the broken typewriter

By Brad Brain

We are in a very interesting, dynamic time. Artificial Intelligence has already changed the way things work, and its only going to accelerate from here.

Of course, artificial intelligence is not used only for legitimate purposes. Scammers use it too. In addition to all the traditional methods of deception, crooks now also use chatbots, fake reviews and deepfake video to try to steal your money.

Sometimes these attempts are pretty obvious. Sorry folks, Warren Buffett did not really endorse that crazy crypto scheme you saw on social media, despite how authentic may video appear.

Unfortunately, not all attempts to defraud you will be as clumsy as claiming that Warren Buffett is hyping crypto. Some frauds and scams will be damn tricky to spot.

The good news is that, although the scams are getting more devious, the red flags that should raise your suspicion haven’t changed.

Here are four things to watch out for that can indicate that something might not be the best idea for you, or that your emotions are crowding out rational thought, or that you are basing decisions on what you want to hear.

The first thing, which is an automatic red flag, is the promise of big investment gains with no risk. You can have safety, or you can have growth potential, but you are not going to get outsized returns with zero risk. That’s too good to be true.

No legitimate investment can promise high returns without risk. There’s always some level of uncertainty in the market. If someone tells you otherwise, they’re either misleading you or they don’t understand how investing works—and neither of those is good.

The second thing to be aware of is the Fear of Missing Out phenomenon. Sometimes people are worried that they are being left behind. They will want to get in on something “before its too late.” FOMO can overwhelm the pros and cons of the actual decision.

The fear of missing out is a powerful psychological motivator, and crooks will try to use this for their benefit. If you are being pitched a message that makes you seem that you are being left behind, it could be an indicator that someone is trying to exploit your fear.

The third warning sign is high pressure sales tactics. They scammer insists that you need to move quickly or the deal will close. They tell you don’t need to talk this over with your advisor. There make it seem like there is an urgency to make a decision immediately, or else.

Scammers are experts at making you feel like you’ll miss out if you don’t act immediately. But a legitimate investment will never disappear overnight. If you’re being rushed, there’s a reason—and it’s probably not a good one​

The fourth thing that should raise your suspicions is when your questions are not answered. Professionals can explain things. Real investments come with documentation. If the answers to your questions are evasive, be careful.

A real financial professional will give you clear answers and provide documentation to back up what they’re saying. Scammer will talk in circles, using lots of fancy jargon but saying nothing useful. Scammers will avoid specifics, giving vague or overly complicated explanations. Scammers will get defensive, acting like you’re the problem for asking too many questions.

If you can’t get straight answers, that’s your answer—walk away​

You’ve worked hard for your money, and the last thing you want is to see it vanish into thin air because of a bad investment. But here’s the thing: some people out there are actively trying to make that happen. They thrive on confusion, pressure, and misplaced trust, using slick sales pitches and well-rehearsed tricks to get you to hand over your cash.

So, before you make any financial moves, keep an eye out for these warning signs. If any of these feel familiar, hit pause.

Your future self will thank you.

Brad Brain. CFP, R.F.P., CIM, TEP is a Certified Financial Planner in Fort St John, BC. This material is prepared for general circulation and may not reflect your individual financial circumstances. Brad can be reached at www.bradbrainfinancial.com.