Avoiding Scams, Financial and Otherwise

I have a lot of clients who call me concerned about a recent call they allegedly received from the IRS or some other official agency regarding monies they owe. I also receive a lot of calls from clients, unfortunately, who have fallen victim to financial scams where, all too often, there is little to nothing I am able to do for them as the money has already changed hands and the recipient is three sheets to the wind.

What I can say, generally speaking, is what I tell my own mother:

1 - Don't answer the phone if you don't recognize the number;

2 - If you are worried about phone calls from unknown numbers or if you answer a call and they say something untoward, you should install an app such as trapcall which allows you to identify the caller despite the fact that it may come from an unknown number and you should also report the incident to the police to establish a paper trail and timeline for the occurrence;

3 - The IRS and most reputable governmental arms and companies do not use the telephone to communicate that you owe money or are going to jail, but rather, they send you a letter. So, if you get a letter then deal with it but don't worry because some alleged IRS agent over the phone says you owe back taxes of $18,000 and better pay them immediately or you will go to jail. That is the type of situational scam which I usually hear about;

4 - If you are going to invest money with somebody, be careful about giving money to someone personally, or to a company which is not reputable. Also, investing monies by way of a loan which is secured by a mortgage given to you as well as a promissory note is a high risk situation and one which a bank probably would not get involved in because if they did then there would be no need to come to you for the money. I see many people get involved in these situations with little to no background information on the company they are giving the money to, no financial information, no profit and loss statements, no asset and liability statement, no visit to the company or inquiry as to their state status and reputation and no personal guarantee offered. Would a bank lend such a company money?

And, for any and all situations, please contact an attorney for their advice BEFORE you give your money to someone and BEFORE you sign any documents at all.