Don't Be Scammed (S3E6)

Monday, July 3rd

Keeping your emotions in check is a great way to avoid being scammed. 


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Listen there's a secret emotion and hiding inside greed. This need be even more powerful. Than greed is that's what we're gonna talk about today on how much. Her money is sponsored by Sheryl financial hi this is in only natural financial advisor with Carol financial. They're ready to match retirement can be curvy confusing and quality tourist and stops with you simply getting started. Approaching retirement or fall somewhere in the middle join us sir our new series of workshops this summer. We college retirement simple. For more information visit our website and Carol financial dot com. It's Carol financial it's retirement a simple. I go ahead you guessed it. Even back to the days when human beings were using clam shells from money. That there were scare first. That there were frauds durst did there were also its teams to separate you from your clam shells and you'd be eaten in your coins in your dollars. But I think that with the burn it and although it's available on their terms of identity theft. Meet either so I'm just brand new twists on some very very old schemes what do you think crest. Have not thrusters and money's money you have robbing plans always human us. They've they've death oil has been with us I think you're right that they've got more sophisticated. But I tell you that the big difference between. Between scams are used to see in scales don't seem to day. I think they've gotten more in touch with sort of the emotional things that makes people not bad decisions. Give you great example. The IRS camp and I know you've heard this now but like the higher you get an email. Or voicemail or text. From send I have claiming I got to last week to voice tells last week. From someone claiming to be the IRS and they're following suit can't sheer guess I've got a Mac call okay. And what do what do they do and they're playing on your fear and who were people afraid of key hires you matter that's rash. How great she I think that's a very sophisticated. Scam really because they're either playing off your emotion your emotions in a pretty unique way. And he's you feel like. Well I don't. Whatever the IRS says I have to comply I think you just have to do it and I and I think we're drilled a from childhood on that if somebody calls and says I'm the IRS he does not question it because if they really are the IRS and now you're all like attitude Knoll. Thank you end up and IRS jail which I'm pretty sure there's not a thing. So let's talk about let's let's talk about the iris scans because they. And Don you panic upgrade. Yeah and soup moose of the times schemes are trying to play off your emotions because people make bad decisions we and there are emotional. Right I mean you can probably look back. Think of the last time we got really emotional maybe it was an argument with someone okay you you never accuse well right now if you look back an hour later and think about like. Some of the things you said to that person you're like the world is actually that we have rational person would have said that. Why did I choose to do that I used to date somebody years ago that would throw stuff. When they're literally little unsure regular objects. Would choose emotional and it was like. Most craziest thing shiver through that you remembered for the most dangerous thing I can definitely the most dangerous was a bookie has. But it was boy don't have you know when you're heavy like Bhutto lately to little world his little Buddha statues that you used to hold down books we have always liked. Four pounds is about the size of a softball Chris I see people kill each other on investigation discovery with wilderness you're lucky you're sitting here right now. I'll happily we you know we're we're emotional we made bad decisions so oh most scare some whatever stimulus. Kurt tries to meet Hugh emotional. Right the IRS is trying him the iris skim trying to make you afraid and then did what's gonna happen is. Basically when you get emotional the party your brain that does like analytical thinking just shuts off we have right it's no longer there at all. And OK so this is a bit teach you something must be really rear crash. You have you ever felt like you're getting really emotional and you just need to calm down yeah out of every best thing in the world to do is math. To calm yourself calm herself down so. Being two numbers that you know yourself remembering your work number two an extra early to really emotional and you need to calm down some tractor cellphone number from your work for a number. A that would calm me down and they'll definitely good just like it stopped shoot edit and yeah. The part of your brain that's trying to shut off to show back on. And it's really interest in but a lot of times if you fuel yourself commercial anything that anything you can doodle for sure self to make. A series of very sane rational choices and who wouldn't it speed dual flip your brain it's like flipping a switch your brain is truly entry. I can see