1. Financial Bootcamp – Part 5 Avoiding Common Scams

2. 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)

3. 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

4. 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

5. 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.

6. 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 address, syntax, grammar, spelling, etc.)

7. 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

8. 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

9. 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.

10. 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

11. 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

12. 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

13. 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.)

14. 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
Use common sense and good judgment

15. 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