If your parent is elderly, you should discuss a possible financial power of attorney.
- With a power of attorney, the person appoints an “agent” who is empowered to make financial decisions for them. The agent can sell property, manage bank accounts, and make charitable gifts.^{[20]XResearch source}
- After an elderly person creates a power of attorney, they can simple tell anyone who approaches them with something to sell to contact their agent.
- See Get Power of Attorney for more information.
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Part 3

Part 3 of 3:

Reporting Fraud

1
Don’t be too ashamed to report fraud. If you’ve fallen victim to a scam, then you should definitely report it. Sometimes, people are too embarrassed to report fraud because they fell victim to the con.^{[21]XResearch source} Remember that no one is judging you.
- Instead, focus on the fact that you are protecting other people by reporting the fraud.
2
Write down important information. Before reporting the fraud, you should gather important details that will help authorities find the con artist. Write down the following:^{[22]XTrustworthy SourceInternet Crime Complaint CenterOnline reporting system for individuals to inform the FBI about Internet-related criminal activityGo to source}
- The con artist’s name.
- Any address and phone number the con artist gave you.
- Details about the scam, such as what you were offered and what the con artist said.
- How much money you paid to the con artist and the method of payment (e.g., cash, check, or some other method).
3
Call your local law enforcement. You should report the fraud quickly to your local police.^{[23]XResearch source} You can find the number in the phone book or look online.
- You probably can report fraud anonymously. However, you should consider giving your name.
- If you give your name, then law enforcement can follow up with questions. You also could serve as a witness against the con artist if they are prosecuted.
4
Contact your state Attorney General’s office. You can also report con artists to your state’s Attorney General.^{[24]XResearch source} You can find your state’s office by searching online. Type “your state” and “attorney general” into a search engine.
- Look for contact information on the Attorney General’s website.
5
File a complaint with federal agencies. After reporting to local law enforcement and your state agency, you should file complaints with relevant federal agencies. You should report the con artist to the following:^{[25]XResearch source}
- National Fraud Information Center. Call 800-876-7060, from 9:00 am to 5:00 pm.
- Federal Trade Commission. Visit https://www.ftccomplaintassistant.gov/#&panel1-1 to report telemarketing and other scams.
6
Report internet fraud to the Internet Crime Complaint Center (IC3). If the con artist contacted you over the Internet, then you can report to the IC3, which was created by the Federal Bureau of Investigation to smoothly process complaints of Internet fraud. The IC3 works with local, state, and federal regulatory agencies to identify and pursue fraud.^{[26]XTrustworthy SourceInternet Crime Complaint CenterOnline reporting system for individuals to inform the FBI about Internet-related criminal activityGo to source}
- Visit https://www.ic3.gov/default.aspx and click on “File a Complaint” to get started.
- If you live outside the United States, then you can report Internet fraud to your nation’s authorities. You may also be able to report to the E-consumer website at https://econsumer.gov/#crnt, which works with 35 member countries.
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