you know I bet doesn't work so I bet when that Levy was thrown Balkans that you add that when you said Barbara you need to do some math I have not come. It's. I actually try that was my wife do it doesn't work out there and she's a heroin rehab calm but you know effect we keep track and so the iris scans. It's a scam because the IRS never calls you on the phone sure fox. Sure they do rules they always start by sending you a letter. And then they'll send you another letter and the messenger another letter and passenger another today does the IRS email you. Not to my knowledge I don't know I don't think so memory card and email from the Arabs I don't know anyone who's ever got a phone call. I do move. Lots of people who have gotten registered letters yeah the IRS all that registered letter they may ask you to call them. And I had to start a rumor yeah okay but they will not. Call you. So that's just like starting right out of the gate the IRS will not call you one of the things I worry about with your scam is. It's one thing you know if you're 28 years old you've grown up in a digital connected world. But your grandma off. I hear your older parents they haven't grown up in that world and they can they come from additional world where if the government calls you comply right. He actually either the personal I know who's gotten taken by the IRS skimming missiles actually in the paper and documents are not talking on a class because he told everybody was actually my my former pastor. Oh wow and I think the it was. More than 101000 dollars that they got out Cindy. They said were ERS home pastor we're gonna see you when you need to give us a credit card number and how to get the yeah yeah. Date with him they actually had him like going to wal greens and buying these like. Instant money order Ali these guys you give somebody to conclude move through the phone. And then the money's there. Now this is I mean clearly what's better than a what's a better human being and a pastor. At some point your hanky alarm has to be going up what have we don't know how you know. Now the thing right. Blake if they keep you on the phone the whole time they gave you everything we can to not let you get off the photo right. So they keep you on the phone the whole time and remember their constantly. Hitting that fear button right right so they're keeping you in an emotional state where you can't make rational decisions and are the guys most of Barack Kim. Yeah yeah for this. Looks back and says oh my gosh I should do this should on this white and I do this. You know half but it here in the heightened emotional state and she is really hard to make rational decisions. So trick number one is when you're in that state whether it's involving your money or your love life for your kids. Paulus and Doolittle been a matter. Chris could I don't have to be Natalie good doing doing some things that don't rule. That'll sort of thing one thing you can do is just try to remember like your grandparents old phone number. Or something like yeah right what a distraction but yet you nobody is something little engage your memory or your analytic support numbers. It is really good it's sort of lowering rap hybrid a calming you down well let's about what are some mother on really big. Scams that are out there operating that people need to be aware sure. I'm gonna classify a lot of different scams is the same way and only man in the mean look let me start by saying. You know there's a scam where I'm clearly just trying to get your money for nothing. Right right that's what we're we're turn up the IRS scare I'm clearly trying to get you just give me money for nothing OK but there's other types of scams like. What if I'm trying to convince you to buy something that's not worth much of anything. OK so. Good example you know Sherry I'm holding a paper clip. For those of you that are listening than actually holding a paper clip now this is a paper clip or is it a genuine. Miniature. Of the largest paper clip on the plant. It. I fear and I'll do is is this a rare mint condition junior in miniature of the largest paper clip on the planet. So instead of it being a paper clip now it's something's got to value I value right so now I try to sell this to your for Tony dollars now is not a scam dia I'm absolutely. I usually ridiculous one but let me tell you some rules that are so ridiculous. You may have heard people armed. The radio or on television. Trying to sell you a system. Force stock trading. Forest system for flipping through a state or racist term does everything real estate. Actually they're they're worse there's some truth to the fact that you can make money flipping real estate. Maybe but there's no way that the system that they are selling is worth what they usually sell for golf and there are thousands of dollars. Let me give you the warm for treating. One that I hear okay. You know we're gonna teach you how to do treating yourself and you can do it at home and you know just by our system right and then you're gonna show you pictures of somebody you got. 300%. A year in who returned from treating okay. Now all you have to do