3 Ways To Spot Financial Scams, According to Money Expert Tori Dunlap

SCAM CONCEPT.
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It’s always a good idea to practice due diligence around your money, especially when taking financial advice from someone you don’t know.

Tori Dunlap, financial educator and New York Times bestselling author, recently posted a reel on Instagram with three tips on how to spot red flags so you can avoid financial scams and hang on to your hard-earned money.

Do Your Homework

Dunlap said the first thing you should do when considering taking financial advice from someone is to research them extensively. Using Google to vet the credibility of people or companies is one of the best and easiest ways to determine whether someone is trustworthy. She said to start by searching their name to gather general information. Then, you can do a deeper dive by searching Google News for articles about them or written by them. 

Dunlap said positive search results are obvious green flags. Anything that supports the person’s character, professional knowledge or background is a good sign that they’re legit. If they have few or a total lack of search results or search results containing negative or concerning information, that’s a big deal. These are red flags that should make you think twice.

Trust Your Gut

This next one is something Dunlap called one of those “woo-woo things,” but it’s something you should pay careful attention to. Trust your instincts.

If you have the feeling something’s off, take it seriously. Dunlap said some common things behind these feelings can be high-pressure tactics or overly enthusiastic sales pitches, as well as someone trying to sell you on a product or service you’ve never heard of.

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If your gut tells you something’s not right, then really call on your critical thinking skills to objectively evaluate the situation.

Make Sure They Share Your Values

Dunlap said she never hears anyone discussing this important but overlooked aspect of financial advice. According to Dunlap, you want to make sure the person you’re considering taking financial advice from shares your values. She also cautioned against dealing with someone who talks down to you or talks to you in a dismissive or insulting manner.

She stressed the importance of engaging with people who make you feel respected, understood and valued. If someone’s approach to finances feels dismissive of your concerns or lacks empathy, it’s probably best to walk away.

Common Scams To Look Out For

Dunlap ended her Instagram reel with a list of scams and “super risky” investments to be aware of. If someone approaches you with an offer involving one of the following opportunities, Dunlap said they could be part of a scam.

  • Index universal life insurance
  • Crypto (especially for an investment of more than 5% of your money)
  • Timeshares
  • Check fraud
  • Day trading
  • Options trading

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