SMART MONEY: Frauds can seem real
By Brad Brain
It Felt Real
My wife and I were looking for a short-term rental. We went online and looked at the options.
We found a place that looked perfect. Just off the ocean, for a great price, and with lots of amenities. Comparing it to the other units, this one was superior by virtually any measure. It was definitely our first choice.
We sent an email to the contact information listed, but did not get a response. We tried to track down the phone number for the rental agency, but nobody there knew what we were talking about.
After we realized that we were not making any progress, we sadly started looking at other options. Eventually we found a replacement. This one was not near the ocean though and, even though it was a smaller unit, the price was significantly more.
Then, a few days later, just as we were telling the second choice guys that we would rent their place, I got an email. It was from the person that owned our first choice of rentals, asking if we were still interested!
My wife and I were so excited! We were going to be near the ocean, plus save a bunch of money too!
The guy said he was out of the country, which is why we couldn’t reach anyone. The story was plausible.
He wanted to speak to us on the phone before he agreed to rent to us. He told us the story of how the unit used to be occupied by his daughter, but she was going through a divorce, and the whole family was in Spain at the moment, so please if I would just send the rent and a damage deposit in advance he would instruct the rental agency to show us the unit, but if we didn’t like it then no problem we would get a full refund.
That’s when my wife said, “It’s a scam.”
As soon as she said that everything made sense. Why such a desirable until was renting below market value, why nobody at the rental agency could find the unit we were inquiring about, why it was so difficult to reach the “owner”.
In hindsight I was surprised I didn’t pick up on it sooner. Usually, my scam radar is dialed in.
But the thing is, I wanted this deal to be true. This is the biggest thing that makes scams hard to detect when you are the potential victim – you want the deal to be true.
As soon as my wife declared “scam!” I noticed things that I hadn’t picked up on before. Like how the pictures of the unit appeared to be of unit 13, but it was unit 45 that was supposed to be available for rent. I think the scammer just grabbed some pictures off a legitimate rental listing and recycled them, posing as a lawful owner.
It actually hurt a bit when I realized that we were not going to get the ocean view. But, to be clear, it should not have hurt at all. Rather, I should have felt a great sense of relief that all my money is still in my pocket, and not the thief’s.
Instead, initially it felt like loss. This is clearly not rational because I didn’t lose anything. The ocean rental was never real in the first place. But this is how emotions will involuntarily get involved, clouding our judgment.
The reason that I am telling you all this is that normally I am not stupid. Or gullible. Or naïve. Or uninformed. Or scam-ignorant. Nonetheless, they nearly got me. And if I can be a potential victim, then you can too.
Frauds are everywhere. Real estate rentals. Offers to get you out of your timeshare. Offers to connect you to junior hockey programs. Offers to buy or sell stuff on Facebook.
And there are plenty of frauds when it comes to investments.
People promising great returns with little risk. People promising to get you in on something that was previously only accessible to the elite. People who try to take advantage of a personal connection or affiliation. People who can’t really answer questions on how the scheme is supposed to work.
There is some great fraud awareness info on the BC Securities website, www.investright.org . If someone is pitching you something, validate the claims first.
Be super careful if anyone ever asks for your money or your confidential information. Especially if its for something you really want. That’s when your guard may be down. That’s what some scammers are trying to exploit. And they are very creative.
Frauds seem real. Ask the questions. Be skeptical. Seeming real and being real are not the same thing.
Brad Brain. CFP, R.F.P., CIM, TEP is a Certified Financial Planner in Fort St John, BC. This material is prepared for general circulation and may not reflect your individual financial circumstances. Brad can be reached at www.bradbrainfinancial.com.