is buy this book and the book is 7995. Okay now. You've sold a book. I assume Dahlia Reich is your author OK so how long did it take from the time you first decided to write a book. To the time that people were buying it and you were receiving checks from the people who bought it about Mueller not like. The publisher giving you money to write a book that the publisher saying. And we sold this many copies here's your child how couple years through your skin tissues to you OK now if I've got a million dollars. And I he gets 300%. Returns okay. In one year my one million dollars turns into a four million dollars I make 300% that's three million dollars add to lower learned ourselves four million dollars from two years my one million dollar Reese becomes sixteen million dollars. OK did you bring more than sixteen million dollars off your last book I hope god. Now do you truly weird what happens in years three. We'll now get sixteen million dollars or your 300% return I got 64. Million dollars. Right grade you're for 256. Million dollars and in your five I have over a billion dollars and do you know five years. Now find nor can make two billion dollars in five years while Murray in a book. You know I've often. And that while Byron I will see why I don't like share why vice. Why don't you you don't want you read about it yeah why in the world would I care a rebuke billionaire in five years. So let's see and a great. A lot of those sorts of schemes don't hold up to simple maths. Right but once again what happens you get emotional the part of your bring in the does Mathisen should learn oh and oh wait a second hundred producer because they're selling home yeah. And a dream beyond who doesn't want a jury we'll tell you something weird a lot of. And you you're we talked about fear and greed is being these powerful things in money. But here's something people don't talk about much is that greed actually has an element of fear and it too. People people fear is really powerful right that's what's kept us alive frank if you didn't have fear. You probably don't last long re great. But greed has an element of fear to you feared missing out you fierce someone else succeeding where you should have and didn't. I'm Susan moment of fear in that too. So yes so these guys that are sewn this this super treating system and are gonna Mayhew. You know millions of dollars. Why would they sell it to. If it's factory keep Richard you know why don't source where I lived in Fiji on a beach doing our trading we don't care whether that you buy their books. Or by their all on line and online training videos. Out on him probably you see lake on in this happens a lot of late night TV. Com it's not selling gold or silver. They're selling gold or silver objects kept hustling bullion great characters selling get this genuinely US menu foods some you know Iraq drunken eagle co leader had a good. And you know there and they're selling fear big time you know him world civilization is going to collapse and you'll need this to trade for food and bullets he. Not any time I buy something and you put something in in my hand at least a Cilic I got a little some some from my yeah. Oh I know but they're. They're just cellular much more than it's actually work right you know that they'll go so. The most recent one I saw was talking about selling. Gold coins and were saying genuine gold coins and there was about a 150 dollars per point. Well that's for a tenth of an ounce of gold. So moved. Ten times a 150 is 15100 in gold souls at thirteen 150. You there that's a pretty healthy little more I don't initial right. They're selling something for more than it's worth. Now the other thing that I've seen that sort of related you know that that plays on that seemed fears that the economy might be falling apart rural kind of going to pick him a hand basket. They used to be these video news there were called into America. You remember those these three advertising yet to write and do well do those videos. All. Are about selling newsletters. So it's kind of the same thing you're selling something there's just not worth anything right so. They sell you like a monthly newsletter subscription but it's thirty dollars a month for this newsletter right. So our enemy knows her mom's. They'd like to think there's some value their but I can even imagine. Chatting somebody earlier dollars per month he had by this newsletter the only reason they do it is because they're scared. You cause fear and that and here's the really ugly thing I'm not gonna say you've covered on this but I will admit that I've done this ever subscribe to some thing and like. Not use it but not cancel the subscription yeah like I months and yeah after. Yes so I just recently got like a little email saying that. You know the credit card we have on file for such and such is no longer valid. Right and I was like I did not know I didn't get I had that it's paying forty dollars a year for like four years. For this thing I know I had. Yeah that's what to do with the subscription they say the subscriptions are thirty bucks a month. And they're betting not only can make. Basically