Written by C. Edgar Murray
The phrase caveat emptor (let the buyer beware) used to be commonly known and observed in personal and business transactions. Today, with many once personal decisions now made by federal, state, and local government, some of us do not exercise sufficient caution when faced with the many choices and opportunities of our modern world. Even well informed persons have occasional difficulty knowing the legitimate from the fraudulent. Unfortunately, even the vast resources of government cannot stop fraud, and its many efforts may even have helped "sharpies" by creating a false sense of security among citizens.
Whether you are approached by a telemarketer offering fabulous jewelry for the price of dirt, or offered a stock tip at a prepossessing web site on the Internet, you need to know how to avoid becoming a victim of both consumer and financial fraud. Our new book "How to Avoid Financial Fraud" focuses primarily on financial fraud, but it also brings to the reader an awareness of the many faces of fraud.
In today's increasingly complex financial world opportunities for sharpies are legion. Just how should you save and invest? In what forms? Should you really take that get-rich-quick option or lease? Research shows that we are more likely to fall for a scheme that we've never heard about and that we do less checking-up than we should before "investing."
Who should be more wary? Contrary to media and government portrayals, neither the elderly nor young people are the largest groups of victims. And the groups least likely to succumb to fraud are those without a high school diploma and those with graduate degrees. The numerous rest of us apparently are not "streetwise."
To add insult to injury, every dollar lost to fraud must be replaced by earnings taxed at your marginal tax rate. For example, if you are in the 28% tax bracket, the loss of $1,000 to fraud can be recouped only after you earn another $1,389. It's small consolation that your loss would be government's gain.
A swindler hopes you won't or can't check him out. Often a scammer will create a false air of affluence or culture. He may even browbeat your spouse. A wife may be challenged with such comments as "Do you let your husband run your life?" or a husband with "Don't you wear the pants in your family?" Especially then, but also whenever you are about to save, invest, or spend a significant part of your funds, be forewarned.
Our book is written in easy-to-read language. It informs you about many widespread and costly scams and how to guard against them. With that knowledge you will be better equipped to protect yourself and your family, young and old, from today's financial predator.
Book Reviews
“Practical help can be found in the American Institute for Economic Research publication, ‘How to Avoid Financial Fraud.’”
Vermont Maturity Magazine
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