Protecting Your Portfolio—and Yourself—from Financial Scams

Key Takeaways Portfolio risk is not limited to market losses. Protecting your finances also means recognizing scams before money leaves your account.Weakening economic data can be a reminder to review the amount of risk in your portfolio rather than assuming yesterday’s strategy still fits today’s environment.Financial scams can affect people of any age, education level, or financial experience.Scammers frequently exploit urgency, trust, loneliness, fear, financial hope, and seemingly perfect timing.Social media accounts can be hacked and used to impersonate people you actually know, making fraudulent offers appear legitimate.Requests for immediate deposits, gift cards, cryptocurrency transfers, banking information, or unusual payment methods are major warning signs.Before sending money, independently verify the person or organization using contact information you already trust.If a family member is scammed, asking how and why it happened may help prevent the next attempt instead of simply blaming the victim. Aired March 1, 2025 Episode Overview Financial protection involves more than watching the stock market. In this episode of Purpose Driven Finances, Allan Malina discusses two very different forms of financial risk: changing market conditions and scams designed to separate people from their money. Allan first examines weakening economic signals and explains why investors should periodically reassess portfolio risk as economic growth, inflation, interest rates, and market conditions change. The larger portfolio-management lesson is that investors should have a process for responding when the evidence changes rather than simply remaining static. The conversation then turns to financial scams after several clients raised concerns about suspicious situations. Allan and Rich discuss how scammers use social media impersonation, emotional connections, cryptocurrency opportunities, gift cards, and frightening messages supposedly coming from government agencies. One particularly effective tactic is urgency: “Act now before someone else gets it.” Rich describes nearly sending money for a vehicle advertised through a hacked social-media account belonging to someone he knew. Independently contacting the real person exposed the fraud before money changed hands. The lesson: slow down, verify independently, and protect both your money and the people you care about. Frequently Asked Questions What are common warning signs of a financial scam? Unexpected urgency, guaranteed or unusually high returns, requests for gift cards or cryptocurrency, demands for immediate deposits, requests for banking information, and pressure not to independently verify the situation should raise concerns. Can someone I know contact me from a hacked social-media account? Yes. A compromised account can allow a scammer to impersonate someone you trust. Contact that person independently before sending money. Are guaranteed cryptocurrency returns a warning sign? Promises of unusually high or “guaranteed” daily returns deserve extreme caution, particularly when they involve unfamiliar websites, wallets, or requests for financial information. Why do scammers ask for gift cards? Once the victim provides the card numbers or codes, the scammer can quickly access the value. Allan describes a case involving $10,000 in gift cards that was lost after the numbers were provided to the scammer. What should I do before sending money after an unexpected request? Stop and independently verify the request. Contact the person, bank, government agency, or organization through a telephone number or method you already know to be legitimate.