charge you for garbage. But they you'll forget. Furl and auto renewed get an auto renew there was something there's a scam it was going around online and because I mean I'm not I'm a big lake let's get a Google review thing going on T shirt on big guy checkpoints often. One of one of these pirates or forget what it was but I'll every Google review said you'll never he opted died on subscribe to. There's no mechanism to unsubscribe. You'll never skate desk and I think that some of these home kind of scams Nikkei heat EJ did in the ground level price isn't so bad. It's a small way door in the keep can't get back out. That's the they're counting on that that's exactly right so we talked about on Monday that you're being taken for not saying money that you're being charged for something it's not really worth what they're charging what some other kind scanned. Well there's there's another. There's another scheme that probably falls into that. It's. You're giving giving money to nothing and that's this very. Carmen it's more common than people think the most feeble current these are Ponzi schemes. Linked to Bernie Madoff Bernie made off limits as there was a famous one here in Charlotte not too aren't nearly got uncovered. Armed deer are a lot more Ponzi schemes and people. Shot 30 yeah actually had had a good friend whose mother fell for warm awhile back and it was. Sending money to these guys that work treating. Foreign current seat in. In the the Bahamas and it was like she send them. Think thousand dollars or for sure 2000 dollars or first and they surged sending her checks every quarter. That was like her interest her quote on quote interest story looked to show what looks to drill in Jerry Rio and then she sends them a lot more money. Right I think about six and nine months later. It took her bow out. You know a year and a half two years to figure out that it was all garbage and and she didn't find out until she refused to send them. More money. Wow because as soon as she stopped sending them more to invest they stop sending her horror interest rates. So I mean on the one hand great if it looks too good to be true it probably is this here and in the case of the Ponzi scheme thing I just watched this incredible. Movie about the Bernie Madoff Ponzi empire Robert De Niro plays Bernie Madoff Michelle Pfeiffer plays his wife. It's so phenomenally well done. One of one of the a hard things about identifying a Ponzi scheme like in the Bernie Madoff instance. It looked so lynch it just didn't I usually one store would do you know this series and exchange commission has. How do you click how do you not trust that. So what you hear people all the time say when you do you due diligence well is that a web site the tabloid like a delta jet set its open looks that was well here's. Here's the thing I think you do your due diligence by ruling knowing the people. That you're working with and you can say well there were people who ruin your Bernie Madoff that didn't you're you're right. But then I think you've got to have healthy skepticism about any thing so Warren no the people to have healthy skepticism. You will return one of the most basic things a lot of Ponzi schemes used it that your skepticism should just do your bureau alarm should go off okay. When somebody uses the word guarantee. Our Tokai. Okay sue when somebody says we're gonna gearing tee let's see basic guarantee 10%. Returns okay. Well here's the thing what's a CD pay right now per year you know nobody I know it's very marriage let's say it's 1% gets it's 1%. OK so if it's a CD is guaranteed money they're guaranteeing you 1%. How can someone else be guaranteeing 10%. And if somebody was guaranteeing 10% while they need your 101000 dollars. Because they do you think timing and beat him because there is the deed that the big money. We've put so much in it that you could never get any of it anyway. Right that's right Edwards has a right lake like this that some giant endowment with hundreds of you know hundreds of billions and a birdie doesn't leave you mean yeah Bernie would not have come to talk to you. Okay now Bernie might have talked to reunion people. That had a lot of money in New York because he Newsom and mormons he influence you wanted to spread the web Graham. But but he's not he's not knock on your door asking for 2000 sure right. Speaking really careful about guarantees as to who's making to guarantee a few strokes. That's the big one. That's one that plays on everything we've talked about not just fear and not to screen but. There's that once playing on the on confusion in and animosity for myself ignorance and a lot of us have about the way the markets work great capsule so. What you do when I know what I know about the stock market I know you can't guarantee need 10%. But maybe you're such a wizard. Here's such a genius. And that's how Bernie Madoff was positioned yet. You are somebody. Maybe you can end here and you do your thing no one else can do I mean look at all of the people that were to try to yes some of them were big financial finish. I'm the worst school teachers and nursing straight from people who make