Forbes (July 1, 2019) – Even those of us who pride ourselves on being good judges of character and wary of something that sounds or looks too good to be true, can fall for a hoax, a sham or a scamster. And Abby Ellin is no exception. But her true tale is a whopper.

In her excellent memoir Duped: Double Lives, False Identities, and the Con Man I Almost Married, Ellin divulges her personal story, but the award-winning journalist in her (she’s a regular contributor to The New York Times) takes it deeper to share her research on what compels people to lie, the ways they do it, and, what motivates people like her to believe them.

After reading her book, I reached out to Ellin to hear her take on how people can be on guard in the investment and work arenas- two areas often trolled by unscrupulous individuals..

Kerry: What lessons can someone learn from Duped that can help them avoid getting tripped up by an unscrupulous money adviser or sales pitch? Advice? Tips?

Abby Ellin: Do your due diligence. Be skeptical. Err on the side of caution. Ask questions and do background checks and search the internet whenever possible, or call the Better Business Bureau. ALWAYS look for red flags, and pay attention to them! Which means you are going to have to be vigilant pretty much all the time, which is obviously harder than it sounds.

Really, the best way to find a decent and legit money advisor is through word of mouth. And even then–I’m thinking of Madoff–if someone offers something that sounds too good to be true, it probably is.

Kerry: I can’t resist adding my two cents. I agree it’s best to check with friends and family for recommendations. But it’s also worth taking that extra step to look up the public record on a registered investment adviser. To do so, contact the Securities and Exchange Commission (adviserinfo.sec.gov). BrokerCheck (brokercheck.finra.org) is another place to check on employment history and exams passed, as well as any consumer complaints or whether the broker has been sanctioned.

Here are a few basic items to check:

• Does the advisor’s name appear in BrokerCheck? If not, he or she is not licensed. Check under “disclosure events” to find cases where an advisor’s behavior may have had complaints. This can include inquiries by state or federal regulators. They may have been proven innocent, so this is not necessarily a black mark. Read the entire entry. While most advisors have spotless records, about 7 percent of brokers registered with FINRA have some transgression on their record.
• It’s good to get a bead on how long someone has worked for a firm. If someone job-jumps, he or she may not be the right person for you. A BrokerCheck report will list an advisor’s employment past.
• It’s also wise to do a quick internet search on any current or potential advisors to see if anything pops up that reflects poorly on their track record. Some state securities regulators also offer reports that provide a fuller picture of an advisor’s record, but the availability of these reports varies widely. PIABA (Public Investors Arbitration Bar Association, piaba.org/) has a list and contact information for the state agencies.
• Tap into the tools offered by the Investor Protection Trust (iinvest.org/tools-resources/) to learn more.

Kerry: Are there any lessons here to help retirees who want to make some work from home income to avoid job offer scams? 

Abby Ellin: Again, do your due diligence. Ask questions. Who are these people? Can you call and check up on them? Do you know anyone who has worked with them and had good (or bad) experiences? You must be take care of yourself, because no one else is going to do it for you. If you have any doubts–don’t work with them! I think all gut feelings are real, and should be taken seriously.

Kerry: As a work and jobs strategist, I hear these tales of woe more than I’d like to. I would add to your smart advice: Go directly to a company you would like to work for and see if it is hiring remote workers. One place to start is the career section of the company’s website.

You can also tap into sites such as FlexJobs.com, virtualvocations.com and RatRaceRebellion.com, a website that screens job leads on home-based jobs, which are dedicated to legitimate work-from-home jobs; they screen employers for you. Work-from-home scams, typically promise to pay more than you ever dreamed or they may charge you a fee if you want to learn more about a potential job.

Also check with your local Better Business Bureau.  Run a search for the company name and the word “complaints” to see if anything pops up. If you believe you have been exploited by a work-at-home job scam, you can file a complaint with the FTC at ftc.gov/complaint or 877-FTC-HELP (877-382-4357), or with your state’s attorney general. Other tips:

• Ask what precise duties you’ll have to perform, whether you will be paid by salary or commission, who will pay you, and when and how often you’ll be paid.
• If you are asked to pay up front cash for a list of phone numbers or other things essential to start earning, it’s probably a scam.
• Avoid companies that offer to send you an “advance” on your pay. Con artists do this to get your bank info.
• Don’t sign documentation that demands periodic purchases.
• Never send money or give out personal information. Anytime you are asked to pay any money in advance for anything or give anyone your social security, credit card or other personal information assume it is a scam.
• If the company is local ask for a street address and physically go to the location to check it out.
• Be wary of inflated claims of a product effectiveness and larger-than-life claims of potential earnings.
• Finally, be suspicious of testimonials by a person who you can’t research further.

As a seasoned journalist trained to be skeptical, Ellin says that while her ex-fiancée wove his tales and she fell deeper into the deception, if it had been a source for a work assignment, things might have turned out differently. “If this had been a story, I’d have fact-checked the hell out of it…but “his stories were so ludicrous they had to be true.”

She went along with him, even “as the acid in her gut churned.” The good news: He only stole her heart.