Recognize scams and evaluate financial professionals

Scams often create urgency, authority, fear, scarcity, secrecy, belonging, or extraordinary hope. The story changes, but the requested action is similar: move money, buy gift cards or crypto, send a wire, share a verification code, install remote-access software, or keep the conversation hidden from people who might question it.

A polished website, realistic account dashboard, familiar caller ID, professional title, celebrity image, or testimonial is not proof. Imposters can copy branding and fabricate returns. Unexpected social-media investment messages and guaranteed low-risk returns are major warning signs.

A caller claiming to be a bank, government agency, technology company, or fraud investigator may say an account is unsafe and money must be moved. The FTC warns that instructions to transfer money to protect it are a scam. A verification code is also a key to an account and should not be shared with an incoming caller.

If a transfer has already occurred, contact the financial institution or payment provider immediately using a verified channel, ask about reversal or recall options, secure accounts, preserve messages and receipts, and report the fraud. Fast action matters, but shame should never delay the response.

Titles such as financial advisor, wealth coach, consultant, or planner do not by themselves reveal licensing, services, legal duties, or compensation. Use Investor.gov and regulator databases to check identity, registration status, firm, disclosures, and disciplinary history. Confirm the person through independently obtained contact information.

Ask what services will be provided, which standard applies to the recommendation, how the person and firm are paid, what conflicts exist, who holds the assets, which products are available, and the total one-time and ongoing cost. Request Form CRS, Form ADV, fee schedules, prospectuses, and other relevant disclosures when applicable.

Create a rule that no unexpected financial demand, investment, business opportunity, large transfer, or new professional relationship is approved during the first conversation. Require written details, an independent verification step, and a cooling-off conversation with a trusted person.

This rule protects experienced people too. Expertise in one area does not remove vulnerability to stress, loneliness, authority, or a well-designed deception. A preliminary decision of 'not yet' preserves every legitimate opportunity and blocks many irreversible losses.