their living outside of the world of finance. Yeah they are and and you know unfortunately. It's really hard to protect that that's why I can just say no the people you're dealing with have healthy skepticism. And and ask asked if you're if you're not the person who really. Gets the financial side asks somebody. Ask a few other people get more opinion because because most of the time those kinds of things won't hold up to scrutiny. They won't hold up to three or four people talking through likes what he's doing like. You may be your your your next door neighbor has a cousin who's a bond trader. Things like what we call my cousin just cease it's one of those things were not yeah talk about as well around you people like you figure out think his. Because Ponzi schemes are very good at making this weird thing you're doing sound legitimate. Got you here. So that's money for nothing and money for something it's not worth the price giving money enough to make a Ponzi scheme what else before we wrap up today's episode do we need an unarmed out final outcome of that. This last one is the most nefarious and I look out word nefarious Sydor if you're OK so. What about the skiing M when the person scheming new doesn't know it's a scheme. How now how does that work okay. Soon all the time. She's all the time people sell financial products that they don't understand that. Yeah I can OK and and maybe I'm not talking about it directly but maybe it rhymes with street in new piece. God Asia. He served Peary complicated products with very thick contracts and a lot of the people who sell them. Don't know who how bad a deal it is. They didn't do the map data and sit down and think through it. There's clearly perceived expert or the perceived expert and and I think this is. I think this is pervasive I think it happens all over the place I think they're people selling of financial products that they don't themselves understand. There's some point the financial targets so complicated. That the person selling you it doesn't understand it. Yet they understand what sounds good about it and they understand that they get paid for selling. I have a cousin Chris who used to snatch flies out of beer eat them. And then he went to work in the financial sector. I gotta tell you know how quick system you know he try and and what are his I don't even know what he's training year's level of expertise was. So you see your doctor when you look at what yeah. Things that people forget right the guy who's sitting across the table from you may sound very knowledgeable. May present himself as very knowledgeable. Read his bio. Did he actually graduated from college or do you just go to college. I told you let anyone intimidate. You cannot it's not if it's emotional if you're sitting there in getting emotional. Your your not using the party your brain the makes good decisions. Fewest make good decisions rumor Russia how about a few sitting there and the person trying to sell you someone is getting something is getting emotional that's got to be a giant out flat absolutely absolutely. And it's not you know I'm not trying to meet these people out to be idiots. In a lot of cases is not that they're stupid earning saying. It's just that they. DD never really analyzed it and it never really occurred to them to analyze and it's on you buyer beware right it's not all of us. To ultimately be responsible for worm when he ghosts yes and so once again know the people actually looking to lose the person sitting across the table from new. Oh come back have they done the analysis they understand. What they're they're selling you and why are they really an expert you have the ruling an expert. Why in the locker room on this episode Chris and I think what I'll take away used to next time I'm tempted to Chaka book ended a man's head I should pause maybe do some quick try to conclude. In my head of the medal match just kind of come down before I give her one purpose Chama I'm glad it's that's what you retained an. So you know I don't be useful for me I couldn't exit. At that wraps up this episode of her money to broadcast on our next episode we're gonna talk about some strategies. To pay down that student loan debt that's next time on her mind. K if you want more information about what we talked about entity shows or if you just have other questions about money. This is our website it's WWW Doug Carol financial dot com or you can only shoot me an email whether it's through the podcast or through my website. I'd be happy to help this I can't. The money is sponsored by killed financial hi this is only natural financial advisor with Carol financial. They're ready to match retirement can be Kirby confusing and Foley. Approaching retirement or fall somewhere in the meadow join us for our new series of workshops this summer. We college retirement it's simple. For more information visit our website and Carol financial dot com. It's Carol financial it's retirement simple. They're hurt already my guess is hosted by me Sherry lynch and meet Chris Carroll. Our executive producers or new trial broke. 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