Stand for Something – Prevent Scams and Ripoffs

Those who stand for nothing fall for anything.”

Alexander Hamilton

There are so many scams and ripoffs around. I always think to have principles and to stand by them is one of the best defenses to the schemes that try and separate you from your wealth.

When you want to earn a living you can do it with honesty and integrity. Working with the idea of a honest day’s work for an honest day’s pay can help keep you out of trying to make a quick buck and getting scammed. Fraudulent deals often prey upon the need for greed or fear. Frauds often need a build of confidence to work.

If your buddy jumps off the Brooklyn Bride doesn’t mean you have to:

One example is to get the confidence of one or more person in a affinity group to give credibility to a investment scam.

Bernie Madoff preyed upon people of his Jewish background as part an affinity group scam. Once he got the confidence of one Jewish Foundation he was able to move on to multiple foundations and hospitals. Each foundation or group didn’t do it’s own due diligence but, relied upon the previous foundations assessments.

When things are too good to be true they usually are:

In the 1800s when the shanghaied sailor was taken it was usually after a few too many “free” drinks at a pub in a port city. Getting something for nothing is usually to good to be true.

The ship captain received a new crew member for the cost of a few drinks. The shanghaied sailor most likely thought what can a few drinks matter. Usually a simple matter can be the prelude for something big. Identity theft is on the rise. Be wary of free things that require your personal information. You don’t want to have your financial identity shanghaied.

Win-Win is the way to go:

A good rule of thumb is to make sure in any dealings you know how the person on the other side of your deal benefits from the deal.  If you plan for a win-win situation then this usually avoids scams. If you purchase a used car, the salesperson should let you check out the car with an independent mechanic. If they refuse then he is not looking for a win-win situation and you may want to look elsewhere.

Fair deals help avoid any losses on either side of a deal. You are set you apart as a person who is fair and more people will want to deal with you fairly.

You are judged by the company you keep (nothing beats a good name):

Normally someone who writes a best selling non-fiction book has some valid points to bring up. Robert Kiyosaki  wrote “Rich Dad – Poor Dad” which is a good book of basic accounting and cash flow concepts. I like Robert Kiyosaki and his message of people need to learn financial literacy, but it looks like he took a detour and got into the seminar business with Russ Whitney.  It then makes me suspect of his judgement and his business ethics. (I don’t think he did his due diligence before partnering with this venture; and it goes to prove you need to do your own checking and not rely upon others.) I really think this partnership hurt the Rich Dad brand.

The bottom line is if you have your values straight you are better able to handle scams and ripoffs.



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