Learn / Part 4 · Protecting What You Have
Scams, Fraud and Bad Advice
How do scams and bad advice work, and how do you stop them?
In brief
Scams and poor advice exploit behaviour, not ignorance. Urgency, secrecy, authority and too-good-to-be-true returns are the repeating signals.
Key ideas
Urgency is the tell
Pressure to act now is how a scammer prevents you from checking.
Make an insight card →Verify independently
Contact the organisation using details you find yourself, never the ones you were given.
Make an insight card →Advice has a price
Free advice often comes with a sale attached; ask how the adviser is paid.
Make an insight card →Red flag
Guaranteed high returns, secrecy, urgency, requests to move money to a “safe account”, or unusual payment methods.
Ask before you sign
- How can I verify who you are, independently?
- What is your regulator and registration number?
Do this week
Run a recent offer through the Red Flag checker.
Try it · 10–45 minutes
Write a family rule: never act on a money request received by phone or message without calling back.
Pause and reflect
Private to this device. Nothing is sent anywhere.
Words worth knowing
- Scam
- A scheme to trick you out of money, often using urgency, trust or fear.
- Fraud
- Deliberate deception to obtain money or advantage, such as a fake investment or impersonation.
- Incentive
- What motivates someone to act, including how a seller, adviser or lender gets paid.
Companion notes written for this website, based on the topics of Chapter 18. They explain ideas and do not reproduce the book. General information, not personal advice.