Financial Bootcamp – Part 5 Avoiding Common Scams

Objectives Identify common scams affiliates encounter Explain how to avoid and/or respond to scams Provide recommended safeguards to prevent scams and/or mismanagement (intentional or unintentional)

Definition “A scam is a dishonest and misleading attempt to entice a person to part with their money or personal details.” - Habitat for Humanity International

Definition Illegal, immoral, or unethical Rely on emotional vulnerability and/or ignorance Always involve some degree of falsehood or deception Not necessarily monetary, as scammers want private information, too

General Tips It is better to be safe than sorry If something doesn’t feel right then something probably isn’t right You don’t owe anyone anything Don’t let scammers guilt you out of your time or use deceptive language to lure you into listening to them. The more you listen, the more chance there is they will convince you of their scam. If you suspect something is not right about a situation, politely end the conversation immediately.

Signs of a Scam A person provides conflicting, unreliable, or unconvincing information You are unable to verify someone’s credentials Requests personal information (including banking information) and/or asks for you to verify your information Unprofessional correspondence (free e-mail address, syntax, grammar, spelling, etc.)

Signs of a Scam The situation “high-pressure” or urgent, needing you to act or decide immediately The scammer uses threatening language The scammer attempts to illicit sympathy for their “cause” The promised benefit far outweighs the investment

Common Scams “Vendors” selling merchandise far below market-rate Claims of an individual winning a lottery, receiving an inheritance, etc. “Official” documents from an institution requesting to be provided with verification of private information “Emergency” situations that require immediate financial assistance

Social Media Scams Social media attract scammers because of: Wider audience and constant availability Perceived credibility due to association with others Perceived “personal” touch with photographs, names of families, awareness of significant events, etc.

Social Media Scams Scammers utilize social media by: Referring to your direct circle of contacts Referencing the work of your affiliate Adding a “personal” touch to their scam Accessing the information you already have made available to them

Social Media Scams Signs of a social media scam: Individuals with few “friends” and businesses with few “followers / likes” Sudden appearance of a company, brand, or product Larger-than-life advertising and “too good to be true” results Upfront solicitations for money or information and/or desire for contact outside of the social media platform

Social Media Scams If you suspect a social media scam: Utilize search engines to investigate the company or person Contact the social media support staff to report the person and issue Locate associates of the potential scammer and investigate them for validity (are they real people, companies, etc.?) Do a business search through the Secretary of State and the Better Business Bureau

Best Practices Have Board-approved financial and information control policies that are implemented and regularly audited Limit access to private information to only those on a “need-to-know” basis Keep private information securely stored (locked cabinets, password-protected files, etc.)

Best Practices Verify the credentials of anyone attempting to buy, sell, or trade goods or services with the affiliate Ask for at least two references and multiple points of contact for each reference Never provide private information (passwords, social security numbers, etc.) over the telephone or via e-mail Use common sense and good judgment

Affiliate Responsibilities Educate staff and Board members on potential scams Educate homeowners on potential scams Stay alert to scams in your area by reading local newspapers, watching local TV, etc. Contact relevant parties immediately if you believe they have been involved in a scam